Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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435.0000 PRODUCING, FABRICATING AND PROCESSING PROPERTY FURNISHED BY CONSUMERS—GENERAL RULES—Regulation 1526

Annotation 435.0240

(b) REPAIRING, RECONDITIONING AND INSTALLATION DISTINGUISHED

435.0240 Bodies and Chassis. Sales tax applies to charges for installing bodies, new or used, on new chassis. Even if the chassis is furnished by the customers, the operation is a "sale" as defined by Revenue and Taxation Code section 6006(b), and the charge for the operation is subject to tax.

However, changing an old body from one old chassis to another old chassis is a repair operation and tax applies as provided in Regulation 1546.

Tax applies to the entire charge for placing a body on a new chassis including the cost of straightening dents, painting, etc. These are a part of the processing operation and are taxable according to the provisions of section 6006(b). For the same reason, tax applies to charges for painting the cab of a new chassis. However, tax does not apply to the single or lump-sum charge for painting an old or used body and chassis. If the painter furnishes the paint, tax applies to the cost of the paint to him.

Tax does not apply to charges for the labor of narrowing a used cab provided the operation is merely an alteration of the shape of the cab and does not result in a substantial change in form and kind. 8/15/51; 10/2/85; 6/10/75; 4/17/86.