Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(c) MEASURE OF TAX
190.2478 Final Act of Installation. A subcontractor welds pipe which is laid by the prime contractor. The subcontractor is regarded as providing taxable fabrication labor. If the subcontractor both welds and lays the pipe, the subcontractor is performing the final act of installing the pipe and is the consumer of "materials." In that case, the fabrication labor charges are not taxable because he is not fabricating customer furnished material within the meaning of section 6006(b). 7/18/68.