A.D. Store Co. v. Executive Director of DePartment of Revenue

We accepted certiorari in this case to address the imposition of sales tax on alteration services performed by a retail clothing store. We conclude that the alterations are not © taxable under the applicable statute, and therefore reverse the court of appeals.

I

A.D. Store Company, Inc. d/b/a Auer's operates a specialty retail women's clothing store in the Cherry Creek North area of Denver, Colorado. Auer's sells only fully manufactured, not custom-tailored, clothing, and also offers alteration services on those garments. Auer's had a practice of separately noting the price of the alteration…