Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
565.0000 UNITED STATES CONTRACTORS
(e) TITLE-PASSAGE CLAUSES
565.1600 Resale Certificates. Where a contractor is buying an overhead item which it will use in the performance of both its commercial and governmental contracts and those governmental contracts contain the appropriate title passage clauses, the Aerospace decision permits the contractor to allocate part of the purchase price to its government contracts. The contractor may thus purchase the item ex-tax by issuing a resale certificate to the seller. The contractor must then report and pay use tax on the amount of the sales price allocated to the private and commercial contracts. 2/26/92.