California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 19 - Bradley-Burns Uniform Local Sales and Use Taxes › Section 1806 - Construction Contractors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  In General. All of the provisions of the state Sales and Use Tax Law and
				  regulations adopted thereunder relating to construction contractors (other than
				  those relating to the rate of tax) are applicable to state-administered local
				  sales and use taxes.
(b) Jobsite Is
				  Place of Business. The jobsite is regarded as a place of business of a
				  construction contractor or subcontractor and is the place of sale of "fixtures"
				  furnished and installed by contractors or subcontractors. The place of use of
				  "materials" is the jobsite. Accordingly, if the jobsite is in a county having a
				  state-administered local tax, the sales tax applies to the sale of the
				  fixtures, and the use tax applies to the use of the materials unless purchased
				  in a county having a state-administered local tax and not purchased under a
				  resale certificate. If the jobsite is in a county without a state-administered
				  local tax, state-administered local sales tax will not apply to the sale of the
				  fixtures even though the contractor's principal place of business is in a
				  county with such a tax.
If fixtures are purchased by a contractor tax paid in a
					 county having a state-administered local tax, the contractor, upon installing
					 the fixtures in a county without such a tax, is entitled to a credit for the
					 local tax of the place of purchase.
The place of sale or purchase of a factory-built school
					 building (relocatable classroom) as defined in paragraph (c)(4)(B) of
					 Regulation 1521 (18 CCR 1521), Construction
					 Contractors, is the place of business of the retailer of the factory-built
					 school building regardless of whether sale of the building includes
					 installation or whether the building is placed upon a permanent
					 foundation.
(c) United
				  States Contractors. United States contractors are consumers of both materials
				  and fixtures, and the place of use of both is the jobsite. Accordingly, if the
				  jobsite is in a county having a state-administered local tax, the use tax
				  applies to the use of the materials and fixtures unless purchased in a county
				  having a state-administered local tax and not purchased under a resale
				  certificate.
1. Amendment
					 and renumbering of former section
					 2206 filed 1-26-70; effective
					 thirtieth day thereafter (Register 70, No. 5).
2. Amendment of
					 subsection (a) filed 12-19-73; effective thirtieth day thereafter (Register 73,
					 No. 51).
3. Amendment of subsection (b) and NOTE filed 7-19-91;
					 effective 8-19-91 (Register 91, No. 46).
Note: Authority cited: Section
						7051,
						Revenue and Taxation Code. Reference: Sections
						6006-6010, inclusive, 6012.6,
						6015, 6384, 7202 and 7203, Revenue and Taxation
						Code.