Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
565.0000 UNITED STATES CONTRACTORS
(b) "IMPROVEMENTS ON OR TO REAL PROPERTY"
565.0650 Transformers, Switchgear, etc. The installation of transformers, switchgear, conduit, cable, etc. by an independent electrical contractor pursuant to a contract with the federal government constituted improvements to real property. The ex-tax purchase of these items by the contractor was properly subject to use tax because the contractor was the "consumer" for sales and use tax purposes. The exemption from sales tax for tangible personal property sold to the U.S. Government is inapplicable in this instance. 9/23/76.