Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(b) SPECIFIC PROPERTY AS "MATERIALS" OR "FIXTURES"
190.1298 Cabinet—Rewrapping or Reconditioning in Place. The process consists of removing existing cabinet doors, drawers, and hardware, covering them with veneer and reinstalling them to the existing cabinets with new moldings and hardware. The cabinets are stained and finished by a subcontractor and, if new counters are needed, another subcontractor is utilized.
Lump-sum contracts to perform the reconditioning or "rewrap" constitute contracts for the improvement of realty. Tax applies when such a contractor buys the parts. If for some reason the contractor purchased the parts for resale, use tax should be paid by him based on the cost of the items. The subcontractors are consumers of the parts and materials which they utilize. Tax reimbursement should not be billed to the owner or person in possession of the realty. 4/26/83.