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BTLG Table of Contents > Sales and Use Tax Annotations > C > 190.0000 Construction Contractors > Annotation 190.2850

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C

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190.0000 Construction Contractors—Regulation 1521

Annotation 190.2850

(e) Fixed-Price Contracts

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190.2850 Earthquake Tax Increase. "For building contracts to qualify for the" fixed-price contract exemption from the "earthquake tax" they must possess the following characteristics:

1. They must be binding on the parties prior to the operative date of the "earthquake tax", November 7, 1989;

2. They must set forth the amount of tax, by stating either the amount or rate of tax or that tax is included in the total price;

3. There is no provision in the contract by which the tax or rate may be adjusted to reflect change in the sales tax rate; and

4. Neither party has retained in the contract the right to unconditionally terminate the contract. 6/10/91.