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BTLG Table of Contents > Sales and Use Tax Regulations > Article 3 > Regulation 1526

Sales And Use Tax Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 4. Sales and Use Tax

Article 3. Manufacturers, Producers, Processors

Regulation 1526

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Regulation 1526. Producing, Fabricating and Processing Property Furnished by Consumers—General Rules.

Reference: Section 6006, Revenue and Taxation Code.

Alterations of new garments, see regulation 1524 (Section 1524 of Title 18).

Printing and Imprinting, see regulation 1541 (Section 1541 of Title 18).

Repairing and Reconditioning Generally, see regulation 1546 (Section 1546 of Title 18).

(a) In General. Tax applies to charges for producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting.

(b) Operations Included Repairing and Reconditioning Distinguished. Producing, fabricating, and processing include any operation which results in the creation or production of tangible personal property or which is a step in a process or series of operations resulting in the creation or production of tangible personal property. The terms do not include operations which do not result in the creation or production of tangible personal property or which do not constitute a step in a process or series of operations resulting in the creation or production of tangible personal property, but which constitute merely the repair or reconditioning of tangible personal property to refit it for the use for which it was originally produced.

(c) Operations Included—Stretch Limousines. Producing, fabricating, and processing include any operation which results in the creation or production of a stretch limousine. The following rules apply in determining the measure of tax for converting a vehicle into a stretch limousine:

(1) When a vehicle dealer, at the request of a consumer, has a conversion company convert (i.e., stretch) a vehicle into a limousine, the tax does not apply to the conversion company's charge to the dealer, but the tax does apply to the entire charge made to the consumer by the dealer for the conversion.

(2) When a consumer provides the conversion company with a vehicle for conversion into a stretch limousine, the tax applies to the entire charge made to the consumer by the conversion company.

History—Effective July 1, 1939.

Adopted as of January 1, 1945, as a restatement of previous rulings.

Amended and renumbered August 5, 1969, effective September 6, 1969.

Amended October 19, 1988, effective January 11, 1989. In subdivision (c), amended regulation to include within the definition of producing, fabricating, and processing any operation which results in the creation or production of a stretch limousine.