A carpet and flooring company and its owners were liable for New York use tax on purchases of materials and supplies from out-of-state vendors which were incorporated into capital improvements for customers in New York. The company argued that the purchases were strictly for resale to third parties. However, since the company was acting as a contractor, it was deemed to be the ultimate user of the materials purchased, therefore resulting in a retail sale subject to sales and use tax (Darcey, New York Division of Tax Appeals, Administrative Law Judge Unit, DTA Nos. 820079 and 820080, Februrary 26, 2009).