How did California tax a larger-screen conversion on a customer-owned television set versus a new set being sold?
Apply this to your situation
This page answers the general question as of 1950. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
For a customer-owned television set converted to a larger screen size, California treated the converter as the retailer of the parts and materials. If installation labor was separately stated, tax applied only to the retail selling price of those parts and materials.
If the business converted a new television set as part of selling that set, tax applied to the full charge for the converted television.
Common questions
What was taxable for a customer-owned television?
The retail selling price of parts and materials.
Was separately stated installation labor taxable?
No.
What about a new television converted as part of its sale?
The full charge was taxable.
Citations and references
- Historical Sales and Use Tax Ruling 26 (discussed but found inapplicable)
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/315-0860.pdf
Original ruling text
325.0860
STATE OF CALIFORNIA
STATE BOARD OF EQUALIZATION
January 12, 1950
S--- and R--XXX --- --- Street
--- --- XX, California
Gentlemen:
This is in answer to your letter for December 27 with respect to the application of State sales tax to a charge by your client for converting a television set owned by a customer to a larger screen size. It is our opinion that your client is the retailer of the parts and materials furnished in connection with the conversion of the customer’s television set to a larger screen size. Accordingly, if the charge for the labor of installing such parts and materials are separately stated, the tax will apply only to the retail selling price of such parts and materials. Paragraphs 2 and 3 of Sales and Use Tax Ruling 26, referred to in your letter, refer to specific types of repair operations and do not appear to be pertinent to the operations herein involved. If the conversion is to a new television set sold by your client and is a service rendered as a part of the sale of such set, the tax will apply to your client’s full charge for the converted set. Very truly yours,
R. G. Hamlin
Associate Tax Counsel
RGH:HB
Enclosures
cc:
Mr. Wm. R. Thomson
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