Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(e) FIXED-PRICE CONTRACTS
190.2838 Fixed Price Contract. A county issues a quotation request for four dump trucks which is contemplated by potential sellers to constitute their offer. The county then accepts an offer by the issuance of a purchase order. The seller's offer was due November 9, 1990, and on November 28, 1990, the county issued a purchase order which listed the sales price plus sales tax computed at the rate in effect at that time. The dump trucks were delivered after July 15, 1991.
Based on the contract documents there was no provision that either party could terminate the contract upon notice. Therefore, since the contract was entered into prior to July 15, 1991, the sale qualified as a fixed price contract and is exempt from the tax rate increase which became effective on July 15, 1991. 11/14/91.