Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
(e) INSTALLATION; REPAIRING
570.1280 Lumber. The use of lumber produced by a sawmill in the course of its operations but used in repair and additional construction by the mill at its own plant is a taxable use. If the logs from which the lumber was obtained were purchased in California presumably they were purchased for resale and resale certificates given. In that event the use of a portion of such lumber for repair and construction at the mill is a use other than for resale and tax for self-consumed property is payable. If the logs were purchased outside of California for cutting into lumber and partially used as above, that portion would be subject to use tax.
The measure of the tax is the purchase price to the sawmill of the portion of the logs from which the lumber used is cut. 1/14/53.