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

The court today holds that the sales tax statute does not permit taxation on alteration services performed by a retail clothing store because the alterations are separable from the purchase of the garment. According to the court's holding, the alterations are separable from the purchase transaction regardless of when the alterations are performed on the garments.

In my opinion, alterations performed in connection with the sale of a garment and completed prior to a customer taking possession of the garment are part of the same purchase transaction and therefore, should be subject to the sales…