Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
565.0000 UNITED STATES CONTRACTORS
(e) TITLE-PASSAGE CLAUSES
565.2500 United States Contractors. A U.S. contract did not contain a progress payment title clause passing title to the property in question prior to use. The contract did have a provision passing title to all materials and equipment acquired for the vessel. Direct consumable supplies do not fit this category as they may be for use on the vessel, but are clearly not for the vessel. The sale of such direct consumable supplies to the contractor was, thus, not a sale for resale but, instead, was a taxable retail sale. 2/13/86.