ARSD § 64:06:03:06 — Articles made to order

If manufacturers,
fabricators, or retailers agree for a fixed price to furnish material and
fabricate articles of tangible personal property for sale to a final user or
consumer, the total receipts from the sale of the articles are subject to the
sales tax. The manufacturers, fabricators or retailers may not deduct labor or
service costs of fabrication or production from the sales tax base even though
these charges may be billed separately to customers apart from charges for
materials.