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
190.0510 Manufactured Homes. Where manufactured homes are neither mobile homes nor factory-built housing, as defined in Regulation 1521.4, they do not qualify under the provision of the Sales and Use Tax Law that governs the application of tax to mobile homes and factory-built housing. Instead, tax applies as explained in Regulation 1521, Construction Contractors.
Therefore, when a sale is made to a consumer (a person who will not resell the unit), tax applies to the full sales price. When the unit is sold to a construction contractor who will furnish and install the unit, the contractor is the consumer of the materials in the unit and the retailer of the fixtures in the unit. The contractor could, if he or she chose to, issue a resale certificate with regard to the sales portion of the unit applicable to the fixture. The sales portion of the unit applicable to materials and fabrication labor remains taxable. However, when making a sale to a construction contractor, the total sales price should be regarded as taxable unless the contractor issues a timely and valid resale certificate to the manufacturer.
If the manufacturer contracts to furnish and install a unit it produces, the manufacturer would be a construction contractor and tax would apply as explained in Regulation 1521. The manufacturer would be the consumer of materials and sales or use tax would apply to the purchase price of those materials. The manufacturer would be the retailer of the fixtures furnished and installed as part of the unit and it would owe sales tax on those sales. The measure of that tax is the manufacturer's "cost price" as that term is defined by Regulation 1521 (b)(2)(B). 12/9/92.