§ 1521.4. Factory-Built Housing.
18 CA ADC § 1521.4Barclays Official California Code of Regulations
18 CCR § 1521.4
§ 1521.4. Factory-Built Housing.
(1) Factory-built housing includes only those particular models or units that are approved by the Department of Housing and Community Development of the State of California (Department) or by the local building authority under contract with the Department as factory-built housing within Section 19971 of the Health and Safety Code. Those models or units approved as factory-built housing by the Department or local building authority bear an insignia of approval issued by the Department under Section 19980 of the Health and Safety Code and attached at the factory before shipment.
Such models or units include:
(A) A residential building, dwelling unit, or an individual dwelling room or combination of rooms thereof, or building component, assembly, or system, so manufactured that all of its parts cannot be inspected prior to affixation to realty without disassembly, damage, or destruction, including units designed for use as part of an institution for resident or patient care, which is either wholly manufactured or is in substantial part manufactured at an offsite location to be wholly or partially assembled onsite in accordance with regulations adopted by the Commissioner of Housing and Community Development of the State of California or in accordance with applicable local building requirements if such factory-built housing is inspected and approved by the local enforcement agency at the place and time of manufacture pursuant to Section 19990 of the Health and Safety Code.
(C) “Panelized construction,” such as walls or components that may become one or more rooms of a building. However, “factory-built housing” does include panelized construction sold by the builder or manufacturer of the panelized construction and which consists of a package including wall panels, floors, and a roof that will form a complete housing structure.
(1) Tax applies to 40 percent of the sales price at which factory-built housing is sold to a “consumer” as defined herein. If factory-built housing is purchased free of tax for resale and is subsequently installed and assembled into buildings by the purchaser or on his behalf, tax applies to 40 percent of the sales price of the factory-built housing provided such buildings are to be used for residential dwelling purposes, or as an institution or part thereof for resident or patient care. If any other use is made of the factory-built housing, tax applies to the full sales price, or to 60 percent of the sales price if purchased tax paid with tax measured by 40 percent of the sales price. Taxable use of property purchased free of tax occurs when the property is allocated for use in construction and tax should be reported and paid with the return for that period.
(d) Exclusion Certificate. All retailers who make retail sales of “factory-built housing” claimed to be subject to tax measured by 40 percent of the purchase price must obtain from the “consumer” a signed certificate substantially in the form set forth below. Each person using a certificate of this nature must provide his own forms. They will not be supplied by this board.
The form of certificate prescribed by the board is:
CLAIM FOR 60% EXCLUSION FROM TAX ON PURCHASE OF FACTORY-BUILT HOUSING
(Sec. 6012.7, Rev. & Tax. Code)
I hereby certify that the factory-built housing that I
(Name of Purchaser-Consumer)
am purchasing under the authority of this certificate from
(Name of Supplier)
will be consumed by me in erecting or remodeling a building or other structure on land to be used for residential purposes or as an institution or part thereof for resident or patient care. My seller's permit number if any is______________________________. I further certify that I understand and agree that if the property purchased under the authority of this certificate is used by the purchaser for any purpose other than indicated above, the purchaser shall be liable for payment of tax to the State Board of Equalization measured by 60% of the sales price of the factory-built housing at the time of such use.
Date Certificate Given
Signed by
(Name of Purchaser)
As:
(Owner, Partner, Purchasing Agent, etc.)
The certificates must be attached to or filed in such a manner that they may readily be checked against purchase orders or any document evidencing a sale to the persons claiming that the tax due is limited to 40 percent of the sales price of the factory-built housing.
All purchasers must keep adequate and complete records in accordance with regulation 1698 and such additional records as will clearly support that all property purchased under the certificate was used exclusively under conditions set forth in this regulation.
Credits
Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Section 6012.7, Revenue and Taxation Code.
History
1. New section filed 12-22-80 as an emergency; effective upon filing (Register 80, No. 52). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 4-21-81.
2. Order of Repeal of 12-22-80 order filed 12-26-80 by OAL pursuant to Government Code Section 11349.6 (Register 80, No. 52).
3. New section filed 7-20-81; effective thirtieth day thereafter (Register 81, No. 30).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 18, § 1521.4, 18 CA ADC § 1521.4
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