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 1553 - Miscellaneous Repair Operations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Bookbinders. Bookbinders are consumers,
				  rather than retailers, of the materials, such as cloth, leather, cardboard,
				  glue, and thread, used in rebinding used books for a single or lump-sum charge,
				  and tax applies to the sale of such materials to the bookbinder. If, however,
				  the bookbinder makes a separate charge for such property at the fair retail
				  selling price, the bookbinder is the retailer of the materials and tax applies
				  to the amount of the separate charge.
When bound books are sold at retail, tax applies to the
					 gross receipts without any deduction for the cost of binding, even when done by
					 the seller of the books. Tax also applies to the entire charge for the initial
					 binding of new books furnished to a bookbinder for binding, unless the customer
					 of the bookbinder will sell the books in the regular course of business, in
					 which case the customer of the bookbinder may furnish a resale certificate to
					 the bookbinder.
Tax applies to the entire charge for binding done in
					 connection with the furnishing of a finished product, i.e., a bound book,
					 including a book produced with either a hard or soft cover by binding together
					 materials such as magazines, newspapers, or business records.
(b) Motor and Transformer Rewinding. Tax
				  applies to sales of materials and supplies furnished in connection with the
				  rewinding of motors and transformers. If a lump-sum price is charged for the
				  materials and labor, 50 percent thereof is regarded as the sales price of the
				  supplies and materials.
(c) Shoe
				  Repairperson. Persons engaged in repairing shoes are retailers of the tangible
				  personal property furnished in connection with the repair work and tax applies
				  to the retail selling price of such property. If a lump-sum or single charge is
				  made for both materials and labor, 25 percent thereof is considered the retail
				  selling price of the materials.
Tax applies to retail sales by shoe repairpersons of such
					 items as shoes, polishes, and laces.
(d) Tennis Racket Restringing and Repairing.
				  Persons engaged in repairing and restringing tennis rackets are retailers of
				  the strings and other tangible personal property furnished, and tax applies to
				  the retail selling price thereof. If a lump-sum charge is made for materials
				  and labor, 50 percent thereof is regarded as the retail selling price of the
				  materials furnished.
(e) Watch and
				  Jewelry Repair Persons. Persons engaged in repairing watches and jewelry are
				  consumers of watch, clock and jewelry repair parts and materials such as
				  crystals, findings, chain links, gold and gems used in repairing watches,
				  clocks and jewelry. Tax applies with respect to the sale to them of such
				  property unless
(1) The retail value of the
				  parts and materials furnished in connection with repair work is more than 10
				  percent of the total charge, or
(2)
				  The repair person makes a separate charge for the repair parts and materials.
Repairers are, however, retailers of wrist watch straps,
					 metal bands, watches, clocks, chains, precious stones, gems and other tangible
					 personal property which they sell to consumers in the regular course of
					 business, and tax applies to the gross receipts from such retail sales.
When the retail value of wrist watch straps, metal bands,
					 watches, clocks, chains, precious stones, gems and other tangible personal
					 property furnished in connection with a repair work is more than 10 percent of
					 the total charge for the repair, the repair person is the retailer of these
					 parts and materials, and must segregate on the invoices to customers and in its
					 records the fair retail selling price of these parts and materials from the
					 charges for the repair labor performed. "Total charge" means the aggregate of
					 the retail value of the parts and materials furnished or consumed in making the
					 repairs and charges for the labor performed in making the
					 repairs.