Sales Tax Audit of Restaurants and Bars - Construction: California Sales Tax Attorney
Californa Sales Tax BOE - Board of Equalization Tax Attorney
California Board of Equalization California Sales Tax
Sales Tax for Construction Restaurant and Bars
APPLICATION OF TAX TO RESTAURANT EQUIPMENT CONTRACTORS
The Board of Equalization, in conjunction with the Restaurant Equipment Contractors Association, has made a study of components involved in lump-sum contracts for the furnishing and installing of restaurant equipment. Review Construction Sales Tax Basics Here
Application of California sales tax may differ based on type of contract you have with your contractor as well as classification of items used to construct the restaurant or bar. Sales tax amount for materials, equipments and fixtures will vary significantly and it may result in huge tax savings for either the restaurant owner or contractor depending upon classification method.
The following are some items which are usually considered to be materials when furnished and installed by a construction contractor in performing a contract for the food industry:
Carpeting, including padding and trim when affixed to the real property by glue, nails, etc.
Doors
Ducts installed in walls, ceilings, and floors
Grab bars (for handicapped lavatories)
Millwork
Pass window frames and shelves
Wall corner pieces and wall caps
Wall covering materials (wallpaper; paneling; etc.)
Wall flashing
Wall mirrors
The following items furnished and installed by contractors to the food service industry are generally classified as fixtures:
Bolt-down counter stool bases, with stools attached thereto
Bolt-down table bases with table tops affixed
Custom fabricated cash stands
Custom fabricated cocktail back bar superstructures
Custom fabricated cocktail back bar
Custom fabricated cocktail bars
Custom fabricated counters
Custom fabricated dishtable assemblies
Custom fabricated make-up tables
Custom fabricated pot racks
Custom fabricated scullery sink assemblies
Custom fabricated seating assemblies/booth units
Custom fabricated serving counters
Custom fabricated service stands
Custom fabricated soffits
Custom fabricated walk-in coolers and freezers that are affixed to the real estate
Dispensers for soap, towels, toilet tissue
Faucets
Freezers
Hoods
Lighting fixtures
Motors
Plumbing fixtures
Refrigeration compressors
Refrigerators
Safes, imbedded in concrete in the buildings
Water heaters (built into fixtures or into water systems)
Water softeners (built into fixtures or into water systems)
Fixtures also include the following items which are built into fixtures or otherwise built into the realty and which may not be removed without damage to the items or the realty:
Char-broilers
Dish dispensers
Dishwashers that are built into a dishtable
Disposals
Drink dispensers
Freezers
Griddles
Ice cream cabinets
Ovens
Refrigerators
Roll warmer
Scrap chutes
Soda fountain systems
Soup warmers
Syrup rails
The following is a list of items which may be generally considered to be machinery and equipment when freestanding or when they are not firmly affixed to the building or built into it or another fixture and which may be readily removed without damage to the building, the unit, or other fixture:
Adding machines
Artifacts items
Bar stools
Beverage and juice dispensers
Bulletin boards
Can openers
Chairs
Char-broilers
Chinaware, silverware, pots and pans, paper goods, culinary items
Coffee makers
File cabinets
Flight-type dishwashers
Floor racks
Griddles
Hot water hoses
Ice bins
Ice cream cabinets
Ice making machinery
Iced tea dispensers
Iced tea machine
Lockers
Microwave ovens (freestanding)
Milk dispensers
Mixers
Ovens
Portable bins and tables
Ranges
Reach-in freezers (self-contained)
Reach-in refrigerators (self-contained)
Roll covers
Safes
Salamanders
Scales
Shelving units
Silverware boxes
Slicers
Table lamps
Tables
Time car racks
Time clocks
Toasters
