Were extra charges taxable for adding heel inserts, changing heels, or stretching men's shoes?

Plain-English summary

When a customer bought new men's shoes and paid an extra charge for metal or plastic heel inserts, substituting rubber heels for leather heels, or stretching the shoes, the added work was taxable fabrication.

The letter distinguished shoes that were no longer new. Replacing worn soles or heels was a repair operation, with the source referring its tax treatment to Sales Tax Ruling 33 rather than reproducing that rule.

The same letter also applied Business Taxes General Bulletin 66-17 to alterations of new men's clothing, including cuffs, shirt sleeves, and dressing gowns. The shoe holding, however, turned on the new-property fabrication versus used-property repair distinction.

Citations and references

• California Business Taxes General Bulletin 66-17 (as cited)
• California Sales Tax Ruling 33 (as cited)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/435-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/435-0420.pdf

Original ruling text

435.0420

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 25, 1966
R--- K---, Ltd.
General Offices
No. X --- Street
--- ---, CA XXXXX
Attention:

SY BH XX-XXXXXX

Mr. S--- D---

Gentlemen:
This is in reply to your letter of August 4, 1966.
It was our understanding from your letter of July 8 that the matter of the application of sales tax with respect to alteration charges had been cleared up. However, inasmuch as it has not, we will cover your specific inquiries. Business Taxes General Bulletin 66-17 applies to charges for alterations on new men’s clothing. It does not apply to charges for alterations to new women’s clothing. Under the bulletin, charges for putting cuffs on new uncuffed trousers are subject to sales tax. Since this bulletin concerns the application of tax to men’s clothing, charges for shortening sleeves on new men’s shirts and altering new men’s dressing gowns are subject to sales tax. You also inquired as to whether charges for “repairing men’s shoes” are subject to sales tax. If the shoes are new, and the customer requests the addition of metal or plastic heel inserts, replacing of rubber heels for leather heels or stretching of the shoes, such addition, replacing or processing would constitute fabrication and, if an addition charge were made therefore, it would be subject to sales tax. If, on the other hand, the shoes are not new, replacement of worn soles, heels, etc., would be repair operations and the tax would apply as indicated in sales tax ruling 33, copy enclosed. Very truly yours,

George A. Trigueros
Associate Tax Counsel
GAT:mm
Enclosure
cc:
--- --- – District Administrator