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.
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.
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.
Sales Tax FAQs
Explore commonly asked questions about sales and use tax. A great starting place to learn about fundamental sales tax concepts and general applications to business.
Wisconsin Expands Exemption for Construction Contracts
Effective December 1, 2017, the Wisconsin sales tax treatment for lump sum contracts expanded to all construction contracts, subcontractors, and to certain products sold by a subcontractor to a prime contractor.
Saskatchewan Increases Provincial State Tax Rate to 6%
Effective March 23, 2017, the Canadian province of Saskatchewan increased its provincial sales tax rate. Other changes in excise, property and income taxes were also included in the provisions.
Government Contractor in Georgia Liable for Tax on Items Used Overseas
The Georgia Court of Appeals upheld the denial of a sales tax refund sought by a contractor on items it purchased for use in the construction of facilities in Afghanistan for the U.S. government.
Washington Enacts Exemption for Construction of Buildings for Airplane Maintenance
Effective from July 1, 2016 until January 1, 2027, Washington enacted a sales and use tax exemption for charges for labor and services rendered for construction of new buildings made to an eligible maintenance repair operator.
Wisconsin Enacts Exemption for Contractor Purchases for Certain Exempt Entities
Wisconsin created sales and use tax exemption for contractor purposes, effective 01/01/16. More…
Equipment Supplier Not Liable for Tax on Sales to Contractors at Reduced Rate in Mississippi
Mississippi ruled that a commercial kitchen supplier was not liable for tax on sales to contractors at a reduced rate. More…
Purchases Considered Taxable Business Fixtures in Ohio
Ohio rules that a taxpayer’s purchases were considered taxable business fixtures in Ohio. More…
Contract Terms Dictate Tax Treatment in Florida
Itemization of contract terms dictate tax treatment in Florida. More…
Oregon Authorizes Local-Level Construction Tax
Oregon authorized the imposition of local-level construction taxes, effective 06/02/16. More…
Contractors Should Consider California Manufacturing and R&D Partial Exemption
California advises construction contractors to consider manufacturing and R&D partial exemption. More…
Texas Announces Exemption for Disaster Relief in Bastrop County
Texas citizens affected by Bastrop County wildfires can claim a sales tax exemption on labor charges to repair damages. More…
Georgia Issues Guidance on Construction Exemption for Private Colleges
Georgia issued guidance on the temporary sales and use tax exemption for construction materials used at a private college. More…
Colorado Discusses Lump-Sum and Time and Materials Construction Contracts
Colorado discussed whether a contractor was liable for sales tax on purchases for lump-sum and time and materials contracts. More…