Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.8 - Types of Construction Contracts

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Types of construction
				contracts.
Construction contracts include lump-sum contracts; cost
				plus contracts; time and material contracts; unit price contracts; guaranteed
				maximum or upset price contracts; construction management contracts;
				design-built contracts; and turnkey contracts.
(2)
Scope.
A contract for
				the installation of one or more of the items listed below does not necessarily
				transform that contract into a construction contract or a contract for
				reconstruction, alteration, expansion, or remodeling. Thus, for example, hiring
				a contractor to install a light fixture in an existing building is not, without
				more, a construction contract or a contract for reconstruction, alteration,
				expansion, or remodeling.
(3)
Examples.
The following is a nonexhaustive list of activities
				and items that could fall within the scope of a construction contract or a
				contract for reconstruction, alteration, expansion, or remodeling of a
				structure. This list should not be used to distinguish machinery and equipment
				from real property or structures since such a determination is factual.
Ash removal equipment (installed as distinguished from
				  portable units)
Automatic sprinkler systems (fire protection)
Awnings and Venetian blinds which become attached to real
				  property
Boilers (installed as distinguished from portable
				  units)
Brick work
Builder's hardware
Burglar alarm and fire alarm fixtures
Caulking materials work
Cement work
Central air conditioner installation
Coal handling equipment (installed as distinguished from
				  portable units)
Concrete work
Counters, lockers (installed as distinguished from portable
				  units), and prefabricated cabinets
Drapery installation
Electric conduit work and items relating thereto
Electric distribution lines
Electric transmission lines
Floor covering that is permanently installed. Subrule
				  219.3(3) provides information on an exception to this regarding
				  carpeting
Flooring work
Furnaces, heating boilers and heating units
Glass and glazing work
Gravel work (excluding landscaping)
Installation of modular homes on foundations
Lathing work
Lead work
Lighting fixtures
Lime work
Lumber and carpenter works
Macadam work
Millwork installation
Mortar work
Oil work
Paint booths and spray booths (installed as distinguished
				  from portable units)
Painting work
Paneling work
Papering work
Passenger and freight elevators
Piping valves and pipe fitting work
Plastering work
Plumbing work
Prefabricated cabinets, counters, and lockers (installed as
				  opposed to portable units)
Putty work
Refrigeration units (central plants installation as
				  distinguished from portable units)
Reinforcing mesh work
Road construction (concrete, bituminous, gravel, etc.)
Roofing work
Sheet metal work
Sign installation (other than portable sign
				  installation)
Steel work
Stone work
Stucco work
Tile work-ceiling, floor and walls
Underground gas mains
Underground sewage disposal
Underground water mains
Vault doors and equipment
Wallboard work
Wall coping work
Wallpaper work
Water heater and softener installation
Weather stripping work
Wire net screen work
Wood preserving work
This rule is intended to implement Iowa Code sections
				  423.2(1)
"c"
and 423.3(37).