Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
305.0007 Construction Contractors. A construction contractor other than U.S. government contractor may be considered a retailer rather than a consumer of materials if he meets the provisions of Regulation 1521(b)(2)(A)(2). This section provides, in part, that a contractor is a retailer if the contract explicitly provides for the transfer of title to the materials prior to installation and the contract separately stated the sales price of the materials exclusive of the charge for installation. If the contractor meets these provisions and the contract is for improvements to realty on an Indian reservation, the contractor may purchase the materials for resale and incur no sales tax liability as a result of selling them to an Indian(s) on the reservation, even though the material is attached to the realty by the contractor. 3/31/89.