California Office of Tax Appeals Says Act of Processing Customer’s Water to Snow is a Taxable Sale

In a case involving an out-of-state company that contracts with customers to operate snowmaking equipment and produce artificial snow onsite at the customer location, a recent California Office of Tax Appeals opinion held that the company’s process of making snow using their California customers’ water constitutes a taxable sale of tangible personal property for California sales and use tax purposes.

Source Deloitte

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