Home Page
postheader postheader postheader postheader postheader postheader

  1. If a store engages in the sale of gasoline or automobile services, the appropriate store classification shall apply at each location wherein the sale of merchandise in the store, other than gasoline or automobile services, exceeds twenty-five percent (25%) of the total annual receipts for the location. Employees engaged in the fueling, service or repair of automobiles or trucks shall be assigned to the applicable gasoline station classification. Cashiers that work within the store and accept payments for store merchandise and automobile services shall be assigned to the applicable store classification.

    Examples

    An employer operates a combination convenience store and retail gasoline station with 30% of gross receipts developed in the sale of store merchandise. The store occupies 3,000 square feet and is open 24 hours per day. All gasoline sales are controlled from inside the store. The operations of this employer are assignable to Classification 8061, Stores – groceries or provisions – retail.

    At a second location, the employer operates a similar store; however, only 20% of the gross receipts are developed in the sale of store merchandise. The operations of this employer are assignable to Classification 8324, Automobile Gasoline Stations – retail.

    Also at this second location, the employer opens a service bay to perform automobile oil changes and smog checks in addition to gasoline and store sales.

    The operations at this location are now assignable to Classification 8387(1), Automobile or Truck Gasoline Service Stations, due to the automobile service operations provided.

The classification determination requires a comparison of the percentage of store sales relative to fuel sales for each separate location. Unless the store sales exceed 25% of the annual receipts for the location, no store classification applies to the location. Gasoline station locations that sell a small amount of store merchandise (not exceeding 25% of gross receipts) are classified as 8324, Automobile Gasoline Stations – retail, if no automobile services are performed, or 8387(1), Automobile or Truck Gasoline Service Stations, if service or repair operations are performed.

If the store sales exceed 25% of the annual receipts for the location, the applicable store classification is determined based on Rule 6b in the USRP at Part 3, Section IV. This rule states, in part:


The applicable store classification is determined based upon the type of merchandise sold, leased, consigned or auctioned and whether the operations are wholesale or retail. In the absence of specific instructions found in the classification phraseology or footnote, the following definitions apply when determining the applicable store classification.

(1) Type of Merchandise Sold

If a store sells more than one type of merchandise, each of which may be subject to a different classification, the store classification shall be determined based on the highest rated category of merchandise sold, provided that category exceeds twenty-five percent (25%) of gross receipts. If a store sells lottery tickets authorized by the California State Lottery, only that portion of the sales proceeds identified by the California State Lottery as commission shall be included in determining gross receipts.


Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
   

HOME PAGE ABOUT US GET A QUOTE REFER A FRIEND CONTACT US

Mailing Address | 24307 Magic Mountain Pkwy. Suite 534 | Valencia, CA. 91355 | 213.605.1348

Logo

 
Powered by Insurance Website Builder