Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(b) SPECIFIC PROPERTY AS "MATERIALS" OR "FIXTURES"
190.1307 Cabinets—Tax Reimbursement. A sub-contractor who furnishes and installs pre-fabricated cabinets is the retailer of those fixtures and, if the contract allows, may charge sales tax reimbursement to the prime contractor who is his/her customer. The sub-contractor cannot avoid liability for the sales tax by taking a resale certificate from the prime contractor because he/she is by definition the retailer of the cabinets and a resale certificate would be ineffective. In this transaction, the prime contractor is the consumer of the fixtures sold and installed by the sub-contractor. The prime should not add sales tax reimbursement to his/her billings, as this would result in the collection of excess tax reimbursement, as described in Regulation 1700(b)(1). 7/25/90.