A subcontractor to a general contractor constructing real property pursuant to a contract with a state agency was liable for Idaho use tax on the materials it installed on the project. Even though the materials had been purchased by the state agency directly and no sales or use tax was paid, the contractor is deemed the consumer of the materials and owes the use tax on the purchase price of the materials incorporated into real property of an exempt entity. The subcontractor argued that the general contractor was responsible for the tax because the general contractor entered into the contract with the owner and took possession of the materials prior to the subcontractor’s work on the project. The Idaho State Tax Commission stated that multiple parties could be held liable for a tax and the fact that the general contractor could have also been liable for the tax did not change the taxpayer’s use tax liability it incurred when it exercised power over the materials in fulfilling its obligations as a subcontractor. (Decision No. 24442, Idaho State Tax Commission, August 1, 2013)