Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(a) IN GENERAL—ACTIVITIES CONSTITUTING CONTRACTING OR MAKING OF IMPROVEMENTS
190.0140 Cladding Onto New Hoods. A firm fabricates copper cladding in its own shop for installation on steel hoods. Once installed, the copper cladding cannot be removed without being destroyed. If the cladding is installed onto a new hood which is not part of the real estate, then the firm is making a retail sale. Since the firm is fabricating the hood, its entire charge is taxable. If, however, the hoods are part of the real estate at the time of the installation, then the firm is a construction contractor furnishing and installing materials (the cladding). This is true even though the hood is a fixture. As such, the firm is generally the consumer of the cladding. 1/20/95.