Ezel / Tax Rulings / CA

Was a steel fabricator the retailer of masonry steel installed by another contractor?

Short answer Yes. Delivering masonry steel did not make the fabricator its consumer when the masonry contractor placed and cemented it in the walls, even though the fabricator later tied reinforcing bars to it.
State
CA
Ruling
Annotation 190.0960
Tax type
Sales and Use Tax
Issued
1967-12-21
Issued by
California State Board of Equalization
Requested by
San Bernardino District Administration
Topics
steel fabrication construction contractors retail sales final installation
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1967. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1967
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This December 21, 1967 internal memorandum distinguishes masonry steel delivered by a fabricator but installed and cemented into block walls by a masonry contractor from reinforcing bars the fabricator later tied to the installed steel. The result turned on which party performed final installation. Current steel scopes require review of each party's furnishing and placement obligations under current law.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The steel fabricator was the retailer of masonry steel that it delivered to the jobsite but did not place in its final position. The masonry contractor installed the steel vertically within block walls and cemented it in place.

The result did not change because the steel fabricator later tied reinforcing bars to the ends of the installed masonry steel. The fabricator could be the consumer of those reinforcing bars while remaining the retailer of the separately installed masonry steel.

Common questions

Did delivery to the jobsite make the fabricator the consumer?

No.

Who performed final installation of the masonry steel?

The masonry contractor, which positioned and cemented it into the walls.

How were the later reinforcing bars treated?

The memorandum said the fabricator could be their consumer when it tied them to the installed masonry steel.

Citations and references

  • October 4, 1967 Tax Counsel letter concerning reinforcing bars in tilt-up walls — enclosed and relied upon by the memorandum

Source

Original ruling text

State of California

Board of Equalization
Legal Division

Memorandum

To:

San Bernardino – District Admin. (BL)

From:

Tax Counsel (GAT)

190.0960
Date:

December 21, 1967

Pursuant to your request of December 19, we enclose a copy of our letter of October 4, 1967 regarding the application of tax with respect to reinforcing bars used in the construction of tilt-up walls. As indicated in our telephone conversation, it is our opinion that where a steel fabricator delivers masonry steel to a jobsite and the masonry steel is both installed within the block walls in a vertical position and cemented in by the masonry contractor, the steel fabricator is the retailer of the masonry steel, notwithstanding the fact that he is the consumer of the reinforcing bars which he subsequently ties to ends of the masonry steel.

GAT:ph

[1b]

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