Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
345.0000 MANUFACTURERS OF PERSONAL PROPERTY—Regulation 1524
345.0010 Cutting and Serging. A taxpayer cuts sweatshirts around the neckline and serged the cut edges to prevent raveling. If the sweatshirts were new, the taxpayer's labor charges are taxable, because they constitute the completion of manufacture of tangible personal property. If the sweatshirts were used, the taxpayer's labor charges are for nontaxable repair. The above is true whether the used sweatshirts provided by the customer were purchased from the taxpayer or someone else. 3/16/94.