Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(b) SPECIFIC PROPERTY AS "MATERIALS" OR "FIXTURES"
190.1428 Conveyor System Components and Fabrication Labor. In addition to the information in Annotations 190.1430 and 435.0140, the following should be noted with respect to conveyor systems. Taxable fabrication labor in connection with the manufacture of the fixture portion of the system includes labor in the shop, labor at the jobsite which is performed before the item being worked on is permanently attached to: (a) a structure, (b) realty, (c) that which is itself attached to a structure or realty. Taxable labor would include fabricating, assembling, processing, and any other activity short of attaching as in a, b, and c above.
Among the items classified as parts of the fixtures are rollers, bearings, idlers, motors, pulleys and other components performing moving and transporting functions.
Items classified as materials are the components constituting the foundation and supporting structures, including gratings, catwalks, railings, vertical posts, overhead beams, and other members supporting the moving parts. 8/11/78.