Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(a) IN GENERAL—ACTIVITIES CONSTITUTING CONTRACTING OR MAKING OF IMPROVEMENTS
190.0020 Agreements Between Parties, Effect of. Property constituting "materials" or "fixtures" is not to be regarded as other than materials or fixtures, i.e., personal property, regardless of whether after affixation it may be personal property by agreement between the parties or for the purposes of security agreements under the Uniform Commercial Code. The physical facts of attachment to real property govern. Accordingly, a contractor cannot properly buy "installed" materials and/or fixtures for resale. This view is not inconsistent with Standard Oil Co. v. State Board of Equalization, 232 Cal.App.2d 91. This decision was concerned only with the sale of fixtures in place. It was not concerned with the definition setting forth the application of the tax with respect to construction contracts. 11/29/66.