Were charges taxable for mounting transparencies in cardboard, and could separately stated developing charges be excluded?

Plain-English summary

Mounting color transparencies in cardboard was taxable fabrication or processing under section 6006(c) and Ruling 15.

Ruling 23 did not tax separately stated charges for developing negatives. By analogy, developing charges connected with mounted transparencies had to be separately stated to be excluded; otherwise they remained in the taxable measure with the mounting charge.

Citations and references

• California Revenue and Taxation Code section 6006(c) (as cited)
• California Sales and Use Tax Rulings 15 and 23 (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/435-1100.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. X--------------- (HHW)

From:

E. H. Stetson

Subject:

Ansco Color Transparencies

435.1100

Date:

May 31, 1951

In answer to your memo of December 28, 1950, we advise that in our opinion the operation of mounting transparencies in cardboard mounts results in a sale with respect to which the tax applies. Under Section 6006(c) and ruling 15 we believe that the mounting of the transparencies must be considered a fabrication of processing of tangible personal property. If a separate charge is made for developing only, the tax does not apply to the charge for developing pursuant to ruling 23 which provides that the tax applies to charges for printing pictures or making enlargements from negatives furnished by the customer “but not to charges for developing the negatives if such charges are separately stated”. It would appear to follow that where instead of printing or enlarging, the transparencies are mounted on cardboard, the charge for developing must be separately stated in order to be excluded from the measure of the tax.

EHS:ph