When was an electric-clock repairer the retailer rather than the consumer of replacement parts?

Plain-English summary

California concluded that electric-clock repairs should follow the same repair-parts rule as other tangible personal property rather than an older clock-specific rule.

The repairer was the retailer of parts and materials when their retail value exceeded ten percent of the total charge or when the repairer separately charged for them. The source memorandum specifically corrected the older position because it had been written before the ten-percent rule.

Common questions

Were electric-clock repairers always parts retailers?

No.

What threshold did California apply?

Parts worth more than ten percent of the total repair charge.

What if the repairer separately charged for parts?

The official annotation treats the repairer as their retailer.

Citations and references

• California Code of Regulations, title 18, Regulation 1546

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/315-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/315-0480.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Gary Jugum

From:

Glenn L. Rigby

Subject:

Electric Clock Repairs

315.0480

Date:

January 5, 1977

In our discussion of January 3, the question was raised as to whether or not Annotation 315.0480 sets forth the present thinking as to the application of sales tax to repairs of electric clocks. As was pointed out, the Annotation states such repairs are retailers of the parts furnished without regard to the guidelines as set forth for general repairs in 1546. My reading of the backup letter to the above referenced Annotation discloses the letter was written prior to the time we had a 10% rule as outlined in the Regulation. Since I cannot see any reason for treating clock repairs any different than any other general repairs of tangible personal property, it is my opinion electric clock repairs should only be regarded as the retailer of the parts they use if the retail value of the parts exceeds 10% of the total charge.

GLR: po