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BTLG Table of Contents > Sales and Use Tax Annotations > C > 190.0000 Construction Contractors > Annotation 190.0161

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C

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190.0000 Construction Contractors—Regulation 1521

Annotation 190.0161

(a) In General—Activities Constituting Contracting or Making of Improvements

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190.0161 Construction Contractor—Issuing Resale Certificate. A construction contractor may issue a resale certificate to its suppliers when purchasing materials as a fungible, commingled lot, a significant portion of which the contractor intends to resell and a portion of which the contractor will consume, when at the time of purchase the contractor does not know which item will be consumed and which will be resold. For example, materials are all placed in a resale inventory and removed for sale or use as needed. However, if at the time of purchase the contractor knows that certain materials will be consumed in the performance of a construction contract, the contractor may not issue a resale certificate with respect to the materials. The sale to the contractor of such materials is subject to the tax. 8/15/94.