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Save. If you take your car in for repairs in Ohio, expect to be charged sales tax on the mechanic's labor. At the time of publication, the Ohio sales and use tax rate is 5.5 percent.ther labor services that are subject to sales tax in Ohio include lawn care or landscaping, security, janitorial and building maintenance, exterminating and installing personal property. Any sort of repair service, from mechanics to tailors, is subject to sales tax, unless the item under repair is tax exempt.
The tax on labor performed in auto repair shops is a sales tax. Whether sales tax is charged depends on state law. In the states that impose sales tax, the answer sometimes hinges on the definition of the word labor.. It also depends on whether parts and labor are billed separately or as a flat charge.or example, if labor is charged by the hour, a listing of the number of hours for each repair item should be on the bill. Auto repair shop owners in these states charge sales tax solely on the total charge for parts. Related Reading: How to Allocate Costs to Labor Hours.