304 Sales to, or Purchases by, the State, Counties, Municipalities and Other Political

Subdivisions of the State. Sales of tangible personal property by the State, counties, municipalities and other political subdivisions of the State (e.g. schools, sheriff offices, municipal housing authorities, welfare agencies) are subject to the sales tax, unless such sales fall within the provisions of Regulation 117–304.1 (transfers by State agencies to other agencies, counties or municipalities at cost) or are otherwise exempt. (See Code Sections 12–36–2120 and 12–36–2130 for the exemptions.) Sales to, or purchases by, the State, counties, municipalities, and other local political subdivisions (e.g. schools, sheriff offices, municipal housing authorities, welfare agencies) of tangible personal property are subject to the sales and use tax, unless such sales fall within the provisions of Regulation 117–304.1 (transfers by State agencies to other agencies, counties or municipalities at cost) or are otherwise exempt. (See Code Sections 12–36–2120 and 12–36–2130 for the exemptions.) ‘‘Tangible personal property’’ includes laundry and dry cleaning services, electricity, certain commu- nications services, accommodation services and certain other services that are subject to the sales and use taxes under Chapter 36 of Title 12. Therefore, transactions with the State or its political subdivision involving these services are subject to the sales and use tax, unless such sales fall within the provisions of Regulation 117–304.1 (transfers by State agencies to other agencies, counties or municipalities at cost) or are otherwise exempt.