Cal. Code Regs. Tit. 18, § 1551 - Repainting and Refinishing

(a) Repainting and Refinishing for Consumers. Tax does not apply to single or lump-sum charges for repainting or refinishing used articles. Tax applies in such case to the sale to the refinisher of the paint and other materials used in the process, as he is regarded as the consumer of such property. If the refinisher uses paint or other materials purchased under a resale certificate, or without payment of use tax if purchased outside the state or in interstate commerce, he must report and pay tax measured by the cost of the materials to him.

If, however, the refinisher makes a separate charge at the fair retail selling price for the paint or similar finishing material that is applied to and becomes a component part of the used articles, he is the retailer of such paint or finishing material and tax applies to the amount of the separate charge.

(b) Repainting and Refinishing for Sellers. A refinisher of used articles for sellers who will resell the articles in the regular course of their businesses will be regarded as selling for resale the paint or similar finishing material that becomes a component part of the used articles. The refinisher should take a resale certificate under these circumstances.

Notes

Cal. Code Regs. Tit. 18, § 1551

1. Renumbering from former Section 1950 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).
2. Amendment filed 2-11-75; effective thirtieth day thereafter (Register 75, No. 7).

Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Section 6006, Revenue and Taxation Code. Neon sign relettering, see Regulation 1552. Painters, polishers and finishers, see Regulation 1931 Unrevised Series. Resale certificates, see Regulation 1688 (2668 Unrevised Series).

1. Renumbering from former Section 1950 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).
2. Amendment filed 2-11-75; effective thirtieth day thereafter (Register 75, No. 7).