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Business Taxes Law Guide—Revision 2024

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 435.0380

(b) Repairing, Reconditioning and Installation Distinguished


435.0380 Pipe. Burning, sandblasting, straightening, cutting, welding and wrapping of old pipe is done to restore the pipe to its previous condition. Tax applies to the sales price of the materials used. The labor expended is nontaxable repair labor. However, welding pipe to make its length greater than it was goes beyond restoration and constitutes taxable fabrication. 11/5/64.