Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.2725


190.2725 Resale Certificate—Out-of-State Sale/Use. A lump-sum construction contractor is engaged in manufacturing, selling, and installing molding, reception stations, cabinets, showcases, free standing furniture, and bars. The contractor purchased, under a resale certificate, building materials which were used on an out-of-state job. About 45 percent of the materials were incorporated into free standing furniture and fixtures for the out-of-state job. The balance was used to improve real property on the out-of-state job, and consisted of "materials" as that term is used in Regulation 1521.

A contractor may properly purchase all construction materials under a resale certificate provided at least some of the materials are incorporated into fixtures or furniture that is resold. Therefore, property purchased ex-tax under a resale certificate and removed from inventory for the purpose of transporting it outside of California for use thereafter solely outside California is exempt from tax. (Sections 6008 and 6009.1.) 3/16/94.