Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 565.0040


565.0040 Distinction Between Federal Government Construction Contracts and Non-Government Construction Contracts, in Applicability of Tax. In the case of contracts with the Federal Government, the application of the tax differs from that in the case of a contractor with a private person or corporation in that, pursuant to express provisions of law, the sale to the contractor of any tangible personal property, whether "materials" or "fixtures," is the taxable sale measured by the gross receipts from that sale. Even if the contractor fabricates "fixtures" from raw materials purchased by him, the tax applies not to the fair retail value of the fabricated fixtures, as in the case of non-Government contracts, but applies to the sale price of the raw material to the contractor. 2/2/51.