Which refrigeration-system components were fixtures and which were materials under the 1951 opinion?

Plain-English summary

Compressors, condensing units, and the evaporative condenser were fixtures. The installing contractor was their retailer and used the historical selling-price measure prescribed for installed fixtures.

Walk-in boxes constructed in the building were materials. The contractor consumed the lumber, insulation, and other inputs used to construct them. Tubing installed in conduits or laid in concrete was also material, with tax measured by the installing contractor's cost.

The source's closing note cross-references Annotation 190.0270 for the statement that walk-ins are generally fixtures, limiting how broadly this opinion's classification should be used.

Common questions

Which components were fixtures?

Compressors, condensing units, and the evaporative condenser.

Which components were materials?

The described built-in walk-in boxes and tubing installed in conduits or concrete.

Did the source contain a later qualification?

Yes. Its cross-reference says walk-ins are generally classified as fixtures.

Citations and references

• Former California Sales and Use Tax Ruling 11, including "Fixtures Furnished and Installed by Contractors" — component classification and tax measures applied; identified as enclosed, but the separate copy is not reproduced in the official PDF
• Annotation 190.0270 — cross-reference in the source concerning the general classification of walk-ins
• September 14, 1950 request letter — refrigeration-system components addressed after the letter had been misplaced; not reproduced in the official PDF

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/190-1400.pdf

Original ruling text

190.1400

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

March 16, 1951

--- --- ----- --- ----- --- --Dear Sir:
Through inadvertence your letter of September 14, 1950, was misplaced and went unanswered. Please accept our apologies. It appears that the walk-in boxes are properly regarded as “materials” within the meaning of sales and use taxes ruling 11, copy enclosed, in which case [A] as the contractor or subcontractor is the consumer of the lumber, insulation material, and other materials from which these boxes are constructed in the building. It is also our opinion that the contractor is the consumer of the tubing which is installed in conduits or laid in the concrete. Therefore, the tax applies with respect to the lumber, insulation material, and tubing upon the cost thereof to the installing contractor. It is properly reported as self consumed at cost by [A] unless that company has purchased it on a taxpaid basis. It appears that the compressors, condensing units, and evaporative condenser are properly regarded as “fixtures” within the meaning of ruling 11. Thus, the installing contractor is the retailer thereof and should return the tax upon the retail selling price as determined by the provisions of ruling 11 under the heading of “Fixtures Furnished and Installed by Contractors.” Very truly yours,

E. H. Stetson
Tax Counsel
EHS:ph
cc:

Mr. John B. Evans

See Annot. 190.0270 – walk-ins
generally classified as fixtures.