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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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U


565.0000 United States Contractors

Annotation 565.0185

(a) In General


565.0185 U.S. Construction Contracts. Pursuant to Regulation 1521(b)(1), construction contractors are the consumers of materials and fixtures which they furnish and install and the retailers of machinery and equipment which they furnish in performing contracts with the United States. The contractor's liability for tax on materials and fixtures cannot be avoided by contract wording alleging that these items are for resale to the United States. 3/5/90.