Cal. Code Regs. Tit. 18, § 1548 - Retreading and Recapping Tires

(a) Retreading and Recapping Customer's Own Tires. Tire retreaders and recappers are the retailers of the tangible personal property furnished to consumers and tax applies to sales of such property. If a lump-sum charge is made for retreading or recapping, 75 percent thereof is considered to be the sales price of the property.

(b) Sales of Retreaded or Recapped Tires Generally. Tax applies to sales of retreaded or recapped tires, the sales price of which includes any amount allowed for the customer's old tires or other merchandise traded in (see regulation 1654, Barter, Exchange, Trade-ins). If the method of retreading or recapping tires involves the commingling of old tires delivered to the retreader or recapper with similar property so that the customer receives retreaded or recapped tires which may not be the identical tires delivered to the retreader or recapper, but which are similar to those delivered, the tax applies to the amount charged by the retreader or recapper for the tires.

Notes

Cal. Code Regs. Tit. 18, § 1548

1. Renumbering from former Section 1951 and amendment filed 11-3-71; effective thirtieth day thereafter (Register 71, No. 45).

Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Section 6006, Revenue and Taxation Code.

1. Renumbering from former Section 1951 and amendment filed 11-3-71; effective thirtieth day thereafter (Register 71, No. 45).