Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > C > 190.0000 Construction Contractors > Annotation 190.2485

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 190.2485

(c) Measure of Tax

---

190.2485 Freight-In Part of Gross Receipts. When a construction contractor purchases and installs fixtures without further manufacturing, the freight-in to the contractor is not subject to tax if excluded from "gross receipts" under section 6012 or from "sales price" under section 6011.

When a construction contractor purchases fixture components and performs further manufacturing or assembling of the components, the freight-in to the contractor is subject to tax as part of the "cost price" of the fixture to the contractor. An example of the latter situation would be a construction contractor who purchases a pump and a frame; expends labor in attaching the pump to the frame; and installs the pump/frame combination on real property. Freight-in on the pump and frame is subject to tax. 6/23/76.