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Forums > Ask the ISSFA Leadership Team - > Questions, Answers and Conversations
Subject: Sales Tax Grey area

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RADAMS (guest)
01/16/2008 4:43 PM Quote Reply Alert 

This is pertinent to California first and foremost but will probably affect everyone, I am in the process of going through an audit for sales tax and I am having some difficulty getting a definitive answer to the question of when is labor taxable. I want to have the correct info before the audit next week!

As I have practiced over the years:

material is taxable

Installation labor is not.

Fabrication Labor is taxable only when we do not do the install, ie, the customer picks up a vanity. Then we tax the full amount.

I have seen a letter going out to fabricators who do not hold a resale licence from the BOE explaining that fabrication labor IS taxable and they should hold a licence.

Any feedback would be greatly appreciated.

Ross Adams (President)

Superior Surfaces, Inc, Santa Clara, Ca

C. Mather Co., Inc. Tom Mather
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Posts:87
01/19/2008 9:56 AM Quote Reply Alert 
Ross,
In our state, installation in an owner-occupied house is not taxable. All others are (rent, commercial, etc.). Service calls, such as resands, repairs, etc. are always taxed. The finished product, pre installation is always taxed.

The big question here is - how can the Big Boxes get away without putting a sales tax charge on anything (cabinet or countertop related).
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