Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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C

190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.2511

(c) MEASURE OF TAX

190.2511 Out-of-State Contractor—Short Ends. The following guidelines apply to out-of-state contractors who purchase and fabricate materials out of state and install the property in California, but the short ends or scrap resulting from the fabrication process do not enter the state:

(1) As to short ends which are sold, a reduction in the purchase price of materials subject to use tax is allowed for the price at which the contractor sells the short ends.

(2) As to short ends incorporated into another job out of state, a reduction in the purchase price of materials subject to use tax is allowed by the prorated cost of the short ends.

(3) As to short ends not sold or used on another job, no reduction in the purchase price of materials subject to use tax is allowed. 7/13/82; 5/14/96.