Which parts of a cemetery's charge for a fabricated grave box and burial services were subject to California sales tax?

Plain-English summary

When a cemetery fabricated a grave box and placed it in the grave, sales tax applied to the box charge, including the labor used to construct it.

Tax did not apply to separately identified charges for digging and closing the grave or placing the casket in the box.

The same letter said marker and setting-material charges were taxable, separately charged marker-setting labor was not, and a lump-sum marker charge was fully taxable. Cutting, shaping, polishing, and lettering costs were not deductible from the taxable amount.

Source and live-annotation limits

The letter does not reproduce the February 27 request, identify the cemetery, or supply marker foundations, bronze markers, setting materials, grave boxes, fabrication, grave digging and closing, casket placement, charges, invoices, material purchases, tax returns, audit, assessment, completed transactions, or later outcome. Former Ruling 43 was described as enclosed but is absent. The source prints “setting then”; that defect remains in the original text.

The live annotation preserves only the taxable grave-box/fabrication-labor rule and exclusions for digging, closing, and casket placement. It omits the February 27 request, marker and foundation facts, separately charged setting-labor rule, lump-sum rule, no-deduction items, Ruling 43, missing records and enclosure, source defect, copied compliance office, and later-outcome gap.

What this means for you

Cemeteries, memorial dealers, and tax professionals

Document each fabricated item and material, every service step, and whether setting and burial services are separately stated. Preserve the invoice and purchase records supporting any allocation instead of assuming a lump-sum charge receives the same treatment.

Common questions

Was grave-box fabrication labor excluded as labor?

No. It was included in the taxable box charge.

Which burial services were excluded?

Digging and closing the grave and placing the casket in the box.

Why did separate invoicing matter for marker setting?

The letter excluded an additional labor charge but taxed the entire amount when the charge was lumped together.

Citations and references

• Historical Sales and Use Tax Ruling 43, “Memorial Dealers” — marker, setting, and grave-box treatment applied
• The official source cites no statute by number.
• February 27 request, markers, foundations, materials, grave boxes, charges, and cemetery transactions — described or referenced but not included

Verbatim support

From the official April 3, 1956 letter:

The tax applies to the charge for the boxes including the fabrication labor in constructing them.

The tax does not apply to charges for digging and closing the grave, and placing the casket in the box.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/370-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/370-0080.pdf

Original ruling text

370.0080

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 3, 1956

Attention: Office Manager
Gentlemen:
By way of answer to your letter of February 27, we are enclosing a copy of sales and use tax Ruling 43, “Memorial Dealers”. We believe that this ruling covers the matter of foundations for bronze markers. See the first paragraph of the ruling. As the retailer of the markers and materials used in setting then in the cemetery, you should pay the sales tax on the amount charged for the marker and materials. You will note that an additional charge for labor of setting the marker is not taxable but that if a lump sum charge is made the tax applies to the entire amount charged. Note also that there can be no deduction taken on account of charges for cutting, shaping, polishing or lettering the material. With respect to grave boxes, it appears that you fabricate these boxes and place them in the grave. The tax applies to the charge for the boxes including the fabrication labor in constructing them. The tax does not apply to charges for digging and closing the grave, and placing the casket in the box.

Very truly yours,

E. H. Stetson
Tax Counsel

EHS:ds
cc: Oakland - Compliance