This Ruling has been obsoleted by AN 94(4)

Ruling 89-47

Contractor

To the extent that Taxpayer renders services in connection with the construction of new roads or parking lots, his grading services are not subject to sales and use taxes. To the extent that he renders services in connection with the repair or rebuilding of existing roads or parking lots, his grading ser- vices are subject to sales and use taxes.

This answer assumes that the roads or parking lots are situated on industrial, commercial or income-producing real property. To the extent that the roads are situated on residential property, Taxpayer's grading services are not subject to sales and use taxes, whether new roads or the repair or rebuilding of existing roads are involved.

Taxpayer has also indicated that his services involve road grading only and not landscaping. If this changes, his landscaping services will be subject to sales and use taxes.

LEGAL DIVISION

August 15, 1989