WPCw s+ڰܜ^Dr C6?+ܼִ?o= P \hcYGʻK8HPy ]+}k27şߚ#A)]1IND3 ot]t +_aY3l]'cV,M7V al^Z$Fy5 ПŁ-a] B;FkzD,n jmYT$0a' Q _?hTΥKw 3ڣ<92M*7đihUx.43pm(KX'* v]-\jQsh Td C|`=lnB]+>>5LN-՗YE*USA+۲`S'4G/gYӌZ&fH=Pꋽ1a)?bG/xW_at}FeL9Ɗ8c'kUN %( 0:.#h z)  bq 72y UN w ^ 4 0V s U@  m  0 a 1u(9 Z6Times New Roman RegularX($USUS.,\\ALBPRINTB9\CO9200180D:\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\BUDGET~1\REGULA~1.WPTD:\Corel\WordPerfect Office 2000\Template\Custom WP Templates\Budget, Business\Regulation Template.wpt- -ji)6Times New Roman RegularSzh,s pU,.wp̜(.3$ !USUS.,  3|x(   Z(Times New Roman U1, 2, 3,Level 1Level 2Level 3Level 4Level 5(9f$Section2#  0  .3  Ԁ3#37=CIQYag1.a.i.(1)(a)(i)1)a) !USUS.,  _XX  8 $ XXdd8  Ӏ@"STATEOFNEWYORK  @ DEPARTMENTOFTAXATIONANDFINANCE  @ COMMISSIONEROFTAXATIONANDFINANCE ` @"ALBANY,NEWYORK 8      PursuanttotheauthoritycontainedinsubdivisionFirstofsection171,subdivisions(1)and(8)ofsection  8  1142,andsection1250(notsubdivided)oftheTaxLaw,theCommissionerofTaxationandFinance,atanopen   meetingheldonevendatewiththesigningofthisproposal,herebyproposestomakeandadoptthefollowing   amendmentstotheSalesandUseTaxRegulations,aspublishedin_Subchapter_ԀAofChapterIVofTitle20ofthe p OfficialCompilationofCodes,RulesandRegulationsoftheStateofNewYork,suchamendmentstoreadas H follows:  p   Section1.Subdivision(b)ofsection527.4oftheregulationsisamendedtoreadasfollows: H   (b) Producing.Producingmeansthemanufactureofaproductfromoneormorerawmaterialsandany   processinwhicharaw[materials]materiallosesitsidentitywhentheproductionprocessiscompleted.  8  Example1:Anindividualpurchasestweedclothfromaretailtextilestore[for]andhasatailor  [to]makeasuitfor[him]theindividualtowear.Thetailorschargefortheserviceofmakingthe X  suitistaxable.0" (#(# 8  Example2:[Anindividual]A_corporation_purchaseslumberfromamillandhasthelumbertaken $X" toacabinetmaker[construct]whousesthelumbertobuildabookcasefor[him]useinitscorporate %0!$ offices.The[constructionof]cabinetmakerschargetobuildthebookcaseistaxable.'#&(#(# Z j(#33j! !"`f"    `f Section2#  2  .3  Ԁ  ݀Example1insubdivision(c)ofsection527.4oftheregulationsisREPEALED,andsubdivision )$( (c)isfurtheramendedtoreadasfollows:`f C ݌ h+&* Ќ   @-(,   (_c_) Fabricating.Fabricatingisthealterationormodificationoftangiblepersonalpropertytothe d specificationsofthe[owner]purchaseroftheservice,withoutchangingtheidentityoftheproperty.However, < alterationstoclothingdonotconstitutefabricating;rathertheyconstitutetailoringservicesandareexcludedfrom   tax.(Seesection527.5(b)(3)ofthisPart.)   8  Example1:Anindividual_purchases_Ԁsheetmetalfromasupplierandtakesthesheetmetaltoa  ` metalshoptobecut,perforated,andbenttotheindividualsspecifications,fortheindividualsown 8  use.Themetalshopschargefortheseservicesistaxable.t (#(# 8  Example2:Alumberyardchargesa[customer]corporationforcutting4_foot_by8foot[plywood] L  sheetsofplywoodinto2footby2foot[plywood]squares.Theplywoodhadbeenpurchasedforthe $ purchasersownuse.Thelumberyardschargeforthecuttingservices[are]istaxable.(Ifthe  lumberyardsoldtheplywoodtothecorporationandcutitintosquaresatthetimeofsale,thenits p chargetocuttheplywoodistaxableaspartofthesaleoftangiblepersonalproperty,pursuantto H paragraph(4)ofsubdivision(a)ofthissection.) (#(#   "`f"  `f6Section2#  3  .3  Ԁ  _Paragraph_Ԁ(3)ofsubdivision(b)ofsection527.5oftheregulationsisamendedtoreadasfollows:`f6c݌ \ Ќ    (3)Taxisnotimposedontheservicesoflaundering,drycleaning,tailoring,weaving,pressing,shoe 4  repairing,andshoeshining.[Seesection527.4(b)(c)ofthisPartfortheapplicationoftaxonnewclothing.]For  " example,alterationstoclothing,althoughconsideredtobemaintaining,servicing,orrepairingproperty,are #  excludedfromtaxbecausetheyaretailoring.Thiswouldincludetailoringperformedeitherbyanindependenttailor %X" orseamstress,orbyatailororseamstressemployedbythevendoroftheclothingsolongasthevendorscharge '0!$ forthetailoringisreasonableandseparatelystatedfromthechargefortheclothingitself,andregardlessofwhether l)#& theclothingqualifiesfortheexemptionfromtaxundersection1115(a)(30)oftheTaxLaw.However,whena D+$( personprovidesrawmaterialstoatailororseamstressandthetailororseamstressproducesanarticleofclothing -&* fortheperson,thetailorsorseamstressworkconstitutestheproductionofclothing(whichisnottailoring);_and d the_ԀchargeforsuchservicewouldbesubjecttoStateandlocalsalesandusetax(seesection527.4(b)ofthisPart). < "`f"    `fSection2#  4  .3  Ԁ  X$XXXThisrulewilltakeeffectonthefirstdayofthefirstquarterlysalestaxreportingperiod   commencingafterthedatethattheNoticeofAdoptionispublishedintheStateRegister.#X$XXX$#`f5݌   Ќ       `     h     ________________________________ 8       `     h     ArthurJ.Roth $       `     h     CommissionerofTaxationandFinance t  Dated:Albany,NewYork 8    March12,2002 $