Important Notice: Sales and Use Tax on Service Contracts for Motor Vehicles Subject to Highway Use Tax

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This document serves as notice that the sales price of a service contract sourced to this State and sold at retail to maintain or repair a motor vehicle is subject to the 4.75% general State and applicable local (2.00% or 2.25%) and transit (0.50%) rates of sales and use tax. The sales price of any such service contract is not part of the gross receipts derived from the lease or rental of a motor vehicle or a part of the retail value of a motor vehicle. This notice is dated February 7, 2014.