Was a completed mosaic mural bolted to a wall a fixture or material?

Plain-English summary

A completed mosaic mural fabricated in an iron frame and then bolted to a building wall was a fixture. Covering the bolt openings with cement and specially prepared tile did not make the work integral and inseparable from the wall.

The completed product retained its identity as artwork accessory to the building. The artist was therefore the retailer of the finished mural furnished and installed under a lump-sum construction contract.

The result would differ if the artist applied tile piece by piece, or painted or drew the image directly on the building so that it became integral and inseparable. In that case, the artist would consume the materials.

Common questions

Did difficult or value-destroying removal make the mural material?

No. The memorandum focused on whether the completed artwork retained its identity after attachment.

How was a prefabricated bolted mural classified?

As a fixture.

How was a mural created directly on the wall classified?

As materials consumed in creating an integral part of the building.

Citations and references

• Former California Sales and Use Tax Ruling 11(c) — fixture-retailer treatment applied to completed mosaic murals furnished and installed under lump-sum construction contracts
• March 31 and April 27, 1967 San Jose District memoranda — requested advice on whether the taxpayer's installed mosaic murals were fixtures or materials; facts summarized and answered, but the memoranda are 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/190-1960.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

San Jose – District Principal Auditor

From:

Tax Counsel (EDM) - Headquarters

Subject:

G--- S--- G--Dba S--- G--- Ceramics
P. O. Box XXXX
---, California XXXXX

190.1960

May 17, 1967

SR --- XX XXXXXX

We regret our delay in replying to your memoranda of March 31, 1967, and April 27, 1967, in which you ask our opinion on whether certain mosaic tile murals should be considered as fixtures or materials when furnished and installed under a lumpsum construction contract. It is our understanding that the above named taxpayer purchases certain tile which he uses in fabricating a mosaic tile mural. The mosaic picture is made by inlaying small pieces of tile together in grouped patterns. The tile is processed and delicately colored by the taxpayer, Mr. S--- G---. The mural (colored tile picture) is enclosed by an iron frame. It is then securely attached to the wall of a building by bolts. No bolt holes are made through pictures of figures or other important items. The mosaic is unfinished as to the openings for the bolts, which are inserted into the wall through these openings. After the picture is fastened to the wall, the bolt holes cannot be seen since they are covered over with cement and inlaid with specially prepared tile. By using this special type tile, the smooth flow of the picture is not interrupted. The taxpayer claims that although he has not as yet had to remove a picture from a wall, to do so would destroy not only the value of the picture, but also the flow of colored tile, which would have to be replaced to repair the bolt holes. He also claims that the matching of tile colors for this purpose would be insurmountable. If the taxpayer created the art item (mosaic tile mural) by applying the small items of tile piece by piece to a wall or other part of the building, or by painting or drawing it upon the wall so that it becomes an integral or inseparable part of the building, he would be the consumer of the materials used, and tax would apply to the cost of his materials.

San Jose – District Principal Auditor
(G--- S--- G--- – SR --- XX XXXXXX

-2-

May 17, 1967
190.1960

On the other hand, if the taxpayer creates the complete art item and then attaches it to a wall or other part of the building by means of bolts in a manner not making it an integral or inseparable part of the building, we believe that the taxpayer is a retailer of his finished art work. Inasmuch as the completed product does not lose its identity as an item of property accessory to the wall of the building, it becomes a “fixture” upon emplacement. The latter view appears to be an accurate description of the subject taxpayer’s business activity. Accordingly, we are of the opinion that the taxpayer is a retailer of the completed mosaic tile murals (i.e., “fixtures”) which it furnishes and installs under lump-sum construction contracts. (See sales and use tax ruling 11(c).)

EDM:cb