Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(a) IN GENERAL—ACTIVITIES CONSTITUTING CONTRACTING OR MAKING OF IMPROVEMENTS
190.0120 Carpeting. Contracts for wall-to-wall carpeting are construction contracts. The carpeting is regarded as "materials" and the contractors are, therefore, regarded as consumers of the carpeting, pads, etc., used in fulfilling such contracts. The tax, accordingly, applies to the sale of such "materials" to the contractor. If purchased ex-tax the cost price of such "materials" is to be reported as self consumed merchandise. In the case of time and material contracts the contractor will be regarded as the retailer of the "materials" if the contractor bills the customer an amount for "sales tax" computed upon a marked up billing. Also, if the contract explicitly provides for the passage of title to the materials prior to the time that the materials are installed and separately states the sales price of the materials, exclusive of installation charges, the contractor is deemed the retailer of the materials per Regulation 1521(b)(2)(A). 7/5/51.