Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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P

435.0000 PRODUCING, FABRICATING AND PROCESSING PROPERTY FURNISHED BY CONSUMERS—GENERAL RULES—Regulation 1526

Annotation 435.0584

(c) MISCELLANEOUS OPERATIONS

435.0584 Colorways for Fabric Designs. A person who produces and sells production art (colorways) for fabric designs is a retailer of tangible personal property. The colorway is consumed in the process of producing the fabric and it is not incorporated into the fabric. The colorway is in the form of tangible personal property and, thus, its sales are subject to tax.

Also, a person hired by a customer to change the color of a colorway to create a new design is in fact producing a new design and, therefore, such work is a taxable fabrication sale. 1/31/90.