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