Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales And Use Tax Court Decisions
Modern Paint & Body Supply, Inc. v. State Board of Equalization . . . (2001)
Taxpayer sold supplies such as sandpaper, masking tape, and paint thinner to auto repair shops for use during repairs. Taxpayer did not report sales tax on its sales of such supplies, contending that the sales were for resale, citing in support that some of the repair shops invoiced their customers a separate line item for "paints and materials" which was intended to cover the costs of paints and supplies used and consumed in the repair process. The court noted that the repair shops did not furnish the supplies to their customers, and thus concluded that they consumed the supplies in the process of making the repairs and did not purchase the supplies for resale. Modern Paint & Body Supply, Inc. v. State Board of Equalization (2001) 87 Cal.App.4th 703.