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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
C
190.0000 Construction Contractors—Regulation 1521
Annotation 190.1511
(b) Specific Property as "Materials" or "Fixtures"
190.1511 Elevator Cab Decoration. A taxpayer is a subcontractor engaged in finishing elevator cab interiors installed by others. This work includes the furnishing and installing of wall panels, handrails, and similar items. The work is done after the elevator cab has been installed. The taxpayer is regarded as a construction contractor. The property which the taxpayer furnishes and installs constitutes construction "materials" because the installed parts are normally considered "materials" at the time of their installation regardless of the fact that the property is attached to a fixture.
When an elevator contractor agrees to furnish and install a cab, the entire cab is an identifiable unit which does not lose its identity when installed and the entire unit is taxable as a "fixture" even though some of the parts would normally be considered "materials." However, when parts which normally are considered "materials" are installed by a subcontractor on a cab previously installed on realty, the parts are taxable as "materials" to the subcontractor because they lose their identity and become inseparable parts of the realty. 8/5/94.