D.C. Mun. Regs. tit. 9, r. 9-440

Current through Register Vol. 71, No. 35, August 30, 2024

Rule 9-440 - FABRICATION OR PRODUCTION OF PERSONAL PROPERTY

440.1

The tax shall be charged on the full sales price for the production or fabrication of tangible personal property on special order, even if charges for labor are segregated from the cost of the materials.

440.2

If a new item is being produced, the tax shall be collected on the full sales price. For example, if a manufacturer orders a repair part for machinery from a machine shop, the tax must be collected on the full sales price of the part, including labor.

440.3

The tax applies to instances where materials are furnished by the customer and the fabrication of a new item consists of labor only. The following are examples of labor subject to the tax:

(a) A steel fabricator or machine shop rolling, bending, cutting, boring or punching holes in materials furnished by a customer;

(b) A tailor making a suit from materials furnished by a customer;

(c) Drapes or slipcovers made from materials furnished by a customer;

(d) Printing of tangible personal property from materials furnished by the customer.

D.C. Mun. Regs. tit. 9, r. 9-440

Administrative Ruling No. 9. 16 DCRR