a. Under normal
conditions, the following nonexhaustive list becomes a part of realty.
(1) Boilers and furnaces.
(2) Built-in household items such as kitchen
cabinets, dishwashers, sinks (including faucets), fans, garbage disposals and
incinerators.
(3) Buildings, and
structural and other improvements to buildings, including awnings; canopies;
foundations for machinery; floors (including computer room floors); walls;
general wiring and lighting facilities; roofs; stairways; stair lifts;
sprinkler systems; storm doors and windows; door controls; air curtains;
loading platforms; central air-conditioning units; building elevators;
sanitation and plumbing systems; decks; and heating, cooling and ventilation
systems.
(4) Fixed (year-round)
wharves and docks.
(5) Improvements
to land including patios; retaining walls; roads; walks; bridges; fencing;
railway switch tracks; ponds; dams; ditches; wells; underground irrigation
systems; drainage; storm and sanitary sewers; and water supply lines for
drinking water, sanitary purposes and fire protection. Rule
701-214.10 (423) provides more
information on drainage tile.
(6)
Mobile and modular homes installed on foundations.
(7) Planted nursery stock.
(8) Residential water heaters, water
softeners, intercoms, garage door opening equipment, pneumatic tube systems and
music and sound equipment (except portable equipment).
(9) Safe deposit boxes, drive-up and walk-up
windows, night depository equipment, remote TV auto teller systems, vault
doors, and camera security equipment (except portable equipment).
(10) Seating in auditoriums and theaters and
theater stage lights (except portable seating and lighting).
(11) Silos and grain storage bins.
(12) Storage tanks constructed on the
site.
(13) Swimming pools (wholly
or partially underground (except portable pools)).
(14) Truck platform scale
foundations.
(15) Walk-in cold
storage units that become a component part of a building.
b. Exception for installation of new or
replacement items. Sales of items that become a part of a
structure to
contractors, subcontractors, or builders for use in the performance of a
construction contract or a contract for reconstruction, alteration, expansion,
or remodeling of a
structure are retail sales subject to sales tax to be paid
by the contractor, subcontractor, or builder. However, a contract for
installation of new or replacement items in an existing
structure is not
necessarily a
construction contract or a contract for reconstruction,
alteration, expansion, or remodeling of that
structure.
EXAMPLE: A homeowner hires a contractor to replace the
existing garbage disposal in the homeowner's house. This is not a construction
contract or a contract for reconstruction, alteration, expansion, or remodeling
of the house. Therefore, the contractor must charge the homeowner sales tax on
the full sales price of the garbage disposal. Additionally, because the
installation of the garbage disposal involves the performance of enumerated
services, the installation labor charges are also subject to sales tax.
