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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Court Decisions
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Tobi Transport, Inc. v. State Board of Equalization … (1980)
Pumping Charges Should Be Included in the Measure of Tax
Plaintiff was engaged in the business of manufacturing and selling ready-mix concrete under one company name and providing pumping services for placing concrete in areas difficult to reach under another company name. Its customers could buy the concrete separately, engage only the pumping services, or could order both the concrete and the placement thereof. The sale of the concrete and pumping services was a single transaction using two invoices.
No written agreement existed between the plaintiff and the customer, and no explicit agreement existed between them as to when title to the concrete passes to the customer. During the course of an audit by the Board, it was concluded that tax for pumping services had been improperly excluded from the measure of sales tax. Following a hearing with the Board, plaintiff paid the tax and filed a claim for refund which was denied. The court concluded that the plaintiff's pumping operation was a transportation function which occurred before the sale of the concrete was completed and, therefore, the pumping charges should properly have been included in the measure of tax. Tobi Transport, Inc. v. State Board of Equalization (1980) 104 Cal.App.3d 730.