I have received an email mentions about 1099
"In advance of your service appointment, please complete a W-9 form via the secure link below so we can send you your 1099 tax form at the end of the year."
Does this mean we will be taxed for the official price $5500 or whatever it is?
yes, as with any winnings over $600, you're responsible for the taxes. You won't pay state sales tax. You just have to report it on your taxes when you file to pay any federal tax responsibilities.