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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 190.1590
(b) Specific Property as "Materials" or "Fixtures"
190.1590 Fireplace Mantels. A contractor is in the business of fabricating and installing fireplace mantels. The contractor manufactures two basic varieties: wood and simulated stone or concrete. A mantel usually includes the mantel, the lintel, the legs supporting the mantel, and the hearth. They are fabricated in "manageable pieces" (about four pieces for wood mantels, and seven pieces for concrete mantels) in the shop and then installed at the job site to complete the mantel. The installation cost to the contractor is about 60 percent of the total direct cost of fabricating (including materials and expenses) and installing a mantel.
Traditionally, fireplaces and mantels in buildings have been or have had the appearance of being an integral, inseparable part of the real property. In addition, extensive installation is required by affixation by glue and/or staples, or mortar, and/or leg bolts to the wall and floor. Therefore, under these stated facts, the contractor is furnishing and installing "materials" within the meaning of Regulation 1521. Thus, sales or use tax applies to the sale or use by the contractor of the materials and supplies which it consumes in furnishing the mantel pieces and installing them. 3/17/95.