Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Transactions and Use Tax Annotations

815.0000 CONSTRUCTION CONTRACTORS—Regulation 1826

Annotation 815.0020

815.0020 Property Obligated Under Contract Prior to Effective Date of Ordinance. Section 6376 of the Sales and Use Tax Law which grants a partial exemption from state tax of the sale or use of materials and fixtures obligated pursuant to a construction contract entered into prior to August 1, 1967, is not incorporated into the transaction (sales) and use taxes.

With respect to materials purchased and used on or after April 1, 1970, within the BART district, the tax will apply except:

(a) the transactions (sales) tax will not apply if the seller of the materials is obligated to furnish the property to the buyer for a fixed price pursuant to a contract entered into prior to April 1, 1970;

(b) the use of materials will be subject to tax unless the contractor is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to April 1, 1970. This is explained in Regulation 1823, paragraphs (a)(2)(C), (b)(2)(D), (d).

With respect to fixtures which are furnished and installed on and after April 1, 1970, within the district, the district transactions sales tax or use tax applies except with respect to those fixtures furnished and installed under a fixed price contract entered into prior to April 1, 1970, which meets the conditions referred to in the portions of Regulation 1823 referred to above. 3/9/70.