(a) Morticians.      
        (1) The mortician is the consumer of all tangible personal property used, consumed, or furnished to the customer in rendering funeral services, regardless of whether or not a separate charge is stated for any such item. As the consumer, the mortician is required to pay the appropriate amount of tax at the time of purchase of all such tangible personal property used, consumed, or furnished in the performance of services.        
          (2) If a mortician sells caskets, boxes, vaults, or other individual items of tangible personal property separately from an agreement to render funeral services, the mortician becomes a retailer and is required to have a limited sales tax permit, and must collect and report the tax on the agreed price of all such tangible personal property sold. Resale certificates may be given in lieu of the tax at the time of purchase only on those individual items purchased for resale.          
            (b) Monument builders.            
              (1) Monument builders are contractors when they install memorials such as tombstones, vaults, and similar items. The provisions of §3.291 of this title (relating to Contractors) apply to their operations.              
                (2) When a monument builder sells a product and no installation is provided, the total charge for the product is taxable. In this instance the monument builder is a manufacturer making a retail sale of the manufactured product.               
     Source Note:        The provisions of this §3.304 adopted to be effective December 6, 1996, 21 TexReg 11501.