Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(b) SPECIFIC PROPERTY AS "MATERIALS" OR "FIXTURES"
190.1316 Cargo Container Cranes. A cargo container crane which is 100 feet high, weighs approximately 1000 tons, is designed to handle 40 ton payloads, is operated electrically, and is installed on a short supporting rail on a pier is a fixture under Regulation 1521(a)(5).
Modifying a cargo container crane, after years of use, by lengthening its boom and/or its height to allow retrieval of the containers from taller and wider ships does not result in fabrication of a new item of tangible personal property. Rather, the modification is a process to refit the crane for the use for which it was originally produced. When a taxpayer enters into a lump sum contract to perform such modifications, the taxpayer is the consumer of the parts it uses and should pay sales tax reimbursement to its vendors. 3/24/94.