Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0022

480.0022 Beauty College. A beauty college charges $1600 tuition for a prescribed course in cosmetology. This lump-sum charge includes 1699 hours of training and a textbook, printed material, and supply kit consisting of a curling iron, blow dryer, brushes, scissors, and hair razor. The beauty college purchases the items tax paid at source. Total cost to the beauty college for all of the above is approximately $75.

Under the circumstances, the beauty college's tax liability is extinguished by paying tax at source. The college provides extensive classroom instruction and the cost of the materials is less than 5% of the tuition charge. Also, the college purchases the material in fabricated form. Thus, there is no fabrication labor which escapes taxation. 1/31/80.