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
190.0597 "Portable" Aircraft Hangers. These aircraft hangers are in reality prefabricated modular buildings movable on the highway as a unit. Upon installation, the hangers are in the shape of a "T" as looked at from above. They are attached to the asphalt on which they rest by lag screws. The hangers are sealed to the ground by tar. They are wired to a metered electrical hookup.
Since the hanger is attached in a substantial manner to the realty, it constitutes an improvement to real property for sales and use tax purposes. A contract to furnish and install a portable hanger of the type in question is a construction contract.
However, where the unit is sold for installation by the purchaser (or by a contractor hired by the purchaser), the contract is not a construction contract, but is a contract for the sale of tangible personal property. The total price of the unit is taxable notwithstanding the fact that it may then be installed as an improvement to real property. 11/28/88.