Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.0457


190.0457 In-Wall Bed. A taxpayer is a distributor of in-wall beds which it sells and installs on a lump-sum basis. The bed consists of three basic parts: a factory assembled frame, a box spring, and a mattress. The frame is made of steel with a plywood subpanel attached to the bottom of it along with an attached headboard and a system for raising and lowering the bed. The box spring is affixed by fitting it into slotted supports rising from the frame and fastening with screws at the four corners so that it will not move when the bed is placed in an upright position. The box spring has cloth straps permanently affixed in two or more places. The mattress is tied to the box spring by means of the cloth straps.

A wall-bed frame and box spring constructed and installed in this manner becomes an improvement to realty upon affixation to real property. The frame and box spring are fixtures within the meaning of Regulation 1521(a)(5) and Appendix B and the taxpayer owes sales tax on the sale of that fixture as provided in Regulation 1521(b)(2)(B). The unaffixed mattress, however, is considered tangible personal property such as furniture rather than a component part of a fixture. The taxpayer's gross receipts from the sale of the mattress are subject to sales tax. If the taxpayer bills in lump sum to furnish and install the complete bed frame, box spring, and mattress and also bills in lump sum to furnish and install only the frame and box spring, the gross receipts from the sale of the mattress would be the difference between these two lump-sum prices. 2/9/81.