Were stainless-steel sinks fixtures while countertops were materials?

Plain-English summary

Stainless-steel sinks fastened to wooden casework were fixtures. The letter corrected an earlier statement that had mistakenly called them materials. Countertops remained materials.

For fixtures manufactured by the contractor, hauling from the contractor's plant to the jobsite was excluded when setting the fixture market price, but inbound freight on materials used to manufacture the fixture was not deductible.

For a completed fixture purchased and resold under a lump-sum construction contract, plant-to-jobsite transportation was not included in the measure. The contractor's cost of the fixture controlled, including freight from the manufacturer to the contractor's place of business.

Common questions

How were sinks classified?

As fixtures.

How were countertops classified?

As materials.

Was all fixture freight excluded?

No. The result depended on whether the contractor manufactured the fixture, bought it complete, and where the freight occurred.

Citations and references

• Former Board Ruling 11 — fixture cost and transportation treatment applied in the letter
• November 10, 1961 prior letter — sink classification expressly corrected by this source

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/190-2200.pdf

Original ruling text

190.2200

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

December 4, 1961

G--- H--- S--- C--XXX --- ----- ---, X, California
Attention:

Mr. R. M. P---

-- - XXXXXX

Gentlemen:
It has been called to my attention that I mistakenly classified one item in my letter to you of November 10, 1961. Under Item 14, I said stainless steel sinks fastened to wooden casework are materials. We have consistently ruled that sinks of all types are fixtures and my statement in the letter to you was in error. Sinks are “fixtures”; however, counter tops also referred to under Item 14 are “materials.” In case you misunderstood my comments regarding transportation costs, I would like to point out that in stating transportation charges should be excluded in setting the market price of fixtures which you manufacture, I only was considering your costs of hauling the fixtures from your plant to the jobsite. Transportation charges for bringing the materials from which the fixture is manufactured to your plant may not be deducted. Also, where you purchase a completed fixture which you resell in a lump-sum construction contract, the transportation costs from plant to jobsite are not included under Ruling 11 in the measure of tax. The cost of the fixture to you is the measure of tax, but this does include freight charges connected with transporting the fixture from the manufacturer to your place of business. Very truly yours,

E. H. Stetson
Tax Counsel
By _______
John H. Knowles
JHK:o’b
cc:

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