California Audit Manual Chapter 12, Construction Contractors
California Audit Manual Chapter 12, Construction Contractors

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This chapter is a guide for determining the sales and use tax liability of construction contractors. The chapter does not cover all phases of auditing problems that may be involved as they are too numerous and complex. In all cases, the auditor should refer to provisions of the Sales and Use Tax Law as supported by Regulation 1521 — Construction Contractors, and pertinent Annotations. The term “contractor,” as used herein, includes both general contractors and subcontractors, whether licensed or unlicensed, who perform contracts for erecting, remodeling, or repairing a building or other structure on land. The essential factor is that for the contractor to fall within the specific taxing provisions applicable to “construction contractors,” the contractor must install the property in a manner by which it is incorporated into the realty. Thus broadly speaking, a construction contractor is a person who makes improvements on or to real property.

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  • Released: November 16, 2020
  • Author: Business Tax and Fee Division California Department of Tax and Fee Administration
  • Rating: 5
  • Publisher: Ebook DIgital Agency
  • Total Page: 982 pages
  • File Size: 3670 KB
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