California CDTFA Publishes Information on Application of Sales and Use Tax to Jewelry Stores

The California Department of Tax and Fee Administration (CDTFA) Oct. 1 published information on the application of sales and use tax to jewelry stores. The publication provides that: 1) sales of new and used jewelry, watches, clocks, watch bands, chains, and metal bands and custom-made jewelry or other fabricated items are generally taxable; 2) labor charges to create or produce items for customers are taxable but charges to repair or recondition items to restore their original use aren’t taxable; 3) taxpayers who purchase taxable property for resale without paying California sales tax but then use the property for another purpose ...