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BTLG Table of Contents > Sales and Use Tax Annotations > P > 435.0000 Producing, Fabricating and Processing > Annotation 435.0827

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435.0000 Producing, Fabricating and Processing Property Furnished by Consumers—General Rules—Regulation 1526

Annotation 435.0827

(c) Miscellaneous Operations

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435.0827 Falling Trees and Cutting Into Firewood. A taxpayer's customers initially obtain a permit from the California Department of Forestry or the appropriate federal authority to cut and obtain firewood for their personal use. Upon obtaining the permit, the customer gives it to the taxpayer who in turn cuts, splits, and delivers the firewood for the customer. The firewood which is delivered came from trees which the taxpayer cut down as well as previously fallen timber.

The taxpayer's splitting into firewood of fallen timber, including timber he has felled, constitutes a taxable sale under Regulation 1526(a). The taxpayer's customers furnished the material to be fabricated into firewood through a combination of the following two actions: (1) giving the taxpayer their permits to cut and obtain firewood; and (2) the taxpayer's later selection of the specific timber to be cut. The taxpayer subsequently fabricates the materials furnished by his customers to produce firewood which is tangible personal property. 7/11/83.