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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
R
490.0000 Returns, Defects and Replacements—Regulation 1655
Annotation 490.0495
(c) Warranties
(1) In General
490.0495 Appliances Warranties. A California appliance service company is hired by an out-of state firm to do appliance repairs in California to fulfill the out-of-state firm's obligations under an optional warranty.
The out-of-state firm is the person obligated to repair the appliance under the optional warranty contract. Thus, it is the consumer of, and must pay tax on, all parts and materials purchased. It is not proper for the out-of-state firm to provide the appliance service company a resale certificate. The service company is the retailer of the parts sold to the out-of-state firm. 12/21/92.