Reg. 19-465.2. Retail sales: Warranty, maintenance and similar service contracts.
   (a)   Gross income from sales of warranty, maintenance and service contracts is exempt from the tax imposed by section 19-460.
   (b)   Transfers of tangible personal property in connection with a service, warranty, guaranty or maintenance agreement between a vendor and a vendee shall be subject to tax under section 19-460 only to the extent of gross income received from separately itemized charges made for the items of property transferred.
   (c)   The gross income derived from a maintenance insurance agreement, which agreement is entered into between the purchaser and any person other than the seller is not subject to tax imposed by section 19-460. If the provider of the maintenance insurance agreement pays for tangible personal property on behalf of the insured in the performance of the agreement, such sales are subject to all applicable taxes imposed by this article.
   (d)   Charges for tangible personal property provided under the terms of a warranty, maintenance or service contract exempted under section 19-465 are subject to tax as retail sales.
   (e)   However, gross income received by a dealer from a manufacturer for work performed under a manufacturer's warranty is not taxable under section 19-460.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 8784, § 31, 12-2-96)