Fabrication Labor Charges

The tax applies to any charge for services to bring the subject of a sale to its finished state and in the condition specified by the buyer. These include charges for alteration, lubrication, engraving, monogramming, cleaning, customizing, or dealer preparation. Fabrication or assembly labor is taxable even when performed at a job site or on a customer's premises.

The tax must be collected on charges for assembling pre-manufactured computer workstations and modular office furniture on a customer's premises for the first time. However, the tax does not apply to a charge for setting completed pieces of office furniture in place. In addition, the tax does not apply to charges for re-arranging existing furniture, adding accessories to existing furniture or reconfiguring existing modular furniture to create additional or fewer units.

One of the most familiar areas is the work performed by a tailor. The money a tailor charges for fashioning a piece of cloth into a suit is subject to tax whether the cloth is sold by the tailor or provided by the customer. The money a clothier charges for the alteration of a new suit to meet the requirements of a customer is subject to tax. The tax is also applicable if the customer chooses to have these alterations performed by his own tailor. However, the charge that a tailor makes for altering or repairing a used suit to restore it to its original condition is not subject to tax.