Okla. Admin. Code § 710:65-19-47

Current through Vol. 42, No. 7, December 16, 2024

Section 710:65-19-47 - Retailers of clothing

(a) Persons who engage in the business of selling clothing to purchasers for use or consumption and not for resale must collect, report and remit sales tax when making such sales whether such clothing is sold as a stock or standard item or whether it is produced on special order for the purchaser. Suits, hats and other forms of clothing, when made on special order, serve substantially the same function as stock or standard clothing items that are sold.

(b) In computing sales tax liability on the sale of custom-made clothing, no deduction may be taken for the cost of labor involved in producting the finished item for sale. This is true whether such production labor is included in a lump sum price with the tangible personal property or whether such production labor is priced separately from the tangible personal property. The thing that is being sold is the finished item of clothing, and the cost of labor involved in making such item is no more deductible than is the cost of labor that is involved in producing a stock or standard item for sale.