Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 565.0730


565.0730 Gas Turbine Generators. Gas turbine generators, which were designed to provide power for the launch site during a lift-off of rockets at Vandenburg Air Force Base, are skid mounted and bolted to the floor of a specially made building. The units can be readily removed with a crane.

In the case of C. R. Fedrick v. State Board of Equalization (1988) 204 Cal.App.3d 252, the court concluded that compressors bolted to concrete foundations were fixtures even though they could be easily disassembled and removed. The court also gave consideration to the fact that although they could be moved, they were not actually relocated often.

In this case, the generators were constructed to adapt to the use and purpose of the realty. The generators qualify as fixtures. Accordingly, the U.S. government construction contractor is the consumer of the generators and sales of the units to the contractor are subject to sales tax. 9/18/91.