CA Warranties and Maintenance Agreements - BOE Guidance

Mar 18th, 2010

California issued State Board of Equalization Publication 119 on March 1 walking through the taxability of maintenance agreements and warranties.

Typically, an optional maintenance agreement is not subject to tax in California (software maintenance is an exception). Mandatory maintenance agreements are taxable so long as the underlying item that was sold was taxable as well. Further guidance may be found on the CA website or by contacting TTR at contact@ttrus.com.