Was a person who placed a septic tank in its final hole a construction contractor?

Plain-English summary

A person who placed a septic tank in its final hole, with no further movement contemplated, was a construction contractor making an improvement to realty under Regulation 1521.

It did not matter that another person excavated the hole or later attached the leach lines. The Legal Department used a last-act test: final placement of the tank was enough to characterize the work as construction contracting.

The tank itself was classified as material rather than a fixture.

Common questions

Did the installer also have to connect the leach lines?

No.

Did the installer have to excavate the hole?

No.

How was the septic tank classified?

As material.

What fact controlled?

The installer placed the tank in its final resting place with no further movement planned.

Citations and references

• California Code of Regulations, title 18, section 1521 — construction-contractor and real-property-improvement rule applied in the 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/190-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/190-0870.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Robert Nunes

From:

Glenn L. Rigby

Subject:

Septic Tanks

190.0870

August 19, 1975

In our conversation of July 28, 1975, you asked our opinion as to whether or not a person who places the septic tank in its final resting place, i.e., the hole, with no further movement to be made of the tank may be regarded as a construction contractor, whether or not he attaches the leach lines to the septic tank. It is our opinion after reviewing the various annotations concerning construction contractors and the January 29, 1960 letter of Mr. P--- and discussing the matter with him that in the fact situation set forth above, the man placing the septic tank in its final resting place would be regarded as a construction contractor and therefore making an improvement to realty under Regulation 1521. The fact that someone else may attach the leach line to the septic tank or excavate the hole in which the septic tank is placed is immaterial. We basically look to the last act test in determining whether or not the man is or is not a construction contractor. You will also note that we regard such septic tanks materials rather than fixtures.

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