Based on the information you provide, the garments emerge from the process at the local manufacturer substantially different from their character when first acquired as tee shirts. Before processing, the tee shirts may have been suitable for outer-wear garments, but would ordinarily be expected to be used as underwear. After processing, the garments are suitable for use as fashion-wear outer garments. Although not dispositive, it is instructive that the process itself increases the value of the garments from their original value as tee shirts. By this measure, it is clear that a substantial transformation in the appearance and usefulness of the garments has taken place in the local manufacturer's plant.
Many cases are borderline cases, and to expect uniformity of conclusions is to expect too much.
I am, therefore, of the opinion that, under the preceding facts, the local commissioner of the revenue may determine that the activities of the local manufacturer constitute manufacturing and the inventory is not subject to the local merchants' capital tax. 5 Section 58.1 3509. Therefore, the fact that a corporation has an exemption from the Department of Taxation is not determinative of whether the corporation is a manufacturer for local taxation purposes. Va. Att'y Gen. 231, 233. 11 See Op.