Publication 862
Sales and Use Tax
Classifications of Capital
Improvements and Repairs
to Real Property
Pub 862 (4/01)
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Publication 862
Sales and Use Tax
Classifications of Capital
Improvements and Repairs
to Real Property
Pub 862 (4/01)
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Publication 862 (4/01)
About This Publication
Publication 862 provides contractors and their customers (property owners) sales and compensating use tax
guidance for distinguishing between a capital improvement to real property and repairs, maintenance, or
installation services to real property. For this purpose, we include a list of various activities with respect to
real property and identify them as either a capital improvement or a repair, maintenance, or installation
service.
If a contractor does a capital improvement for a customer and the customer provides the contractor with a
properly completed Form ST-124, Certificate of Capital Improvement, no sales tax is required to be collected
from the customer. On the other hand, when a contractor performs a job that constitutes a repair,
maintenance, or installation service to real property, sales tax must be collected from the customer, unless the
contractor receives a properly completed Form ST-119.1, Exempt Organization Certification, or other
applicable exemption document.
In determining whether a job is a capital improvement, please keep in mind that the installation of certain
items listed as capital improvements on the following pages may not qualify as a capital improvement if the
items are installed by a commercial tenant as a trade fixture.
As a general rule, a contractor must pay sales tax to its supplier when it purchases tangible personal property.
It does not matter whether the tangible personal property will be used in performing a capital improvement
or a repair, maintenance, or installation service.
If you have questions about the material presented in this publication, please refer to the back cover of this
publication for the appropriate address or telephone number to contact for more information.
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Publication 862 (4/01)
Table of Contents
page
Part I-General Information
Tax on building materials ...................................................... -6-
Frequently used exemption documents ............................................ -6-
90 day rule for exemption documents ............................................. -7-
Services to real property........................................................ -7-
Real property................................................................ -7-
Tangible personal property ..................................................... -7-
Capital improvement.......................................................... -7-
Leasehold improvements....................................................... -8-
Repair and maintenance........................................................ -9-
Installation.................................................................. -9-
Part II- Listing of Capital Improvements and Repair, Maintenance, and Installation Services
Air cleaners ................................................................ -10-
Air conditioners............................................................. -10-
Bathrooms ................................................................. -10-
Brickwork ................................................................. -11-
Central air conditioning....................................................... -11-
Chimneys.................................................................. -11-
Decks..................................................................... -11-
Doors ..................................................................... -12-
Driveways, parking lots, and walks.............................................. -12-
Electrical .................................................................. -13-
Exterior ................................................................... -13-
Fire, water, wind damage...................................................... -14-
Fireplaces .................................................................. -14-
Floor coverings ............................................................. -15-
Floors and floorings.......................................................... -15-
Garage doors ............................................................... -15-
Heating
electric .............................................................. -16-
electric boiler......................................................... -16-
electric furnace........................................................ -16-
gas ................................................................. -16-
heat pump............................................................ -17-
hot water............................................................. -17-
oil.................................................................. -17-
radiant .............................................................. -18-
solar ................................................................ -18-
steam ............................................................... -18-
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Heating (cont.)
warm air duct system................................................... -18-
wood burning furnace, boiler, stove........................................ -19-
Hot water heaters............................................................ -19-
Humidifiers ................................................................ -19-
Kitchens................................................................... -19-
Landscaping and yard care..................................................... -20-
Masonry................................................................... -21-
Miscellaneous .............................................................. -21-
Painting ................................................................... -21-
Patios ..................................................................... -22-
Plumbing
piping............................................................... -22-
sinks................................................................ -22-
toilets ............................................................... -22-
tubs and showers ...................................................... -23-
Roofs and roofing materials.................................................... -23-
Septic systems .............................................................. -23-
Stairs ..................................................................... -24-
Sump pumps ............................................................... -24-
Swimming pools ............................................................ -24-
Ventilation ................................................................. -24-
Walls ..................................................................... -25-
Windows .................................................................. -25-
Yard care .................................................................. -26-
Need help?............................................................back cover
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Publication 862 (4/01)
Part I - General Information
Tax on building materials As a general rule, if you are a contractor or a property owner, you must pay
sales tax on your purchases of building materials, unless some exemption
applies, in which case you must provide an exemption certificate or other
document to the supplier which indicates that no tax is imposed or
required to be collected when the building materials are purchased.
Frequently used Instead of receiving a tax payment, suppliers may accept certain exemption
exemption documents documents. Examples of frequently used exemption documents and from
whom they may be accepted are:
From contractors
- Form ST-120.1, Contractor Exempt Purchase Certificate
- Form AU-297, Direct Payment Permit
From exempt organizations
- Form ST-119.1, Exempt Organization Certification
From farmers and commercial horse boarding operations
- Form ST-125, Farmers and Commercial Horse Boarding Operations
Exemption Certificate (For information on the newly expanded
exemptions applicable to farmers and commercial horse boarding
operations enacted by Chapter 407 of the Laws of 1999, please see
TSB-M-00(8)S.)
From a Qualified Empire Zone Enterprise (QEZE)
-Form ST-121.6, Qualified Empire Zone Enterprise (QEZE) Exempt
Purchase Certificate (For information on sales and use tax exemptions
afforded to a QEZE enacted by Chapter 63 of the Laws of 2000,
please see TSB-M-01(1)S.)
From retailers
- Form ST-120, Resale Certificate
From New York State and its political subdivisions and the United
States and its agencies
-Government Purchase Orders
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90 day rule for exemption If you are a contractor or supplier who makes a sale of services or
documents building materials that is exempt from tax, you must have a properly
completed exemption document in your possession no later than 90
days after the service is rendered or you will be required to collect
tax and the purchaser will need to file a claim for refund of the tax with
the Tax Department.
Services to real property Services to real property are classified as either a capital improvement
or a repair, maintenance or installation service. Installation services
include the installation of tangible personal property which remains
tangible personal property after its installation.
Real property The term real property means real property, property or land as defined
in the Real Property Tax Law and includes but is not limited to:
• land and vegetation growing on the land such as trees,
shrubs, bushes, and grass;
• buildings and structures erected upon, under, or above
land, or affixed to the land;
• utility lines, wires, and poles;
• mains, pipes and tanks for conducting steam, heat,
water, oil, gas, and electricity; and
• boilers, heating, ventilating, lighting apparatus, and
plumbing.
Tangible personal property The term tangible personal property means corporeal personal property
of any nature having a material existence and perceptibility to the
human senses including but not limited to materials, tools, equipment
and supplies.
Capital improvement A capital improvement is an addition or alteration to real property that:
• substantially adds to the value of the real property, or
appreciably prolongs the useful life of the real property;
• becomes part of the real property or is permanently
affixed to the real property so that removal would cause
material damage to the property or article itself; and
• is intended to become a permanent installation.
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However, the addition of a mobile home to real property is never a
capital improvement, regardless of how it is installed.
For special rules regarding when the installation of a floor covering
constitutes a capital improvement, see page 15.
In the case of a capital improvement, if you are a property owner who:
• purchases materials and supplies only and you perform
your own labor, you pay tax to the supplier on the
materials and supplies.
• purchases materials and supplies and hires a contractor
to perform the labor, you pay tax to the supplier on
the materials and supplies, but you do not pay tax to
the contractor for the labor.
• purchases materials and supplies and labor from the
contractor, you pay no tax.
In the case of a capital improvement, if you are a contractor who
purchases materials and supplies, you pay tax to the supplier and you
do not collect any sales tax from your customer.
Leasehold improvements As a general rule, additions or alterations to real property for or by a
tenant with respect to leased premises are presumed to be temporary in
nature. Consequently, they do not qualify as capital improvements.
However, these additions or alterations may qualify as capital
improvements if there is a demonstrated intention to make them
permanent (assuming the other qualifications are met). For example,
an intention of permanence would be demonstrated by a provision in
the building lease indicating that immediately upon installation title to
the installation vests with the lessor and the installed property is to
remain with the premises after the termination of the lease.
If a lease does not contain these provisions, other factors such as the
nature of the installation, or written agreements other than a lease
provision may be considered in determining the intention of the parties
with respect to the permanence of the installation. Please see TSB-M-
83(17)S for further information on leasehold improvements.
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Repair and maintenance Repair and maintenance relates to keeping real property in a condition
of fitness, efficiency, readiness and/or safety or to restoring it to such
condition.
In the case of a job that constitutes repair or maintenance, if you are a
property owner who:
• purchases materials and supplies only and performs
your own labor, you pay tax to the supplier on the
materials and supplies.
• purchases materials and supplies and hires a contractor
to perform the labor, you pay tax to the supplier on
the materials and supplies and to the contractor for
the labor.
• purchases materials and supplies and labor from a
contractor, you pay tax to the contractor on the total
charge.
In the case of a job that constitutes repair or maintenance, if you are a
contractor who:
• purchases materials, you pay tax to the supplier, even
though you are also required to collect tax from your
customer. However, you are entitled to a refund or
credit of the tax that you paid on the materials that you
transferred to the customer.
• purchases supplies, you pay tax to the supplier.
Installation Installation services are services related to setting up tangible personal
property or putting it in place for use.
If you are a contractor who installs items such as washing machines,
clothes dryers, dishwashers, refrigerators, furniture, etc., which when
installed or placed in real property do not become part of the real
property, you must collect tax on your charge for the installation. The
individual charge for any of these items is also taxable as the sale of
tangible personal property.
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Part II - Listing of Capital Improvements and
Repair, Maintenance, and Installation Services
Capital improvement* Repair, maintenance, or
installation
Air cleaners Installation of central air cleaner systems Repair or replacement of the following in self-
contained or central units:
Original installation of ductwork or required collector plates
additional ductwork electronic plates
filters
power boxes
Replacement of complete central air cleaner return air ducts
units sails
Installation or replacement of self-contained
air cleaners
Air conditioners (other than Original installation or complete replacement Repair or replacement of the following in in-
central air conditioning of through-the-wall mounted units window or through-the-wall mounted units:
systems) air flow controls fans
(see also - Central air blowers fan motors
conditioning) casings filters
compressors grilles
copper tubing motors
Installation or replacement of window air
conditioners
Bathrooms Complete remodeling of bathrooms (toilet, Installation of free-standing cabinets
(see also - Electrical, tub, and vanity)
Plumbing, and Walls) Repair of:
Complete installation or replacement cabinets tile
(including any necessary fixtures) of: exhaust fans toilets
cabinets toilets faucets tubs
(permanent) tubs mirrors tub or shower
exhaust fans tub or shower shower heads enclosures
floor tiles (if enclosures sinks vanities
ceramic or quarry vanities
type) wall tiles Replacement of faucets and shower heads
sinks
tile (floor or wall)
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Capital improvement* Repair, maintenance, or
installation
Brickwork Construction of new or complete replacement Fixing cracks
(see also -Chimneys, of brick:
Masonry) chimneys stairs or steps Replacing damaged bricks
exterior surfaces structures
fireplaces walls Repointing
Sandblasting
Central air conditioning Installation of central air conditioning Maintenance contracts
(see also - Air conditioners) systems
Repair or replacement of:
Original installation of ductwork or required blowers excess moisture
coils drains
additional ductwork compressors fans
condenser coils filters
Replacement of complete central air control devices refrigerant
conditioning units ductwork sections refrigerant tubes
Chimneys Addition or complete replacement of flue or Chimney cleaning
(see also - Brickwork, liner (metal or foam)
Fireplaces, Masonry) Fixing cracks
Complete replacement of chimneys
Installation of spark arrestors
Installation of new chimneys
Repair of flues
Repointing
Sealing of flashings
Repair or replacement of:
caps loose mortar
damaged bricks pots
flashings rain and draft
deflectors
Decks Additions to decks Cleaning of decks
(see also - Patios)
Installation or complete replacement of: Repair or partial replacement of :
• entire decks • decks
• floor of deck • floor of deck
• footings • footings
• stairs • stairs
• railings • railings
Water sealing, staining or painting of new Water sealing, staining or painting of existing
decks decks
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Capital improvement* Repair, maintenance, or
installation
Doors Closing off a doorway Addition of paneling to a door
Cutting of doorways Caulking (interior/exterior)
Installation or replacement of doors, or doors Elimination of binding or looseness
and frames, or storm doors with related
hardware Installation of the following items in an
existing door:
Painting, varnishing or staining a new door closers mailslots
decorative peepholes
moldings thresholds
kickplates weather stripping
Repair of existing doors
Painting, varnishing, or staining existing
doors
Repair or replacement of:
casing locksets
closers panels
door frames saddles
door knobs screens
glass panes stiles
handles stops
head jambs thresholds
hinges top rails
jambs trim
locks or latches weather stripping
Driveways, parking lots, and Installation or complete repaving (resurfacing) Replacement of:
walks of driveways, parking lots, and walks cobblestones
(see also - Exterior, crushed stone
Landscaping and yard care) Original landscaping of parking lot islands crushed stone with oil
Original installation of gravel or crushed stone Repairing and patching of holes and cracks
driveway
Replacing sections of concrete or blacktop
Original striping (line painting) on new driveways, parking lots, and walks
parking lot
Restriping, sealing, and dressing
Resurfacing of gravel or crushed stone
driveways with new gravel or crushed
stone
Maintaining or repairing of parking lot
islands, including ongoing landscaping
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Capital improvement* Repair, maintenance, or
installation
Electrical Complete wiring or rewiring of structures or Installation of a dimmer switch to replace an
the upgrading of a service existing switch
Additions to wiring systems; for example, new Repair of:
circuits floor outlets metal raceways
fluorescent multi-outlet strips
In-wall installations of electrical wiring and fixtures outdoor lamppost
lighting fixtures wall boxes
communications cables in connection with main power boxes wall fixtures
the installation of burglar alarms or wiring
security systems
Replacement of:
Original in-wall installations of telephone circuit breakers fuses
fluorescent fixture light bulbs
wiring, speaker wire, computer cable or parts: (ballasts, outlets
coaxial cable, with the exception of the starters, tubes) receptacles
installation of telephone wiring installed switches
by the telephone service provider, in
connection with the telephone service that
it is selling or cable television cable
installed by the cable television service
provider in connection with its service.
Original installation of:
circuit breakers receptacles
outlets switches
Original installation or complete replacement
of:
add-on panels main power boxes
breaker panels metal raceways
ceiling fixtures multi-outlet strips
door bells outdoor lamp posts
door buzzers wall boxes
door chimes wall fixtures
floor outlets wiring
fluorescent
fixtures
Exterior Additions to existing structures Installation of:
(See also - Driveways, canvas awnings
parking lots and walks, Application of siding to structures patching cracks
Landscaping and yard care)
Complete replacement of porches Painting of existing:
awnings
brickwork
Construction of: concrete
decks garages
dormers new homes Repair of louvers and shutters
footings new porches
foundations pole barns
Repair or maintenance of:
Deepening existing water wells awnings (including canvas)
exterior surfaces
patios
Drilling or boring new water wells roof decks
water well pumps
Excavation work if for a capital improvement
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Capital improvement* Repair, maintenance, or
installation
Exterior (cont.) Insulating structures Repair, replacement, or maintenance of:
canvas awnings
Installation of new or complete replacement of fence pickets, posts, rails or sections
existing: flashings
gates
awnings (other fences shingles (partial)
than canvas) louvers siding (partial)
gutter and shutters
downspout water well pumps Excavation work - if for repair and
systems maintenance
Installation or complete replacement of Snow removal
permanent (non-floating) docks
Installation or replacement of floating docks
Complete re-siding of structures
Repair or maintenance of any dock
Painting of new structures
Fire, water, wind damage Rehabilitation of damaged structures (See Cleaning
appropriate sections for work performed.)
Deodorizing
Demolition of a building or structure
Refinishing floors
Removal of water or debris
Repainting
Replacement of broken glass
Fireplaces Installation or complete replacement of Cleaning
(see also - Chimneys, fireplaces (other than freestanding units or
Heating - wood burning inserts) Fixing cracks
furnace, boiler, stove)
Repointing
Repair or replacement of:
ash pits headers
cold air inlets hearths
damaged bricks lintels
dampers mantels
damper controls smoke chambers
fireboxes smoke shelves
firebricks warm air outlets
firechambers
Installation, maintenance or repair of
freestanding fireplace unit or insert
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Capital improvement* Repair, maintenance, or
installation
Floor coverings Installation of carpet, carpet tile, carpet Installation of carpet, carpet tile, carpet
(See also-Floors and padding, linoleum and vinyl roll floor padding, linoleum and vinyl roll floor
floorings, Bathrooms, Fire, covering, linoleum tile, vinyl tile, and other covering, linoleum, vinyl tile, and other
water and wind damage) similar floor covering, as the initial finished similar floor coverings in an existing
floor covering: building, or in a building more than 6
in the new construction of a building or months after the building has otherwise
structure; or been completed.
in a new addition to an existing building or
structure; or
in the total reconstruction of an existing Repair maintenance or replacement of any of
building or structure. the above floor coverings.
(The installation of floor covering under any
other circumstance is not a capital
improvement.)
Floors and floorings Installation or complete replacement of Repair, maintenance or partial replacement of
floorings such as wood floor, floating floorings such as wood floor, ceramic tile
wood laminate floors, ceramic tile floor, floor, terrazzo, marble, concrete and other
terrazzo, marble, concrete and other similar floors
similar floors
Cleaning, stripping, sanding, waterproofing,
Cleaning, sanding, waterproofing, painting, painting, staining, varnishing and waxing
staining, varnishing and waxing new existing floors
floors
Raised flooring [see TSB-M-98(2)S for more
information]
Garage doors Installation or replacement of complete garage Adjustment of spring tension
doors
Lubrication of parts
Installation or complete replacement of
electric garage door openers and controls Repair or maintenance of electric garage door
openers and controls
Painting, varnishing or staining of new garage
doors Painting, varnishing or staining of existing
garage doors
Weatherstripping
Repair or replacement of:
cables panels
casings rollers
door frames saddles
door sections springs
glass panes stiles
hinges stops
jambs tracks
locks trim
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Capital improvement* Repair, maintenance, or
installation
Heating -electric Addition to permanently installed electric Cleaning
heating systems
Maintenance contracts
Installation or replacement of permanently
installed electric heating units or systems Repair of baseboard heaters and wall heaters
Repair or replacement of heating elements
and thermostats
Heating -electric boiler Installation or complete replacement of Cleaning of electric boiler
electric boilers
Maintenance contracts
Repair or replacement of:
automatic airvents pressure controls
circulators relief valves
controls return lines
drain valves supply lines
expansion tanks thermostats
heating elements
Heating -electric furnaceInstallation or complete replacement of Cleaning of electric furnaces
electric furnaces
Maintenance contracts
Repair or replacement of:
blowers low-voltage
condensers terminals
elements relays
filters sequencers
fuses thermostats
transformers
Heating -gas Installation or complete replacement of gas Cleaning of gas furnaces
furnaces
Maintenance contracts
Repair or replacement of:
burner heads pilot gas lines
draft hoods pressure regulators
filters safety control
main gas valves valves
main shutoff safety thermostat
valves elements
vent pipes
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Capital improvement* Repair, maintenance, or
installation
Heating -heat pumpInstallation or complete replacement of heat Cleaning of heat pump units
pump units
Maintenance contracts
Repair or replacement of:
blowers compressors
coils valves
Heating -hot waterAdditions to hot water systems Bleeding of radiators
Installation or complete replacement of hot Cleaning
water boilers or systems
Flushing of boilers
Original insulation of new or replacement
piping systems Maintenance contracts
Repair or replacement of:
air vent valves pressure reducing
boiler tubes valves
circulating pumps pressure-relief
coils valves
drain cocks radiators
expansion tanks return mains
furnace controls risers
main shutoff supply mains
valves thermostats
piping sections thermocouples
water supply lines
Heating -oil Installation or complete replacement of oil Cleaning of oil furnaces or boilers
burner guns
Maintenance contracts
Installation or complete replacement of oil
furnaces or boilers Repair of oil burner guns
Original installation or replacement of oil Repair or replacement of:
tanks air tubes refractory firepots
blowers stack-control relays
fuel lines storage tanks
motors strainer pumps
oil - level control transformers
valves
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Capital improvement* Repair, maintenance, or
installation
Heating -radiant Additions to radiant systems Cleaning of radiant systems
Complete replacement of radiant systems Maintenance contracts
Installation of radiant systems Repair or replacement of:
balancing valves furnace controls
circulating pumps returns
coils shutoff valves
common returns tanks (to trap air)
drain cocks thermostats
feed lines vents
Heating -solar Additions to permanent solar systems Cleaning of solar heating systems
Installation or replacement of permanent solar Maintenance contracts
systems
Repair or maintenance of solar heating
systems
Heating -steam Additions to steam systems Cleaning of steam systems
Installation or replacement of steam boilers or Maintenance contracts
systems
Repair or replacement of:
Insulation of piping systems air vents shutoff valves
drain cocks steam gauges
drain plugs steam mains
piping (sections) thermostats
radiators water gauges
reducers water supply lines
safety valves wet returns
Heating - warm air duct Additions to warm air duct systems Cleaning of warm air duct systems
system
Installation or replacement of warm air duct Repair or replacement of:
systems angle boots plenums
balance dampers plenum takeoffs
Original insulation of new or replacement duct cold air returns side stack takeoffs
duct sections starting collars
systems elbows supply stackheads
endcaps top stack takeoffs
floor diffusers
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Capital improvement* Repair, maintenance, or
installation
Heating -wood burning Installation or replacement of wood burning Cleaning of wood burning furnaces, boilers
furnace, boiler, stove furnaces or boilers and stoves
(see also - Fireplaces)
Original installation of wood burning stoves Maintenance contracts
(Including strengthening floors and
fireproofing walls and floors) Replacement of wood burning stoves
Repair and maintenance of wood burning
furnaces, boilers or stoves
Hot water heaters Installation or replacement of hot water Cleaning of hot water heaters
heaters
Maintenance contracts
Repair or replacement of:
anode rods inlet-outlet pipes
burners outlet pipes
casing covers tank linings
connectors temperature
drain pipes control knobs
drain valves temperature-
draft diverters pressure relief
flue baffles, bodies valves
or collars thermocouples
glass inner tanks thermostats
heating elements
Humidifiers Installation or complete replacement of Cleaning of humidifiers
permanently installed humidifiers
Maintenance contracts
Repair or replacement of:
evaporator pads motors
fans trays
Kitchens Installation or complete replacement of: Installation of ductless hoods
(see also - Electrical, built-in countertops
Plumbing, and Walls) dishwashers ducted hoods Installation of free-standing appliances
freezers exhaust fans
ranges garbage disposals
refrigerators kitchen cabinets Painting, varnishing or staining of existing
ovens sinks kitchen cabinets
water softeners
Repair or maintenance of:
Painting, varnishing or staining of new cabinets freezers
kitchen cabinets countertops garbage disposals
dishwashers ovens
Complete reconditioning of kitchen cabinets ducted or ductless ranges
hoods refrigerators
exhaust fans sinks`
faucets
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Capital improvement* Repair, maintenance, or
installation
Kitchens (cont.) Replacement of:
cabinet doors portable
faucets dishwashers
portions of freezers
countertops ranges
portions of refrigerators
cabinets
Landscaping and yard care Original installation or complete replacement Application of fertilizers, herbicides and
(see also - Driveways, of: pesticides
parking lots, and walks, fences (permanent) lawns or complete
Exterior) flagstone walks sections* of a lawn Installation of free standing fountains
patio block or other ponds (permanent)
types of walks retaining walls
fountains (except rock gardens Installation of temporary or moveable ponds
free standing) underground lawn
gates sprinkler systems Maintenance contracts
Planting or replacing perennials Mowing of lawns
Planting or replacing of shrubs and trees Planting of annuals
Original installation of gravel or crushed stone Pruning, winter banking, fertilizing of trees
paths and shrubs
Original installation or complete replacement Removal without replacement of trees or
of concrete and blacktop sidewalks shrubs (when not part of a capital
improvement project)
Resurfacing of blacktop sidewalks
Repair of walks; adding stone, replacing
* A “complete section” of a lawn is a section damaged patio blocks or bricks, releveling
surrounded by driveways, buildings, walks, repairing cracks in concrete
walks, structures or other barriers which
divide it from other sections of lawn. Repair of fences and gates
Repair or replacement of the following in
underground lawn sprinkler systems:
centrifugal pumps
pump controllers
remote control valves
sections of piping
sprinkler controllers
sprinkler heads
Repairing sections of retaining walls
Replacement of fence fabric
Reseeding or overseeding of lawns
Sodding bare spots
Straightening or repairing retaining walls
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Capital improvement* Repair, maintenance, or
installation
Masonry Installation or complete replacement of: Repair or partial replacement of:
(see also - Brickwork, • block walls • poured concrete • block walls • poured concrete
Chimneys) • brick walls posts • brick walls posts
• footings slabs • footings slabs
• foundations sidewalks • foundations sidewalks
• w a lk s stairways •walks stairways
walls walls
Miscellaneous Asbestos removal (when done as part of a Asbestos removal (when done as part of a
capital improvement contract) repair or maintenance contract)
Debris removal from construction sites (when Debris removal from construction sites (when
done as part of a capital improvement done as part of a repair or maintenance
contract) contract)
Fire sprinkler system installed or replaced in Installation or replacement of:
ceilings and connected to water supply •• attic fans •• mail boxes
systems (removable) (installed on wall
•• independent smoke or post)
or heat detectors •• smoke detectors
Installation or complete replacement of (battery operated)
elevators
Periodic maintenance services on elevators
Installation or complete replacement of: and escalators
••attic fans ••central vacuum
(permanently systems Pest control
installed) ••suspended ceilings
••fire or smoke
detectors Repair or maintenance of central vacuum
(permanently systems
installed)
Repair or maintenance of elevators
Installation of winter protection, temporary
heat, electric and plumbing at construction
sites
Painting Painting of new buildings, structures, or Painting or repainting of existing buildings,
additions structures, or parts thereof
Painting of any new additions or installations
that constitute capital improvements
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Publication 862 (4/01)
Capital improvement* Repair, maintenance, or
installation
Patios Installation or complete replacement of: Painting, varnishing or waterproofing existing
(see also - Decks) blacktop patios patio roofs patios
concrete patios wood patios
flagstone, block or Repair or maintenance of patios
brick patios
Painting, varnishing or waterproofing new Repairing and patching of holes or cracks
patios
Replacing sections of concrete patios
Replacement of blocks and flagstones
Plumbing -piping Additions to piping systems Repair of pipes and fittings
Excavation required for installation or Repair of sprinklers, water softeners and well
complete replacement of piping systems pumps
Original insulation of new or replacement Repair or replacement of:
piping systems air chambers shutoff valves
cabinets storage tanks
Installation or complete replacement of: relief valves traps
garbage disposals water softeners Thawing frozen pipes
piping systems water pumps
sprinkler systems
Unclogging of main drain pipes
Plumbing -sinks Installation or complete replacement of sinks Repair or replacement of:
and necessary sink fittings aerators inlet seals
bottom cages locknuts,
couplings connectors
diverter assemblies packing nuts
escutcheons seats
faucets spouts
handles spray heads
handle assemblies stems
hose assemblies traps
hose guides washers
Unclogging of sink drains
Plumbing -toilets Installation or complete replacement of toilets Cleaning
and necessary toilet fittings
Repair or replacement of:
float arms/balls tank drains
flush handles toilet seals
guide arms toilets seats
inlet valves trip sleeves
lift wires tubes
plungers valve seats
tank balls washers
Unclogging of toilet drains
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Publication 862 (4/01)
Capital improvement* Repair, maintenance, or
installation
Plumbing -tubs and showers Installation or complete replacement Cleaning
(including necessary fittings) of:
Shower stalls Repair of enclosures
Tubs
Tub enclosures Repair or replacement of:
automatic diverters retainer clips
cartridges shower bases
ears shower heads
faucets stems
faucet heads stop tubes
handles traps
red flats washers
Unclogging of tub-shower drains
Roofs and roofing materials Complete replacement of a roof or roofing Application of roof coating or resaturants to
materials (entire building), or the complete existing roofs
side of a peaked roof, or the complete roof
or roofing materials on a wing, turret, Cleaning and repairing of all types of roof
dormer, etc. systems, gutters, downspouts, drains, etc.
Installation or replacement of complete gutter Repair or spot replacement of all types of
and downspout systems roofs or roofing materials (asphalt, shingle,
slate, tile, built-up, metal, single ply)
Original installation of all types of roof
systems including accessories Repair or replacement of the following items
or accessories:
copings louvers and screens
cornices metal or
drip edges composition
electric heating valleys
tape metal ornaments
expansion joints metal stacks
flashings (all rain and draft
types) deflectors
gravel stops and shingles (all types)
fascias skylights and
gutter and scuttles
downspout snow guards
systems (partial) snow slides
heating cables ventilators
Septic systems Excavation required for installation Cleaning or pumping out of septic tank
Installation or complete replacement of: Excavation required for repair or maintenance
distribution boxes lines
dry wells seepage pits Repair or maintenance of:
grease traps septic tanks distribution boxes lines
leach fields dry wells seepage pits
grease traps septic tanks
leach fields
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Publication 862 (4/01)
Capital improvement* Repair, maintenance, or
installation
Stairs Installation or complete replacement of sets of Eliminating squeaks
stairs or staircases
Painting, varnishing or staining of existing
Painting, varnishing or staining of new stairs stairs
or staircases
Repair or replacement of:
balusters termite damage
handrails treads
newels wet and dry rot
risers
Tightening of loose balusters
Sump pumps Digging of sump pump holes Installation or replacement of portable sump
pumps
Installation or complete replacement of
permanent sump pumps Repair or replacement (in permanent or
portable sump pumps) of:
electrical cords piping and
floats connectors
motors pump suction heads
shutoff switches
Swimming pools Installation of in-ground swimming pool, Installation or replacement of:
including excavation work done in • above ground swimming pool including
connection with the installation excavation work done in connection with
the installation
• pumps, filters etc.
Original installation or complete replacement • heater for above ground swimming pool
of:
• heater for in-ground swimming pool Repair or maintenance of above ground or in-
• liner for in-ground swimming pool ground swimming pool, including:
• cleaning
• repairing of liners
• repairing pumps and heaters
Ventilation Installation or complete replacement of Installation or replacement of portable attic
permanent: fans
attic fans roof vents
exhaust fans soffit vents Repair, maintenance or replacement of the
gable vents wind turbines following in permanent or portable attic or
exhaust fans:
bearings motors
blades shutters
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Publication 862 (4/01)
Capital improvement* Repair, maintenance, or
installation
Walls Baseboards and trim installed in connection Cleaning
with paneling walls
Fixing nail pops
Baseboards and trim installed on new or
completely replaced walls Painting of existing walls (including murals)
Complete paneling of new or existing walls Patching cracks
Finishing of new or completely replaced walls Regrouting of ceramic tile
Installation or complete replacement of tile Repair of:
walls dents termite damage
split wallboard tape wet and dry rot
Installation or complete replacement of a wall
Replacement of:
Original insulation of new or completely ceramic fixtures
replaced walls damaged ceramic tiles
existing baseboards, molding, trim
wallboard panels
Painting of new or completely replaced walls wood panels
(including murals)
Stopping water leaks
Removal of a wall
Wallpapering of new or completely replaced Taping of existing walls
walls
Wallpapering of existing walls
Waterproofing new or completely replaced
walls
Windows Application of window film or coating in Applying putty, window film or coating to
connection with original installation or existing windows
complete replacement
Caulking of existing windows
(interior/exterior)
Caulking of new or completely replaced
windows
Eliminating sticking
Installation or complete replacement of
Installation of:
permanent combination storm windows drapery rods/ valances
hardware Venetian blinds
Installation or complete replacement of shades window quilts
complete windows (frames and sashes)
Lubricating sashes
Painting, varnishing or staining of new or
completely replaced windows Painting, varnishing or staining of existing
windows
Installation or complete replacement of
permanent window shutters Repair of:
broken glass window frames
termite damage window sills
wet and dry rot
windows
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Publication 862 (4/01)
Capital improvement* Repair, maintenance, or
installation
Windows (cont.) Replacement of:
aprons sash weights
balances sash weight
frames pulleys
hardware (latches, side casings
handles, locks, side jambs
etc.) stools
inside stops storm windows
parting strips panes or screens
pocket covers window frames
sash balances window panes
sash cords (glass or plastic)
sash stiles window sills
yoke or head jambs
Weatherstripping
Yard Care
(See - Landscaping and yard
care)
* Items characterized in this Part as Capital Improvements will not qualify as capital improvements if they are
installed for a tenant and the lease provides that they must be removed at the end of the lease if the item is otherwise
intended not to be permanently installed. Please see “Leasehold improvements” on page 8 of this publication.
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Publication 862
(4/01)
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