A customer aircraft we service, based in michigan breaks down in California and parts need to be shipped to California inorder to repair the aircraft are the parts subject to California state tax?

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We contacted the California Board of Equalization, where we spoke with Senita, who provided the following guidance:

    1. If the repairing company in California has no affiliation with the company furnishing the parts, the parts are not taxed. Otherwise,

 

    1. Look at whether a warranty requires the work. If the repair is mandatory per the warranty, the parts are *not* subject to tax. If the repair is optional per the warranty, the parts *are* subject to tax.

 

    1. If the work is not required by a warranty and the parts equal more than 10 percent of the total cost of the repair job, the parts must be stated separately on the invoice and they *are* subject to tax. However,

 

    1. If the work is not required by a warranty and the parts equal less than ten percent of the total cost of the repair job, then the parts are *not* taxed.

 

See Publication 119, online at http://www.boe.ca.gov/pdf/pub119.pdf and Regulation 1546, online at http://www.boe.ca.gov/pdf/reg1546.pdf.

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