Publication 64, Jewelry Stores

This publication provides guidance for jewelry store owners on how California sales and use tax laws apply to the sale, repair, and handling of jewelry and related items. It outlines when tax applies to merchandise, labor, interstate and foreign sales, trade-ins, and credit transactions, as well as exemptions such as bulk sales of certain bullion. The publication also covers obligations related to use tax, misuse of resale certificates, and rules for deductions involving losses and returned merchandise.

More specifically, this publication explains the tax treatment of fabrication versus repair labor, requirements for documenting out-of-state shipments, and conditions under which discounts and returned items may reduce taxable sales. It details how to properly account for use tax on purchases, including out‑of‑state purchases, donated items, and items withdrawn from resale inventory. Finally, it describes when bad debts, repossessions, theft losses, and restocking fees may be deducted, and provides references to relevant regulations, publications, and CDTFA resources for additional support.

If you need help

If you need assistance with topics in this publication, call our Customer Service Center at 1-800-400-7115 (TTY:711) or chat with us. Customer service representatives are available to assist you Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays. You may also email us.

Please note: This publication summarizes the law and applicable regulations in effect when the publication was written. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the information in this publication and the law or regulations, decisions will be based on the law or regulations and not on this publication.

Revision July 2026