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
190.0820 Rock Fill Materials. A contractor purchased rock fill material at a unit price per ton, the material to be dumped by supplier at designated locations. All spreading, leveling and rolling will thereafter be done by the contractor.
Normally, a person furnishing such a product is considered a consumer of materials, but in the above instance, the supplier is a retailer and the sales tax applies to the selling price of the materials. In order for the supplier to be regarded as a consumer of the fill it would be necessary for him to actually do all of the spreading, leveling, and rolling of the material at the construction site, thus improving real property. 8/7/53.