Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
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
435.0440 Tank Truck, Creation of, as Fabrication or Repair. A shop not only installs a propane tank on a chassis, but also makes and installs the fenders, skirts, tool box, brackets and other parts required to convert the chassis into a complete tank truck.
Assuming that the chassis is new, the entire operation constitutes a step in the fabrication of a complete tank truck and that the full charge is subject to the tax.
If the truck chassis is not new and the operation consists of rebuilding or converting used equipment owned by the petroleum distributor, the operation is not the fabrication of a truck. In this event, the tax will apply to the retail sales price of the fabricated articles and parts, such as tool boxes and fenders, etc., and other materials furnished, but not to installation charges. 1/24/51.