Did an installed electric refrigerator and range become realty when sold in place with a house, especially if their prices were not separately stated?

Plain-English summary

An electric refrigerator and electric range were installed in a house and sold in place with it.

Sales-tax counsel concluded that the appliances did not become part of the realty. They remained personal property, and tax applied to the price received for them.

The result did not depend on whether the appliance prices were separately stated from the house price.

Common questions

Did installation make the refrigerator and range real property?

No. The memorandum classified both as personal property.

Did tax apply when the appliance prices were bundled?

Yes. The lack of separately stated prices did not change taxability.

Citations and references

• No statute, regulation, or case was cited in the supporting memorandum.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/150-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/150-0160.pdf

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

150.0160
Sacramento, California
August 26, 1953
To:

San Jose – Auditing (RGS)

From:

Headquarters – Sales Tax Counsel (BH)

Re:

S--- & P---, Inc.
dba R--- R--XXXXX --- --- Road
---, California

This is in reply to your letters of June 25 and August 21.
An electric refrigerator and an electric range installed in a house do not become part of the realty but retain the character of personalty. Accordingly, upon a sale of the house, including the refrigerator and range in place, tax applies to the price received for the refrigerator and range. It is immaterial whether or no the price of the refrigerator and range is separately stated.

Bill Holden
BH:ja