Were deep-well pumps furnished and installed at a federal game refuge improvements to realty?

Plain-English summary

A contractor furnished and installed five deep-well pumps at a government game refuge under a federal bureau contract.

The letter said Board precedent consistently treated deep-water well pumps as improvements to realty under section 6384 and cited Bell v. Bank of Perris in support.

It proposed treating the contractor as the consumer of the pumps. Because the matter remained a petition, the recommendation was scheduled for Board action unless the taxpayer timely requested a hearing.

Common questions

Were the deep-well pumps machinery and equipment?

No, under the proposed recommendation.

Who was treated as the consumer?

The contractor that furnished and installed the pumps.

Was the letter itself final Board action?

No.

Citations and references

• Cal. Rev. & Tax. Code section 6384 — federal real-property construction provision
• Bell v. Bank of Perris, 52 Cal.App.2d 66 — real-property authority cited by the letter

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/565-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/565-0500.pdf

Original ruling text

STATE OF CALIFORNIA

565.0500

STATE BOARD OF EQUALIZATION
May 24, 1965
Gentlemen:
We have considered your client's petition for redetermination in the light of information obtained by our auditors, information submitted by you, and information obtained at the preliminary hearing held in Hollywood on May 5, 1965. A review of our precedent indicates that deep water well pumps have consistently been regarded as improvements to realty under Section 6384 of the law. As pointed out at the preliminary hearing, we believe the case of Bell v. Bank of Perris, 52 Cal. App. 2d 66, supports our position. Accordingly, we propose to recommend to the Board that your client be considered the consumer of the five deep well pumps furnished and installed at the REDACTED TEXT refuge pursuant to a contract with the REDACTED TEXT bureau. Since you have not requested a Board hearing in this matter, it will be scheduled for action by the Board on the nonappearance calendar. However, if a Board hearing is desired, one should be requested in writing within 15 days of the date of this letter. Very truly yours Jack D. Paulson Associate Tax Counsel JDP:ls [lb]