Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
315.0000 INSTALLING, REPAIRING, RECONDITIONING IN GENERAL—Regulation 1546
(a) IN GENERAL
315.0292 Remanufacture of Mobile Concrete Mixer Drums. Steps in remanufacturing of mobile concrete mixer drums are as follows:
(1) Remove old drum from truck.
(2) Buy the steel.
(3)(a) Remove concrete build-up.
(b) Skip cut drum—cutting slots in old shell so it can be removed later.
(4) Lay out, cut and form steel to fit drum.
(5) Tack weld the new steel over old shell.
(6) Remove the old shell from the inside.
(7) Weld inside and outside weld seams.
(8) Install new internal parts.
(9) Leak check, clean and prime.
(10) Install on truck.
Based on the above described process, the nontaxable repair and installation labor consists of removing the old drum (item 1), removing the concrete (item 3a), and installing the new drum (item 10). The charges for all the other work listed are subject to sales tax as part of the charge for fabricating the new drum. 8/25/87.