Western Concrete Structures, Inc. v. State Board of Equalization

Western Concrete Structures, Inc. (WCS), plaintiff and respondent, paid under protest to the State Board of Equalization (Board), defendant and appellant, an assessment for state sales and use tax. The amount in controversy is $35,348 plus interest as provided by law. A written stipulation of facts was presented by the parties and oral and documentary evidence was introduced by WCS. The trial court held that WCS was a construction contractor on the contracts in question and thus entitled to be treated as a “consumer” of materials under California Administrative Code, title 18, article 12, section 1521. Therefore, judgment was entered in favor of WCS and against Board.

During the period in question WCS entered into certain transactions under lump sum contracts in which it furnished shop drawings, post-tensioning tendons (steel strand, end anchorage hardware and sheathing), rental of stressing equipment, and field supervision. The architectural and engineering plans required that a specified amount of force was to be supplied by WCS’s post-tensioning system. From these plans WCS calculated the quantity of tendons and the stress to be applied thereto necessary to provide…