A Wyoming tax bulletin addresses the sales tax treatment of various services performed in conjunction with nontaxable tow services. A tow service involving a vehicle being moved from one location to another, without the performance of any other service, is considered to be the transportation of freight, which is not taxable.
On the other hand, services that repair, alter, and/or improve the vehicle, such as jump starts, lock outs, tire changes, adding water to a radiator, are subject to sales tax. The price subject to sales tax would include all materials, parts, and labor that the service provider used in the repair. If towing and taxable services are provided, the charge for the tow service is not subject to sales tax if it is separately stated on the invoice.
Local Tax Rate on Taxable Repairs
A taxable service is subject to the tax rate for the location where the customer has the ability to make first use of the service after it is rendered. For instance, if the service provider changes a tire on a roadway located in Lincoln County, the current sales/use tax in effect for Lincoln County should be charged and collected. On the other hand, if a vehicle is towed from Laramie County to a shop located in Albany County for repairs and the owner of the vehicle picks up the vehicle at the garage in Albany County, the customer would owe sales tax on the repair service at the current rate for Albany County.
Fees associated with a nontaxable tow service, such as hook-up, off-load, rough road, after hours, and trailer fees are not subject to sales tax. Fees associated with a taxable repair service, such as a minimum fee, after-hours fee, waste disposal fee, or shop fee, are subject to sales tax.
Vehicle storage fees are not subject to sales tax. Regarding wreck and recovery services, the tow portion as well as the charge to load and clean-up cargo from a roadway are not subject to sales tax. Towing Services, Sales Tax Bulletin, Wyoming Department of Revenue, May 5, 2017