What is included in cost price?

Use tax is due on the cost price of tangible personal property or digital products. Cost price is the lesser of:

1. The actual cost of tangible personal property or digital products (without any deduction for the cost of materials used, labor cost or service cost). Cost price includes service costs for installation and transportation charges. However, cost price does not include labor charges or services for installing, applying, remodeling, or repairing property sold if those costs are separately billed to the customer at the time of installation; or
2. The reasonable market value of the tangible personal property or digital product at the time it becomes susceptible to use tax.