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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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C


190.0000 Construction Contractors—Regulation 1521

Annotation 190.2478

(c) Measure of Tax

190.2478 Final Act of Installation. A subcontractor welds pipe which is laid by the prime contractor. The subcontractor is regarded as providing taxable fabrication labor. If the subcontractor both welds and lays the pipe, the subcontractor is performing the final act of installing the pipe and is the consumer of "materials." In that case, the fabrication labor charges are not taxable because he is not fabricating customer furnished material within the meaning of section 6006(b). 7/18/68.