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…
New York Issues Bulletin on Materialmen and Pay-when-Paid
The New York Department of Taxation and Finance has issued a bulletin discussing materialmen and the pay-when-paid option. Materialmen who make qualified sales to contractors may be able to postpone payment of the sales tax incurred until they receive payment…
Sign Manufacturer Treated as Contractor on Installed Signs in Texas
A taxpayer that manufactured signs was held to be a contractor for Texas sales tax purposes and as a result, was not eligible to claim a manufacturing exemption on its purchase of utilities, equipment, and materials used in manufacturing the…
Construction Materials Sold to Exempt Entity by a Subsidiary Taxable in Wisconsin
A Wisconsin Circuit Court has affirmed a Wisconsin Tax Appeals Commission decision holding that ceiling tiles and related construction materials sold to exempt entities by an installer’s wholly owned subsidiary were subject to Wisconsin sales and use tax. Generally, contractors…
Georgia Decreases Withholding Amount on Contracts with Nonresident Subcontractors
Georgia has enacted legislation that decreases the withholding requirement for general and prime contractors entering into contracts with nonresident subcontractors from 4% to 2%.
Platform Used to Contain Debris and Pollutants Exempt in New York
A painting business’ purchase and installation of a platform used to contain debris and pollutants when painting and coating a bridge was not subject to New York sales tax because the platform was a temporary facility at a construction site…
Tennessee Allows Tax Refund for Storm and Tornado Shelter Building Supplies
Purchasers of building supplies used to construct storm or tornado shelters are able to claim a refund of Tennessee sales and use tax paid on the items. The items must be purchased between July 1, 2011 and December 31, 2011,…
West Virginia Issues Guidance on Contractor Pass-Through Exemptions
West Virginia has issued guidance on amendments to the tax code section that governs a contractor’s right to assert exemptions to which the principal is entitled. The most recent amendment (S.B. 247, Laws 2011) allows contractors to, if the purchaser…
Installation Contract Taxable in Indiana Despite Lump-Sum Payment
An Indiana company\’s contracts for real property improvements were deemed to be time and materials contracts subject to sales tax, not nontaxable lump-sum contracts, despite the fact that customers paid the entire contract price when the contract was executed.
Connecticut Issues Guidance on 2011 Changes Affecting Nonresident Contractors
Connecticut has revised a special notice pertaining to amendments made in the 2011 session of the state general assembly affecting the requirement for nonresident contractors to provide bonds for sales and use tax and withholding tax purposes.
New Mexico Enacts Deductions for Construction-Related Services and Construction Equipment Leases
New Mexico has enacted legislation that provides a gross receipts deduction for construction-related services, provides a deduction for construction equipment leases, and expands deductions for manufacturing consumables. These deductions apply when the construction project is subject to the Gross Receipts…