Were all receipts taxable for plastic-laminating consumers' membership cards and identification cards?

Plain-English summary

The entire gross receipts from plastic-laminating membership cards, identification cards, and similar items for consumers were taxable.

The memorandum acknowledged that the classification was close but treated the business as selling an item of tangible personal property rather than merely rendering a service.

It separately noted that tax on the taxpayer's engraving work depended on whether the property being engraved was new or used, without providing further facts or a complete engraving rule.

Citations and references

• No numbered statute or regulation was cited in the source memorandum.

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/435-1000.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

San Diego – Auditing (JHMcC)

From:

Headquarters – Sales Tax counsel (JJD)

Subject:

X------------------------

435.1000

Date:

April 1, 1958

It is our opinion that the charges made by the taxpayer in connection with his plastic laminating of membership cards, identification cards etc., should be considered as taxable sales, the entire gross receipts from which are subject to sales tax. Although this is a very close question, we believe that the taxpayer should be considered as selling an item of tangible personal property rather than rendering a service. The question of whether or not engraving done by the taxpayer is taxable fabrication depends, of course, on the new or used status of the property being engraved.

J. J. Delaney
JJD:ch