This is pertinent to California first and foremost but will probably affect everyone, I am in the process of going through an audit for sales tax and I am having some difficulty getting a definitive answer to the question of when is labor taxable. I want to have the correct info before the audit next week!

As I have practiced over the years:

material is taxable

Installation labor is not.

Fabrication Labor is taxable only when we do not do the install, ie, the customer picks up a vanity. Then we tax the full amount.

I have seen a letter going out to fabricators who do not hold a resale licence from the BOE explaining that fabrication labor IS taxable and they should hold a licence.

Any feedback would be greatly appreciated.

Ross Adams (President)

Superior Surfaces, Inc, Santa Clara, Ca