Help Me Hank: Sewer's sales tax

What did you wear this Halloween? Were you ghoulish, or adorable? Maybe you made your own costume. Karen used to make them for her kids when they were young. And still she enjoys making clothes on special occasions -- now they're for her.

Karen Godin, Sewer
“I made this.”

And with a Caribbean vacation coming, Karen needed a skirt and decided to make her own. She went to the fabric store and found the perfect satin.

Karen Godin, Sewer
“It was the right color, and it was the right texture.”

She only needed one yard, but when she went to pay the clerk included sales tax in the purchase. Karen thought -- that's wrong.

Karen Godin, Sewer
“I used to work at a fabric store.”

So she asked, why the tax? The store said the fabric is special for Halloween and therefore the 5-percent tax should be applied. Karen said forget it and came home without the fabric.

Karen Godin, Sewer
“I thought, well, ‘Help Me Hank.’”

Just to confirm, we asked Karen to go back and buy the fabric and look at the receipt, she was charged the 5-percent sales tax. But we know the Department of Revenue has rules about these things. Massachusetts law says "cloth made up of natural or synthetic fibers and used for clothing purposes" is exempt from tax.

Huh? Ok, here's, the scoop. According to the Department of Revenue, if you're buying fabric to make a dress or a shirt or any kind of clothing there's no tax on that, even if you want to use it to make a costume. That's considered clothes.

There is potential for confusion though. This kind of fabric, the heavy tapestries, and twills and brocades, if it's used for upholstery and draperies, that's taxable. But if you're using the same material to make clothes no tax would apply. Hey. We don't make the rules, we just explain them.

So we contacted the store where Karen bought her satin, and they said they would give her a refund, and didn't mean to skirt the law. And here's her creation, now tax free and also educational.

Karen Godin, Sewer
“I hope that people will learn.”

Hank Phillippi Ryan, Investigative Reporter

“So, it seems to be the best idea that if you're making clothing, make sure you tell that to the fabric store.”

(Copyright (c) 2007 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)