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Business Taxes Law Guide—Revision 2024
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 190.2193
(b) Specific Property as "Materials" or "Fixtures"
190.2193 Signs, Directories, Consoles, and Dimensional Letters. A taxpayer is a licensed construction contractor who manufactures and installs interior and exterior sign products pursuant to lump-sum contracts. The various categories of signs installed and tax applications follow:
(1) Traffic control signs: These signs consist of signs outside and inside a building that provide parking directions such as "Do Not Enter," "Keep Right," or "No Parking." The signs are attached to buildings or are mounted on posts.
These signs are classified as "fixtures" since they do not lose their identity when installed.
(2) Directories, custom metal consoles and dimensional letters: These signs are mostly built at the taxpayer's plant and then attached to the real property in such a manner so as to become accessory to the building and, thus, "fixtures."
(3) Signs which are not attached to the building but stand alone. The sign will be classified as "materials" if the sign is built on a cement pad piece by piece on the job site. If the sign is manufactured at the taxpayer's plant and then taken to the jobsite and placed on the cement foundation and secured by bolts, the sign is a fixture.
(4) Directories or signs which are recessed and flush with wall surface and facade striping which is consistent with exterior wall: The analysis applied to the other three groups of signs also apply to this group. If the signs are constructed at the taxpayer's plant and are identifiable as signs when they are delivered to the jobsite for installation, the signs are fixtures. This is true even if there is some assemblage done on the site such as placing prefabricated letters in order when bolting them to a wall or placing a console which is delivered in five large parts in the proper configuration. Facade striping may, however, be classified as materials if the construction is done on the jobsite. If the signs are completed before delivery to the jobsite and merely created in the color of the striping and set in the concrete to create the image of a continuous striping, the sign will remain a fixture. 9/11/91.