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
190.0170 Cultured Marble Products. Sales tax applies to sales of cultured marble products without installation unless the seller obtains and retains a resale certificate. If the purchaser is buying both materials and fixtures, as defined in Regulation 1521, the resale certificate should state that the purchaser is engaged in the business of selling cultured marble materials and fixtures.
When the cultured marble products are furnished and installed under a lump sum contract, the installing contractor owes sales tax on the selling price of the fixtures. He may not accept a resale certificate from prime contractors for the fixtures he installs. If he has purchased the fixture in a completed condition, the price he paid for the fixture is the amount on which he owes tax. If he manufactured the fixture, he owes tax on the price at which he sells similar fixtures in similar quantities ready for installation to other contractors. If he does not sell the fixtures he manufactures to other contractors, then the amount stated in price lists, bid sheets, or other records will be the amount on which he owes tax. If none of the above methods apply, then he must compute his selling price using the six factors stated in Regulation 1521(b)(2)(B)(2)(b).
The installing contractor is the retailer of fixtures, but the consumer of materials. If he does not pay tax reimbursement to the vendor from whom he purchases the materials, then he reports the price he has paid for them on line 2 of his tax return. He does not report or pay tax on the labor or overhead that he expends on further fabricating materials.
In determining which cultured marble products are materials and which are fixtures, the following rules apply:
1. A one-piece vanity top, with the bowl molded into and an integral part of the top, is materials.
2. Vanity tops without a bowl are materials.
3. A vanity top without a bowl that has a bowl added to it at the jobsite prior to being installed on top of a cabinet is a fixture.
4. If a vanity top is installed without a bowl, with a bowl added after the installation of the top, the top is material, the bowl is a fixture.
5. When a bowl is attached (not molded as an integral part) to a vanity top at the factory and subsequently installed at the jobsite, the unit (top plus bowl) is a fixture.
6. When a vanity top without a bowl, but with a cut-out area, is installed into the cabinet at the jobsite and subsequently a drop-in type bowl is installed in the top, the top is materials. The drop-in bowl is a fixture.
7. A bathtub is a material.
8. Wall panels surrounding the bathtub are materials.
9. Decorative items such as tub skirt, soap dishes, toothbrush holders, and other such items commonly known as accessories, are materials.
10. Shower stalls, including the shower pan and the wall panels, are materials, with the exception of a shower stall constructed as a one-piece unit similar to an integral fiberglass unit, which is a fixture.
In rules 3 through 6, we assume that the cabinet is attached (affixed) to the real property before the top is added. The basic rule then becomes that a top without a bowl is materials; a top and bowl unit is a fixture. 7/5/79; 8/23/82; 6/10/85; 12/11/85.