Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales And Use Tax Court Decisions

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C. R. Fedrick, Inc. v. State Board of Equalization . . . (1988)

Pipes, Tank Settings, and Compressors Were Taxable Materials and Fixtures when Installed on U.S. Government Property

Taxpayer purchased pipes, tank settings, and compressor facilities and installed them as part of a gas transmission facility on U.S. Government property. Taxpayer contended the items were exempt sales of machinery and equipment to the U.S. Government. The Board contended the items were improvements to realty, and that the contract was a construction contract under Sales and Use Tax Regulation 1521.

The court of appeal held in favor of the Board, finding that the items were materials and fixtures, and that the Board correctly regarded the contractor as the consumer when it performed a construction project for the U.S. Government. The manner of attachment of the items was that used for fixtures, the facilities constructed were adapted to the use of the realty, and the probability of frequent relocation was low. C. R. Fedrick, Inc. v. State Board of Equalization (1988) 204 Cal.App.3d 252.