This 2016-17 State Budget includes several new sales tax provisions intended to clarify the application of sales and use tax on certain repair, maintenance and installation services and provides a grace period for under-collection of that tax by contractors in 2016. These new provisions will be important to individuals and companies who provide repair, maintenance and installation services to real property. For example, as opposed to current sales and use tax law, these new provisions will treat similar transactions the same regardless who performs the service. This bill removes the distinction and provides that all businesses that provide taxable repair, maintenance and installation services will be treated the same. As a practical matter, this will have the effect of taxing many more repair and maintenance services to real property. Read the attached article for details on this tax change.