Hi all,

What does this phrase from the NJ sales tax guidance mean?

"The purchase and installation of an air conditioner is taxable when
the unit is placed into an existing space
or metal casing that is part of a structure. An air conditioner that
can be removed from its casing by the
owner is not a capital improvement and remains tangible personal
property."

When is an central air conditioner not put into an 'existing space'?
Every AC unit, brand new or a replacement is put into an existing
space, not into outer space or something.

So if we replaced a 20 year old unit with new compressor, blower,
condenser - are we supposed to pay sales tax?