Colorado Use Tax Exemption for Construction Materials Used for Public Schools

Colorado enacted a use tax exemption for construction materials used to build and renovate public schools across the state, including home rule cities.

Utah Creates Sales Tax Exemption for Electrical Facilities

Utah created a sales and use tax exemption for charges related to the construction, operation, maintenance, repair, or replacement of “distribution electrical cooperative or a wholesale electrical cooperative” facilities.

Michigan Simplifies Taxation of Heavy Equipment Rentals

Michigan simplified their taxation of heavy equipment rentals by exempting these rentals from personal property tax and imposing a 2 percent excise tax on rental transactions of heavy equipment.

Missouri Provides Guidance on Taxability of Plumbing and HVAC Services

The Missouri Department of Revenue issued a letter ruling regarding the tax requirements for an HVAC and plumbing company located in Arkansas.

Louisiana Provides Guidance on Animal Shelter Construction Sales Tax Exemption

Louisiana has provided guidance on requesting and receiving the sales and use tax exemption for materials used in the construction of animal shelters.

Governor of Minnesota Approves Omnibus Tax Bill, Including Phase Out of Accelerated June Payments, New Exemptions for School Groups and Public Safety Facilities

On July 1, 2021, Minnesota Governor Tim Walz signed an omnibus tax bill that included new exemptions and considerations for businesses required to make June accelerated sales tax payments.

Oklahoma Enacts Exemption for Non-Profit Organizations Constructing Affordable Housing for Low Income Residents

Oklahoma has enacted an exemption for non-profit 501(c)(3) organizations on the construction of affordable housing for low income residents.

Best Practices for Construction Contract Planning

Construction projects can be massive and overwhelming endeavors for property owners. The projects entail a slew of decisions and require clear and frequent communication with the project contractor.

Tennessee Issues Ruling on Tax Treatment of Household Appliances

The Tennessee DOR has issued a ruling discussing the application of sales and use tax to the installation of household appliances.

California Disallows Resale Exemption for Contractor Who Used Purchased Materials

A construction contractor was subject to California use tax on materials that it purchased with resale certificates since the contractor failed to establish that it was engaged in the business of selling materials.

Safety Manager Services on Construction Sites Taxable in New York

Providing site safety managers, fire safety managers, and emergency action watchmen for work on construction sites is subject to New York sales and use tax.

Nebraska Supreme Court Holds that Sales Tax is Due on Telecommunications Construction Company’s Purchase of Materials and Furnishing of Services That Used Those Same Materials

The Nebraska Supreme Court held that a telecom construction company was liable for sales taxes on both its purchases of construction materials and for its subsequent sales of services installing and constructing the same telecommunications property.

Concrete Mixing Services Exempt in South Carolina

Fees charged to a road construction contractor for mixing concrete for use in road construction were exempt in South Carolina.

Certain wall partitions qualify for capital improvements exemption from New York sales tax

A taxpayer’s installation of different types of wall partitions qualified as capital improvements exempt from New York sales tax.

Vermont Issues Updated Guidance for Construction Contractors

The Vermont Department of Taxes has provided updated guidance on the application of sales and use tax to contractors.

Sales and Installation of Computer Cabling Are Exempt in Ohio

Effective October 22, 2019, sales and installation of computer cabling are exempt from Ohio sales and use tax but the contractor owes use tax on the cost of the materials installed into real property.

Tennessee Enacts Exemption for Materials Used to Construct Warehouse or Distribution Facilities

Tennessee has enacted an exemption on qualified building materials used in the construction, expansion, or renovation of one or more qualified, new, or expanded warehouse or distribution facilities.

Items Purchased for Installation on Public Highways and Freeways Not Exempt in Utah

A subcontractor’s purchases of items for installation on Utah public freeways and highways were not exempt since the items did not remain personal property once they were installed but rather, became real property subject to Utah sales and use tax.

Non-Profit’s Construction Contract Not Exempt in Texas Since Lease Was Not Sufficiently Long

A non-profit school’s lease was not considered an exempt contract in Texas since the lease was not sufficiently long in relation to the life of the improvements to the realty.

Wisconsin DOR Discusses Taxability Issues for Painting and Finishing Contractors

The Wisconsin DOR issued guidance for painting and finishing contractors on the taxability of their sales and purchases.

Home Improvement Labor Subcontracted by Big Box Retailer is Subject to Iowa Sales Tax

The Supreme Court of Iowa has ruled that installation labor for specific home improvement projects subcontracted by Lowe’s is subject to Iowa sales tax while other specified subcontracted installation labor is exempt. Lowe’s had appealed a district court’s judgement affirming…

How Sales Tax on Construction Works for Buyers and Sellers

Sales and use taxation of construction and real property transactions can be an area of great complexity that affects more than just contractors. Whether you’re a tax professional who works for a construction company or for a business that enters…

Connecticut Updates Guidance on How Materialmen May Use Pay-When-Paid Method

Connecticut has issued an information publication, effective September 24, 2018, providing updated guidance for materialmen using the pay-when-paid method.

Company Could Issue Exemption Certificate to Purchase Materials for Construction Services Provided to Federal Government

An out-of-state company was allowed to purchase construction materials exempt from Indiana sales tax since it performed construction services exclusively for the federal government.