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BTLG Table of Contents > Sales and Use Tax Annotations > C > 190.0000 Construction Contractors > Annotation 190.2839

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C

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190.0000 Construction Contractors—Regulation 1521

Annotation 190.2839

(e) Fixed-Price Contracts

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190.2839 Fixed Price Contracts. To qualify for the exemption provided in Sales and Use Tax Law section 6376 for fixed price contracts, a construction contract must be for a specific price, which may not be increased due to an increase in the sales and use tax rate applicable to tangible personal property required to be furnished under the contract.

A cost-plus-a-fixed-fee contract is not for fixed price even if it provides for a guaranteed maximum price.

A cost-plus-a-percentage-fee contract that specifies certain costs that will not be reimbursed but does not preclude the contractor from passing on an increase in sales tax is also not a fixed price contract. 7/26/90.