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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 190.0630

(a) In General—Activities Constituting Contracting or Making of Improvements

190.0630 Prefabricated Modular Rooms. Contracts for prefabricated modular rooms to provide shielding from radio frequency radiation are regarded as construction contracts if the rooms are firmly affixed to the realty, with the intention of making a permanent addition thereto, but are contracts for the sale of tangible personal property if the rooms are not so affixed to the realty. If the transaction is a sale of tangible personal property, the cost of labor to assemble the room on site is subject to tax because it is fabrication labor rather than exempt installation labor. 7/26/79.