Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
435.0000 PRODUCING, FABRICATING AND PROCESSING PROPERTY FURNISHED BY CONSUMERS—GENERAL RULES—Regulation 1526
(b) REPAIRING, RECONDITIONING AND INSTALLATION DISTINGUISHED
435.0220 Binding, Serging and Sewing of Carpeting. When carpeting is sold, other than a contract to furnish and install wall-to-call carpet, the tax applies to all charges except for actual installation charges. Thus charges for binding, serging, or sewing of carpeting for the purpose of fabricating a rug of a prescribed size or shape are subject to the tax, whether performed before or after title passes. On the other hand, sewing, serging and binding which is incidental to and performed in connection with a contract to furnish and install carpeting, are regarded as part of the labor of installation and the tax will not apply with respect to such charges. The contractor installing the carpet is the consumer of all materials used in contracts to install wall-to-wall carpet. 7/5/51.