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
(c) MISCELLANEOUS OPERATIONS
(1) Cutting the carpet and attaching binding to finish the edges to make doormats.
(2) Adding a border of contrasting carpet to another piece of carpet to make an area rug.
(3) Cutting a completed rug into several pieces and finishing the cut edges with binding and fringe.
(4) Assembling a rug from carpet scraps both supplied by the customer and from the taxpayers scrap supply.
The work performed is for the fabrication of tangible personal property from customer furnished materials. As such, tax applies to the total amount charged for the labor and materials under Regulation 1526. 12/21/92.