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
(c) MISCELLANEOUS OPERATIONS
435.0820 Experimental Street Sweeper. Company A, which is under an oral contractual agreement to manufacture, assemble, test and replace experimental parts for Company B, which is in the process of developing experimental street sweepers, is engaged in fabrication of the complete street sweeper. Thus, the charges made by Company A are subject to tax unless Company B is holding the sweeper for resale, in which case, the total amount charged by Company A, except that attributable to the experimental parts which are removed because they do not meet Company B's expectations, would be exempt as a sale for resale. 12/2/66; 12/27/66.