Were manufacturer-installed metal windows and doors materials, and what tax measure applied?

Plain-English summary

Metal windows and doors were classified as millwork and therefore as materials under former Board Ruling 11.

The manufacturer-contractor consumed those materials in fulfilling its lump-sum construction contracts. Tax applied to the sale price of the raw materials from which it fabricated the windows and doors. If those inputs were purchased tax-free, their cost was reported as self-consumed merchandise.

Common questions

Were the metal windows and doors fixtures?

No. The letter classified them as millwork materials.

What was the manufacturer-contractor's tax measure?

Its cost of the raw materials used to fabricate them.

Does the supporting letter discuss fencing or carpeting?

No, despite their appearance in the published annotation title.

Citations and references

• Former California Sales and Use Tax Ruling 11, including "Materials used by Contractors" — millwork definition, contractor-consumer rule, and raw-material tax measure for contractor-fabricated materials applied; a copy was identified as enclosed but is not reproduced in the official PDF
• April 13, 1950 requester letter — lump-sum contracts to furnish and install self-manufactured metal windows and doors identified as the inquiry answered; 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/190-1580.pdf

Original ruling text

190.1580

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 20, 1950

F--- S--- W---, Inc.
XXX --- ----- --- X, California
Attention:

Mr. R--- W. D---

Account Cert-U XXX

Gentlemen:
This is in answer to your letter of April 13 with respect to the application of the State sales tax to your lump-sum contracts for the furnishing and installation of metal window and doors which are manufactured by you. The application of the tax to construction contractors generally is governed by Sales and Use Tax Ruling 11, copy enclosed. As therein indicated, millwork is specifically defined as a “material.” As metal doors and windows are classified as millwork, they also are regarded as “materials.” As indicated by that section of said Ruling 11, entitled “Materials used by Contractors,” construction contractors are regarded as the consumers of materials used by them in fulfilling construction contracts, and the tax applies to the sale of such materials to the contractors. Where the materials are fabricated by the contractor, as in the case of millwork, the tax applies to the sale of the raw materials to the contractor from which the materials are fabricated. Therefore, the tax will apply to the sales price of the raw materials to you from which your steel doors and windows are fabricated when you consume such materials in fulfilling a construction contract. Assuming that you have purchased such raw materials on a “tax-free” basis, you should report the cost price thereof on Line 2 of your sales and use tax return as self-consumed merchandise purchased without the payment of the California sales and use tax. Very truly yours,

R. G. Hamlin
Associate Tax Counsel

RGH:HD
cc:

Burnett Sheehan