Is labor taxable?

Whether labor is subject to sales tax depends upon the circumstances under which the labor is performed:

If tangible personal property is not transferred, labor is not taxable.
If custom-made items are sold at retail, labor is taxable. See Illinois Administrative Code, Title 86, Section 130.2140.
With regard to installation charges, labor charges that are contracted for separately from the selling price of the tangible personal property are not taxable. Labor charges that are not contracted for separately are a part of the selling price and are taxable. See Illinois Administrative Code, Title 86, Section 130.450.

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