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Sales & Use Tax Tips for October 2008
SALES TAX ON CONTRACTORS
Construction: Is Sales Tax Required? Who Is Responsible?
These are common questions in this complicated area of Sales & Use Tax. The answers often depend upon a variety of factors such as:
- Is the project considered as a capital improvement or a repair?
- Are materials separately stated?
- Is there a valid Exemption Certificate?
- Who is the contractor, subcontractor, end user, etc.?
- Is there an agency relationship with government entities?
- Does the project involve demolition, removal, or hazardous materials?
State Auditors prefer to pick apart projects and consider them as taxable repairs. An appropriate, informed "big picture" look can be an important counter approach to their claim. It's often difficult to go back and recover Sales Tax when there was a failure to appropriately collect it from others. Our professionals can help you navigate the relevant law and ensure your business does not unexpectedly or erroneously end up paying Sales or Use Tax.
Our professionals can help you through complicated construction issues and navigate the relevant law to ensure your business does not unexpectedly or erroneously end up paying Sales or Use Tax. For more information please see our May 2007 Tip.
Click here for more Sales Tax Tips or visit our website www.oatax.com. For additional insight on common sales tax concerns, please see the Did You Know? section of our website.
Should you have questions or require assistance please Contact us today or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
