Section 45IAC2.2-3-11. Procedure when construction material not furnished by contractor

   (a) A contractor is not liable for either the state gross retail tax or use tax when he converts construction material into realty on land he does not own, provided such property is furnished by the customer of the contractor.

  (b) When the customer furnished the construction materials, the customer is deemed to be the user of such property and, as such, he is accountable to the Department of Revenue for any taxes owing and unpaid with respect to such construction material.

  (c) A contractor may function as a retail merchant (having all duties and responsibility as such) with respect to construction material, and then function as an installer or "converter" of such property which will be treated as having been furnished by the customer.

  (d) If a contractor functions as both retail merchant and an installer with respect to construction materials and the over-the-counter sales price of such property is less than fair market value, any consideration received by the contractor for installing or "converting" such property will be treated as part of the over-the-counter sales price subject to the state gross retail tax. (Department of State Revenue; Ch. 3, Reg. 6-2.5-3-2(c)(050); filed Dec 1, 1982, 10:35 am: 6 IR 13)