Ezel / Tax Rulings / CA

Was rebuilding a customer battery taxable when only the case, cell jars, and covers were reused and all internal materials were new?

Short answer Yes. The extensive rebuilding created an essentially new battery rather than repairing the old one, so both materials and labor were taxable.
State
CA
Ruling
Annotation 435.1340
Tax type
Sales and Use Tax
Issued
1953-06-25
Issued by
California State Board of Equalization
Requested by
A battery business asking about charges for rebuilding customer-owned batteries with nearly all new internal materials
Topics
batteries rebuilding insulation fabrication labor repair labor
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1953. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1953
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a California State Board of Equalization junior-counsel letter dated June 25, 1953, published by CDTFA as support for a sales and use tax annotation. It assumes only the old battery cases, cell jars, and covers were reused while plates, separators, insulation, and retention material were new. Another taxpayer should not treat it as binding and should check current battery, remanufacturing, repair, core-exchange, material, labor, and sales-and-use-tax rules. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A customer brought in old batteries, but the rebuilder installed new plates, separators, spun-glass insulation, and perforated-rubber retention. Only the wood or steel cases, rubber cell jars, and rubber covers were reused.

Rulings 15 and 26, as cited, distinguished taxable fabrication from exempt repair. Because the work created an essentially new battery rather than restoring the old one, both materials and labor were taxable.

Citations and references

  • California Sales and Use Tax Rulings 15 and 26 (as cited)

Source

Original ruling text

435.1340

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

June 25, 1953

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

Your letter of March 27
Account No. X--------------

Gentlemen:
You inquire concerning the application of sales tax to your charges for rebuilding batteries. A customer brings to you his old batteries. You install all new material in the batteries, including plates, separators, spun glass insulation, and perforated rubber retention. The only parts of the old batteries which are reused are the wood or steel cases, rubber cell jars and rubber covers. As indicated in Sales and Use Tax Rulings 15 and 26 (copies enclosed), charges for fabrication labor are subject to the tax while charges for repair labor are exempt. Fabrication is the creation of an essentially new item and repair is the restoration of property to its original condition. It is our opinion that your rebuilding of batteries is the creation of a new battery rather than the repair of an old battery. Accordingly, your charges for both materials and labor are subject to the tax. Yours very truly,

Bill Holden
Junior Counsel
BH: ja
cc: Pasadena - Auditing

What does the law say today, for your facts?

This ruling is from 1953. Ezel checks current California tax law against your situation and cites the authority it relies on.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace