California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 5 - Installers, Repairers, Reconditioners › Section 1549 - Fur Repairers, Alterers and Remodelers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General. Repairers, alterers, and
				  remodelers of furs are retailers of the fur sold in connection with repairing,
				  altering, and remodeling of fur garments.
Fur repairers, alterers, and remodelers must segregate on
					 the invoices presented to their customers and in their records the fair retail
					 selling price of the fur furnished by them, from the charges for the labor of
					 repairing, altering, or remodeling the fur garment. If the retailer does not
					 make a segregation of these charges, the retail selling price of the fur will
					 be determined by the Board based on information available to it.
The repairers, alterers, and remodelers are the consumers
					 of the thread, buttons, lining, and materials other than fur used in connection
					 with such repairing, altering, and remodeling unless a separate charge for such
					 property is made on the invoices to the customers at the fair retail selling
					 price, in which case they are the retailers of the property.
(b) Fabrication Labor. Where the services
				  performed on the fur garment by repairers, alterers, or remodelers result in
				  producing, processing, or fabricating tangible personal property or are a step
				  in producing, processing, or fabricating tangible personal property, the entire
				  charge, including fabrication labor and materials, is subject to tax.
(c) Examples of the Application of Tax Under
				  Specific Circumstances. Listed below are 12 situations involving the measure of
				  taxability on repairing or remodeling fur garments. The answer "Repair"
				  indicates that the tax applies to the retail selling price of materials
				  furnished by the furrier. The answer "Taxable" indicates that the total charge
				  is subject to tax.
(1) A customer brings in a
				  fur coat and requests that it be restyled as a coat.--Repair.
(2) A customer brings in a coat and requests
				  that it be remodeled into a jacket.--Repair.
(3) A customer brings in a coat and requests
				  that it be made into a cape.--Taxable.
(4) A customer brings in a coat and requests
				  that it be made into a stole.--Taxable.
(5) A customer brings in a jacket and
				  requests that it be remodeled into a cape.--Taxable.
(6) A customer brings in a jacket and
				  requests that it be remodeled into a stole.--Taxable.
(7) A customer brings in a cape and requests
				  that it be remodeled into a stole.--Repair.
(8) A customer brings in a stole and requests
				  that it be remodeled into a cape.--Repair.
(9) A customer brings in a coat and requests
				  that it be remodeled, and it is necessary to use additional fur to add collar
				  or cuffs which have not heretofore existed on the coat.--Repair.
(10) A customer comes in and requests that a
				  garment be relined.--Repair.
(11) A
				  customer comes in with an animal scarf and requests that the scarf be restyled
				  into a new style animal scarf.--Repair.
(12) A customer brings in an animal scarf and
				  requests that it be remodeled into a stole or
				  cape.--Taxable.