Common use of Use tax on contractors Clause in Contracts

Use tax on contractors. 1. When a contractor or subcontractor uses tangible personal property in the performance of that person's contract, or to fulfill contract or subcontract obligations, whether the title to such property be in the contractor, subcontractor, contractee, subcontractee, or any other person, or whether the titleholder of such property would be subject to pay the sales or use tax, such contractor or subcontractor shall pay a use tax at the rate prescribed by section 57-40.2-02.1 measured by the purchase price or fair market value of such property, whichever is greater, unless such property has been previously subjected to a sales tax or use tax by this state, and the tax due thereon has been paid.

Use tax on contractors. 1. When a contractor or subcontractor uses tangible personal property in the performance of that person's contract, or to fulfill contract or subcontract obligations, whether the title to such the property be in the contractor, subcontractor, contractee, subcontractee, or any other person, or whether the titleholder of such the property would be subject to pay the sales or use tax, such the contractor or subcontractor shall pay a use tax at the rate prescribed by section 57-40.2-02.1 measured by the purchase price or fair market value of such property, whichever is greater, unless such the property has been previously subjected to a sales tax or use tax by this state, and the tax due thereon has been paid. This section does not apply to a contractor or subcontractor that does not enter a contract for the purchase of the tangible personal property.