Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.0176.900


190.0176.900 Doors. A contractor contracts to furnish and install a door for a lump-sum price. The job requires the contractor to cut the door to fit the door opening before installing the door. The contractor is performing a construction contract by furnishing and installing materials, i.e., the door. As such, the contractor is the consumer of the door and any other materials used to install the door. Tax applies to the sale of those materials to the contractor, or to the use of the materials by the contractor.

A lump-sum contract to trim an existing and already installed door, either in place or by removal, trimming, and reinstallation is also a construction contract. Tax does not apply to the contractor's charges. Tax does apply to the sale to or the use by the contractor of any materials consumed in performing that work, e.g., screws or hinges, unless the contract explicitly provides for the transfer of title to those materials before installation and separately states the sales price of the materials on the invoice to the customer. In the latter instance, the contractor is the retailer of the materials and tax applies to the sales price of the materials. 1/10/97.