Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(c) MEASURE OF TAX
190.2485 Freight-In Part of Gross Receipts. When a construction contractor purchases and installs fixtures without further manufacturing, the freight-in to the contractor is not subject to tax if excluded from "gross receipts" under section 6012 or from "sales price" under section 6011.
When a construction contractor purchases fixture components and performs further manufacturing or assembling of the components, the freight-in to the contractor is subject to tax as part of the "cost price" of the fixture to the contractor. An example of the latter situation would be a construction contractor who purchases a pump and a frame; expends labor in attaching the pump to the frame; and installs the pump/frame combination on real property. Freight-in on the pump and frame is subject to tax. 6/23/76.