Laws, Regulations & Annotations


Business Taxes Law Guide – Revision 2021

Sales And Use Tax Law


Section 6007.5

6007.5. United States contractors. A sale of tangible personal property to a contractor or subcontractor for use in the performance of contracts with the United States for the construction of improvements on or to real property in this State is a retail sale. The gross receipts from such a sale or the sales price of property so sold shall be included in the measure of the taxes imposed by this part.

History—Added by Stats. 1955, Ch. 795, Section 2, in effect September 7, 1955. Note.See also Section 6384.

Constitutionality.—California has the constitutional power to impose sales and use taxes on contractors in relation to work performed at Federal facilities located in California because Congress has expressly consented to such tax in the Buck Act (4 U.S. C. 105) and has thereby waived the sovereign immunity of the United States. C. R. Fedrick, Inc. v. State Board of Equalization (1974) 38 Cal.App.3d 385, cert. denied (1975) 42 L.Ed.2d 820.