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…
Audio-Visual Equipment Not Classified as Building Materials in Colorado
Colorado discussed whether audio-visual equipment was classified as building materials for exemption purpose. More…
Government Contractor Liable for Georgia Sales and Use Tax on Items Purchased for Overseas Contract
Georgia ruled that a contractor was not entitled to a sales and use tax refund for items purchased for an overseas contract. More…
Machinery, Equipment and Other Items Used in Construction-Related Activities Taxable in Missouri
A taxpayer’s machinery, equipment, materials, and supplies purchases used in construction-related activities are taxable in Missouri. More…
Leased Realty Improvements Were for Benefit of Exempt Entity in Texas
A build-to-suit lease between an exempt nonprofit entity and a nonexempt landlord qualified as an exempt contract from Texas sales tax. More…
Construction Materials Pulled from Inventory Non-Taxable in Indiana
A retailer also acting as a general contractor was not liable for Indiana sales tax on construction materials. More…
New Mexico Issues Ruling on Home Sale and Construction Services
New Mexico issued a ruling about the application of gross receipts taxes on home sale and construction activities. More…
Subcontractor Liable for Tax on Materials it Installed in Idaho
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…
Service Provider Installing Property is Construction Contractor in Illinois
A service provider that installs racking systems for customers is considered a construction contractor who must pay Illinois use tax on its purchases because the racking systems are materials that are permanently affixed to real estate. Even though there were…
Minnesota Clarifies Treatment of Repair and Maintenance Labor
The Minnesota Department of Revenue has issued a clarification regarding the sales and use tax treatment of repair and maintenance labor.
Virginia Contractor Liable for Tax on Purchase of Cabinets Installed for Customers
Virginia has ruled that a cabinet installer is a contractor, and not a retailer, for sales and use tax purposes, and must pay sales tax on its purchases of cabinets installed for customers. The taxpayer contended that it meets Virginia’s…
Installer Liable for Tax on Materials Installed for Exempt Entities in Wisconsin
An installer was liable for Wisconsin sales and use tax on materials that it installed for exempt entities that were purchased by the exempt entities from the installer\’s sister company.
Oklahoma Amends Rules Affecting Manufacturers
Oklahoma has made changes to sales and use tax rules affecting manufacturers. An amended rule states that a contractor or a subcontractor can purchase tangible personal property or services exempt from sales and use tax pursuant to a contract with…
Invoices Separately Stating Labor and Materials Taxable as Time and Materials Contract in Indiana
An excavation business\” sales of sand and gravel as part of improvements to realty are subject to Indiana sales tax because the sales occurred under time and materials contracts.
California Amends Regulation on Government Supply Contracts
California has amended a sales and use tax regulation regarding U.S. government supply contracts. The amended regulation provides that the term “retail sale” means a sale for any purpose other than resale in the regular course of business and provides…