808. CONTRACTORS AND SUBCONTRACTORS TAXES ON PROPERTY USED IN PERFORMANCE OF CONTRACT - FABRICATION COSTS EXCLUDED.

If a contractor or subcontractor uses tangible personal property in the performance of his contract or to fulfill contract or subcontract obligations, whether the titleholder of such property would be subject to pay the sales or use tax, such contractor or subcontractor shall pay a tax at the rate prescribed by Section 702, 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 or use tax within the Reservation and the tax due thereon has been paid. However, if the contractor or subcontractor fabricates tangible personal property for use in the performance of his contract, fair market value excludes the value of the contractor’s or subcontractor’s fabrication costs.