Were window frames and screens materials sold to contractor-consumers, and how did vendors show tax reimbursement?

Plain-English summary

Window frames and window screens were materials under former Board Ruling 11. Contractors and subcontractors using them in construction contracts were consumers, so tax applied to the vendor's sale of the materials to those contractors.

The noninstalling vendor also had to show separately on every bid and sales invoice the amount included in the total price as sales-tax reimbursement.

Common questions

Were window frames and screens fixtures?

No. The letter classified them as materials.

Who was the consumer?

The contractor or subcontractor using them in a construction contract.

Did the result assume the vendor installed the products?

No. The letter expressly assumed the vendor did not place or install them.

Citations and references

• Former California Sales and Use Tax Ruling 11 — contractor-consumer and window-frame and screen materials classifications applied
• Former California Sales and Use Tax Ruling 80 — separate disclosure of included sales-tax reimbursement on offered and completed sale prices applied
• October 16, 1951 accounting-firm letter — asked how sales tax should be handled on bids and invoices for window frames and screens sold to contractors and subcontractors; request answered but not reproduced in the official PDF
• Enclosed copies of former Sales and Use Tax Rulings 11 and 80 — identified as enclosures; 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/190-2400.pdf

Original ruling text

190.2400

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 21, 1951

Mr. L--- M. K--Certified Public Accountant
XXXX South --- Avenue
--- --- XX, California

Dear Mr. K---:
This is in reply to your letter dated October 16, 1951, in which you ask how the sales tax should be handled on bids and subsequent sales invoices for the selling of window frames and window screens to contractors and subcontractors. For your convenience, we are enclosing a copy of Sales and Use Tax Ruling 11. Pursuant to this ruling, contractors are the consumers of materials used by them in fulfilling construction contracts and the tax applies to the sale of such materials to the contractors; window frames and window screens being materials under this ruling. Sales and Use Tax Ruling 80, copy enclosed, provides that each retailer, in the manner herein required, must indicate separately in the prices for which tangible personal property is sold or offered for sale, the amounts included in such prices which represent reimbursement of the sales tax imposed on the retailer. Accordingly, every bid and sales invoice in question must show separately the amount of tax reimbursement which has been included in the total price. It is assumed that your client is a vendor and does not also undertake to place or install the window frames and screens. Very truly yours,

E. H. Stetson
Tax Counsel

RMH:ja
cc:

Wm. R. Thomson