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
190.1020 Supplier of Materials. A taxpayer would obtain a quote from a third party contractor who would install the property furnished by the taxpayer. The taxpayer would place its bid and communicate that quote amount to the general contractor. The general contractor would then issue a purchase order to the taxpayer for the bid amount less the installation amount. The prime contractor would directly contract with the subcontractor at the quote price of the installation communicated by the taxpayer to the prime contractor.
In this case, the taxpayer acted only as the supplier of materials under purchase orders issued by the prime contract since it did not have any responsibility nor any control over the installation of the materials it provided. 2/9/96.