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
190.0765 Resale Certificate Furnished to Contractor. Regulation 1521(b)(2)(B) provides that construction contractors (other than United States contractors) are retailers of fixtures which they furnish and install. Section (b)(2)(B)3 recognizes the only exception to this rule to be when the contractor furnishes and installs a fixture for a person, other than the owner of the realty, who intends to lease the fixture in place as tangible personal property as provided in section 6016.3 of the Revenue and Taxation Code. Under these circumstances the contractor may take a resale certificate from the lessor at the time of the transaction, and the sale to the lessor will be considered to be a sale for resale. The certificate should indicate that the fixture is purchased by the lessor for resale by the purchaser as tangible personal property under section 6016.3 of the Revenue and Taxation Code.
Section (b)(6)(A) provides that in this instance only the contractor may take a resale certificate for a fixture which he furnishes and installs. He cannot take a resale certificate from the prime contractor. 5/24/76.