Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
435.0000 PRODUCING, FABRICATING AND PROCESSING PROPERTY FURNISHED BY CONSUMERS—GENERAL RULES—Regulation 1526
(c) MISCELLANEOUS OPERATIONS
435.0640 Custom Airplane Interiors and Equipment. Outfitting a new plane received from the manufacturer with custom interior and additional electrical and electronic equipment to make it complete and ready for use constitutes fabrication of tangible property, which includes the removing and revamping of the floor, rewiring and modifying existing customer provided equipment to integrate it with the custom interior. Labor charges for the removal and replacement of equipment with more sophisticated equipment are exempt unless such charges were included in the charges for modification or change in the interior so that the more sophisticated equipment could be installed. The charges for preserving aircraft equipment, compliance with the manufacturer's service bulletins and adjustments of existing equipment, not being part of the addition of the custom interior and equipment, are not taxable. 4/6/65.