Was replacement plate glass taxable when it was delivered and installed in San Francisco for an insurance company located in Missouri?

Plain-English summary

California confirmed that sales tax applied when a business replaced a plate-glass window in San Francisco for a Missouri insurance company. The insurer's lack of a California business location did not create an exemption.

The decisive fact was delivery. The glass was delivered in California, so the Board treated the sale as made in California. The installation also occurred in San Francisco.

The letter referred the requester to Ruling 55 for the proposition that an exempt out-of-state shipment required the retailer to ship the merchandise to a point outside California. The published source does not include the enclosed ruling.

Common questions

Did the customer's Missouri location exempt the sale?

No. The Board said the insurance company's out-of-state location supplied no basis for exemption.

Why did California tax the glass?

The glass was delivered and installed in California, so the sale occurred in California under the reasoning stated in the letter.

Would an out-of-state shipment have been different?

The letter said then-current Ruling 55 required the retailer to ship merchandise to an out-of-state point for exemption. The ruling itself is not part of this official source.

Citations and references

• Ruling 55, paragraphs A-1-(c) and A-2-(b), referenced but not reproduced in the official source

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/495-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/495-0660.pdf

Original ruling text

495.0660

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

March 7, 1955

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Attention:

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Gentlemen:
You replaced a plate glass window for a Missouri insurance company. The installation was made in San Francisco. The insurance company claims that sales tax is not applicable because it is located in Missouri and has no place of business in California. This is to confirm your understanding that the insurance company’s location in another state affords no basis for exemption. The glass was delivered in California and the sale was therefore made in California and the tax applies. We enclose a copy of Ruling 55 in paragraphs A-1-(c) and A-2-(b) of which it is pointed out that in order to be exempt, the retailer must ship the merchandise to an outof-state point. We enclose an extra copy of this letter and of Ruling 55 for your convenience in corresponding with the insurance company. Very truly yours,

Bill Holden
Assistant Counsel
BH:tj
cc:

San Francisco – Auditing