Were large bronze fountain sculptures fixtures or construction materials?

Plain-English summary

Large bronze sculptures serving as center splash deflectors in decorative concrete fountains were materials rather than fixtures.

The sculptor completely manufactured the works in the shop, with sizes ranging from 9 by 4 by 4 feet to 32 by 13 by 11 feet and weights from 500 pounds to 3.5 tons. At the site, each sculpture was welded to a frame or bars embedded in concrete, and incorporated piping was connected to the water supply.

Because the fountains were improvements to realty and the sculptures were designed and installed as integral parts of them, the sculptor was taxed on the cost of materials used.

Common questions

Did shop fabrication make the sculpture a fixture?

No.

What facts supported material treatment?

Integration with the concrete fountain, embedded welded supports, and water-supply connections.

What was the tax measure?

The sculptor's cost of materials.

Citations and references

• Former Board Ruling 11 — materials classification and contractor-consumer measure 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/190-2120.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

San Francisco – Aud. (LC:REP)

From:

Tax Counsel (GAT)

190.2120

August 31, 1965

It is our understanding that taxpayer is a sculptor who performs contracts to design, manufacture, and install bronze sculptures which comprise center splash deflectors in large decorative water fountains. The work is performed under a lump-sum contract. The sculpture is attached to the base of the fountain by welding to a metal frame, reinforcing bars or bronze bars imbedded in concrete. Where piping is incorporated into the sculpture, it is connected to water supply piping. The sculptures range in size from 9 feet by 4 feet by 4 feet to 32 feet by 13 feet by 11 feet, and in weight from 500 pounds to 3-1/2 tons. They are completely manufactured in taxpayer’s shop by cutting and welding bronze according to a scale model. Inasmuch as the concrete fountains are improvements to realty and the sculptures are designed and installed as an integral part of such realty, it is our opinion that such sculptures constitute materials under Ruling 11. Accordingly, taxpayer is subject to tax measured by his cost of materials used.

GAT:sl

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