Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
565.0000 UNITED STATES CONTRACTORS
(b) "IMPROVEMENTS ON OR TO REAL PROPERTY"
565.0276 Federal Credit Unions. Construction contracts performed for federal credit unions are not treated as U.S. government contracts pursuant to section 6384 because credit unions are not the United States. Rather, they are incorporated federal instrumentalities not wholly owned by the United States. Construction contracts performed for federal credit unions are treated as any other construction contracts, i.e., the contractor is the retailer of fixtures and the consumer of materials. However, since Regulation 1614(a)(4) specifically exempts from the tax sales to federal credit unions, the contractor should not collect sales tax reimbursement nor report such sales of fixtures as taxable. The sales of materials to the contractor are properly subject to tax as the contractor is the consumer thereof. 4/11/90.