Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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U

565.0000 UNITED STATES CONTRACTORS

Annotation 565.1149

(e) TITLE-PASSAGE CLAUSES

565.1149 Auto Repairs—U.S. Government Contractors. A general title provision pursuant to a contract with the United States would not necessarily pass title to parts used to repair vehicles owned or leased by a U.S. Government contractor.

However, if the contract does provide for accelerated passage of title to the parts prior to any use by the contractor, if both parties understand the provision as applying to parts purchased by the company and installed onto vehicles not owned by the United States, the title provision is controlling and the contractor is regarded as having purchased the property for resale. 12/18/92; 1/20/94.