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BTLG Table of Contents > Sales and Use Tax Annotations > I > 315.0000 Installing, Repairing, Reconditioning in General > Annotation 315.0298

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I

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315.0000 Installing, Repairing, Reconditioning in General—Regulation 1546

Annotation 315.0298

(a) In General

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315.0298 Screenprint onto Used T-Shirt. Screenprinting onto a customer's T-shirt which has been worn previously is regarded as repairing the T-shirt. If a separate charge is made for materials incorporated onto the T-shirt, the taxpayer is regarded as the retailer of those materials and sales tax applies to those material charges. If a separate charge is not made for materials but the retail value of those materials is more than 10 percent of the total charge made, then the taxpayer is also regarded as the retailer of materials. The remainder of the charges for repairs would not be subject to sales tax.

When the taxpayer performs repairs and is not regarded as a retailer (i.e., value of materials is less than 10 percent and the charge is billed lump sum) as discussed above, the taxpayer is the consumer of all materials furnished in connection with repairs. Sales or use tax applies to the taxpayer's purchase of such materials. 9/17/91.