Section 6007.5 Of Chapter 1. General Provisions And Definitions From California Revenue And Taxation Code >> Division 2. >> Part 1. >> Chapter 1.

. A sale of tangible personal property to a contractor or subcontractor for use in the performance of contracts with the United States for the construction of improvements on or to real property in this State is a retail sale. The gross receipts from such a sale or the sales price of property so sold shall be included in the measure of the taxes imposed by this part.