ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.98. Mattress Renovation.
(1) A mattress renovator both renders service and sells tangible personal
property where he rebuilds or renovates a mattress for his customer by
reworking the materials in the customer's mattress, the identity of which
is maintained throughout the operation, and by adding thereto whatever
new materials are required to complete the job in a satisfactory matter.
Under these circumstances, the mattress renovator may make separate contracts
to render the service required and to sell the tangible personal property
used (ticking, cotton, springs, tufts, etc.) in which case the receipts
from rendering service are not subject to sales tax where the invoice rendered
to the customer and the records of the renovator show separately sales
of tangible personal property and charges for performing services. Provided,
however, where work of this nature is done for a lump sum without separation
of charges for tangible personal property and for services, the sales tax
shall apply to the lump sum amount.
(2) In instances where the identity of the customer's mattress is not
preserved with the mattress delivered to the customer having been made
from whatever materials were available, the mattress returned to the customer
is considered a new article, the measure of the tax being the amount paid
by the customer including the value of the customer's old mattress. The
mattress renovator purchases at wholesale tax free the materials he uses
in renovating or rebuilding his customer's mattress. (Section 40-23-2(1))
(Readopted through APA effective October 1, 1982)
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