(a) A person is a retail merchant making a retail transaction when the person sells tangible personal property which:

1. (1) is to be added to a structure or facility by the purchaser; and
2. (2) after its addition to the structure or facility, would become a part of the real estate on which the structure or facility is located.

(b) A contractor is a retail merchant making a retail transaction when the contractor:

1. (1) disposes of tangible personal property; or

2. (2) converts tangible personal property into real property;

   under a time and material contract. As such a retail merchant, a contractor described in this subsection shall collect, as an agent of the state, the state gross retail tax on the resale of the construction material and remit the state gross retail tax as provided in this article.

(c) Notwithstanding subsections (a) and (b), a transaction described in subsection (a) or (b) is not a retail transaction, if the ultimate purchaser or recipient of the property to be added to a structure or facility would be exempt from the state gross retail and use taxes if that purchaser or recipient had directly purchased the property from the supplier for addition to the structure or facility.

As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.181-2016, SEC.21.