ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.188. Watch and Jewelry Repair Shops.
(1) Watch and jewelry repairmen render services in repairing, cleaning
or servicing articles which belong to other persons. They also engage in
the business of selling tangible personal property for use or consumption,
such as watches, clocks, watch cases, watch parts, etc.
(2) Where the watch or jewelry repairman renders nothing but a service,
sales tax does not apply to the transaction. In the cases where he furnishes
tangible personal property, such as the above mentioned, then sales tax
does apply to the full sales price of such tangible personal property without
deduction for labor or service charges. If the tangible personal property
is sold and the labor or services furnished in separate transactions, each
transaction being billed separately, then the tax applies to the sales
price of the tangible personal property and not to the labor or service.
(3) Materials and supplies used by watch and jewelry repairmen in rendering
services but which are not resold as merchandise are subject to sales tax
when purchased by the repairman from the supply dealer. (Section 40-23-1(a)(10))
(Readopted through APA effective October 1, 1982)
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