TR 20: Fabrication and Manufacturing Labor
Fabrication includes any operation which results in the creation, production or manufacture of an article of tangible personal property, or is a step in a process or series of operations resulting in the creation or production of such an article. Fabrication/manufacturing labor is subject to Boulder sales/use tax. The Boulder Revised Code (Code) includes fabrication/manufacturing labor in the definition of "price" or "purchase price" at section 3-1-1 , BRC, 1981: "The gross purchase price of articles sold after manufacturing or after having been made to order, including the gross value of all of the materials used, and the labor and services performed, and the profit thereon."
Labor used to render tangible personal property useable and charges for connecting or installing taxable services are subject to Boulder sales/use tax. This would include, but not be limited to, installation of telephone or other utility services, new telephone extensions or cable outlets or moving existing outlets. The Code includes this labor and these charges in the definition of "taxable services" at section 3-1-1 , BRC, 1981: "Labor used to render tangible personal property sold or leased into a form usable by the purchaser or lessee and the charge for connecting or installing taxable services for the purchaser or lessee;"
Fabrication/manufacturing labor may be exempt from sales/use tax if the labor is construction labor. (See TR13: "Construction and Contractors" for detailed information) Repair labor may also be exempt from sales/use tax. (See TR36: "Repair Work" for detailed information)
Last Updated on Wednesday, 11 July 2012 12:20