Tax Rules: Final: 5703-9
5703-9-20 Sales and use tax; production or
fabrication of tangible personal property
(A) Production or fabrication of tangible personal property
for a consideration is included in the definition of "sale"
and "selling," as defined in division (B) of section 5739.01
of the Revised Code, whether all or a portion of the
materials are supplied by the person performing the
production or fabrication, by the consumer, or by a third
party. Any change in the substance or form of tangible
personal property, so as to create a new article or
substantial change in an existing article of tangible
personal property, constitutes "production" or "fabrication."
(B) The price of the transaction is the entire amount charged
to the purchaser for such production or fabrication,
including charges for the cost of materials, labor, overhead,
and profit, pursuant to division (H) of section 5739.01 of
the Revised Code and rule 5703-9-26 of the Administrative
Code.
(C) A person engaged in production or fabrication of tangible
personal property for consideration is deemed to be
manufacturing for sale and subject to the provisions of rule
5703-9-21 of the Administrative Code.
Effective: 11-4-91
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5703.14, 5739.01
Prior effective dates: 10-7-47, 10-18-82