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…
Sales of Vapor Extraction and Oxygen Injection Systems Exempt from Missouri Sales Tax
The sale of vapor extraction systems and oxygen injection systems by a Missouri firm to its clients is exempt from Missouri sales and use tax. Both systems are used to remove pollutants from contaminated groundwater. Equipment used “solely for the…
Texas Waste Hauler’s Services for Contractors Taxable
A Texas waste hauler that provides waste removal services for roofing contractors was denied a requested sales tax exemption based on receiving sale for resale certificates from the contractors. Texas law prohibits a contractor who performs a separated contract from…
North Dakota Discusses Contractors’ Sales and Use Tax Responsibilities
In a sales tax newsletter, North Dakota discussed contractors’ responsibility for the payment of sales and use tax on tangible personal property (TPP) used in executing a contract. As they are the final users of all personal property consumed or…
Florida Sales of Installed Countertops and Built-In Cabinetry Considered Improvements to Real Property
The Florida Department of Revenue has issued guidance concerning contracts to sell and install countertops and cabinets.
Virginia Countertop Sales and Installation are Taxable
A Virginia taxpayer disputed its classification on an audit as a real property contractor and maintained that it is a retailer of countertops, regardless of whether or not it installs the countertops. According to the Virginia Tax Commissioner, the countertop…
Nebraska Construction Contractor Taxability Guide Updated
On April 2, 2010, an updated sales and use tax checklist for construction contractors was released by the Nebraska Department of Revenue. The checklist describes the forms and the processes by which option 1, 2 and 3 contractors pay or…
Virginia Solid Surface Countertops Sales Taxable
As a result of an audit, a Virginia taxpayer issued a letter requesting correction of a retail sales and use tax assessment. According to the taxpayer, no use tax liability should have been assessed because its customers (wholesalers/contractors) charge sales…
Virginia Real Estate Contractor Liable for Taxon Purchases, Not Subcontractor
A Virginia residential building contractor is liable for the applicable use tax on its purchases of floating floors it purchased; not the subcontractor it utilized to install the flooring. Virginia law imposes tax upon purchases made by real estate construction…
Florida Installation Contract is Contract for the Improvement of Real Property
A Florida taxpayer\’s contract to install a commercial refrigeration system, purchased for a third party vendor, is considered a contract for the improvement of real property for sales and use tax purposes.
Louisiana Department of Revenue Ceases Issuing Contractor Certifications
The Louisiana Department of Revenue reminded taxpayers that the Contractor Registration Program will no longer issue new certifications beginning January 1, 2010.
Nebraska Explains the Taxability of Contractor Purchases
The Nebraska Department of Revenue has issued a contractor taxability checklist which provides the taxability of a contractor’s purchase of services as well as materials, consumables, and equipment. In addition, the checklist gives details on how option 1, 2, and…
Floor Coverings Purchased by Installer for Exempt Entities Deemed Taxable in Minnesota
A taxpayer, that sells and installs carpets and floor coverings, was found liable for use tax on its purchases of materials for contracts with exempt entities.
Purchases by Missouri Contractor Do Not Qualify for Resale Exemption
The Missouri Supreme Court has affirmed the Director of Revenue’s audit determination that a private jail facility operator’s purchases of inmate consumables pursuant to contracts with municipalities are subject to sales and use taxes. The jail operator argued that it…
Contractor’s Purchases From Out-of-State Vendors Taxable in New York
A carpet and flooring company and its owners were liable for New York use tax on purchases of materials and supplies from out-of-state vendors which were incorporated into capital improvements for customers in New York.