I was always under the belief that labor cannot be taxed. I am not talking about wages but labor. Like if you take your car to the mechanic and they charge you for parts and labor, only parts should/can be taxed. I ran into an interesting situation last week. I went to get a picture framed and they did not itemized the charges. It was basically a one line charge then it was taxed. I asked them how labor plays into it and they said that labor was part of the charge. Then I was charged tax on it. Doesn't this mean that labor was now taxed? Isn't this illegal?