Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
355.0000 MISCELLANEOUS REPAIR OPERATIONS—Regulation 1553
355.0075 Watch Repair—Furnishing of Bezels. A repairman of watch cases for jewelers, located both inside and outside of California, makes bezels that are sold to the jewelers at wholesale prices. Sales tax applies as follows:
(1) The watch repairman replaces the bezel. Tax applies to the sale of the bezel to the repairman or the cost of the part(s) or raw materials used to make the bezel. This is true whether or not the jeweler or the watch owner is located inside or outside the state. No tax applies to the repairman's charge for the repairs nor to the charge that the jeweler makes to his customer.
(2) The watch repairman sells bezels to other repairman in California. Sales tax applies to the amount charged when a bezel is sold at retail to a person in California.
(3) The watch repairman sells bezels to other repairman located outside California. No tax applies when the bezel is sold to a person outside California when the contract of sale requires delivery of the bezel outside the state and it is actually shipped outside California. 6/21/90.