The Nebraska Department of Revenue has amended three sales and use tax regulations dealing with contractors. Effective February 22, 2009, non-resident contractors only need to register contracts with the Department if the total contract price or compensation is greater than…
Construction of Above-Ground Steam Pipeline Constitutes Capital Improvement in New York
The New York Commissioner of Taxation and Finance issued an advisory opinion declaring that the construction of a taxpayer’s custom-engineered steam pipeline constituted a capital improvement for New York sales and use tax purposes. The pipeline was designed to deliver…
Alabama Trucking Company Held Liable for Tax on Construction Material Deliveries
A trucking company that contracted with customers to both furnish and deliver materials, was found to be reselling materials at retail. The trucking company contended that it was a construction contractor and that it correctly paid sales tax when it…
New York Basement Waterproofing System Taxability Discussed
A service company that repairs basement walls to seal cracks and prevent water damage is liable for New York sales tax. The company’s method of waterproofing basements is considered a taxable repair and therefore subject to sales tax. The company…
Virginia Construction Materials Purchased by Church Taxable
In a recent ruling, the State indicated that a church which was constructing a new religious facility was subject to Virginia sales and use tax for its purchases of construction materials. The church entered into an agreement with a general…
New Jersey Does Not Require Tax to be Separately-Stated in Multi-Trade Construction Contracts
A notice was issued by the New Jersey Division of Taxation stating that given the difficulty of itemizing taxable services and items in multi-trade construction contracts, this requirement will be waived when the following services are involved: landscaping, installing carpeting…
Wyoming Publishes Guidelines for the Construction Industry
The Wyoming Department of Revenue issued sales and use tax guidelines for the construction industry. Included in the publication is Wyoming’s definition of a contractor, which includes any person who owns or leases real property for the purpose of development…
New York Taxability of Construction Debris Cleaning and Removal
Services involving the removal of construction debris by subcontractors are not subject to New York sales tax as long as the service is part of or in conjunction with a capital improvement project. This exemption only applies to debris removed…
Certain Access Control Security System Components Deemed Capital Improvements to Real Property
Certain Access Control Security System Components Deemed Capital Improvements to Real Property
Texas Apartment Complex Common Area Repairs Analyzed
In a recent letter ruling, it was explained that contract labor charges for repairs, maintenance, and remodeling of apartment complex common areas are not subject to sales and use taxes, however, materials used on the projects are taxable. The contractor…
Idaho Issues Advice for Contractors
The Tax Commission will no longer allow contractors to substitute sales tax charged to the customer on improvements to real property for the tax owed on the purchase of building materials.
Labor and Materials Used in Real Property Improvements Taxable to Contractor, Not Owner in Missouri
The Missouri Director of Revenue has issued a letter ruling to a taxpayer in regards to charges for labor and materials used in improving real property.
Virginia Alters Treatment for Landscaping and Real Property Contractors
Virginia has changed its treatment of landscaping contractors. Previously, these contractors were viewed as retailers of the course of their business and collected sales tax from the purchasers of these items at the time of sale. Under the Virginia Tax…
Vermont Taxes Warehouse Racking Systems
In a Formal Ruling by the Vermont Department of Taxes, specially designed warehouse racking systems were found to be subject to Vermont sales and use tax. In this circumstance, a racking system was designed and manufactured by an out-of-state company…
Kansas Construction That Alters Building’s Use Is Subject to Tax
Construction services performed on a warehouse to alter its use were subject to tax, according to a Letter Ruling released by the Kansas Department of Revenue.
Florida: Supplies and Materials in Real Property Improvement Contract Taxable
The Florida Department of Revenue issued a Technical Assistance Advisement indicating that a taxpayer engaged in a lump sum real property improvement contract is considered…
Installation of Door Locks are Florida Real Property Improvements
The Florida Department of Revenue has issued a Technical Assistance Advisement clarifying that the replacement and re-keying of door locks are properly classified as improvements to real property for sales and use tax purposes.
Contractor Labor Now Exempt in Nebraska
The Nebraska Department of Revenue recently mailed a notice to nearly 6,500 contractors, building and trade associations, and others involved in the construction industry, explaining the sales and use tax changes relating to contractor labor.
Mississippi Amends Regulation Concerning Concrete and Asphalt Purchases by Contractors
The Mississippi sales and use tax regulation concerning construction contractors has been amended to reflect that any individual with a valid sales tax number who is buying concrete or asphalt to use in the performance of a taxable service is…
Building Materials Purchased by an Idaho Contractor Taxable
Work completed at a manufacturing plant was deemed subject to Idaho sales and use taxes because the work was an enhancement to real estate. The taxpayer was considered a real property contractor and, therefore, all materials purchased for incorporation into…
Mississippi Apartments and Condo Construction Subject to Contractors’ Tax
Effective July 1, 2007, individuals involved in contracting to construct, repair or improvement apartment buildings or condominiums will be subject to contractors\’ tax.
Idaho Authorizes Rebates to Repay Developers for Construction Costs
A developer who provides qualifying transportation improvements may claim a rebate of 60% of Idaho sales or use tax taxes.
Florida Contractors Liable for Taxes on Murphy Beds
Murphy bed sales and installation are taxable for Florida sales and use tax.
Subcontractor Must Present Exemption Certificate at Time of Sale in Texas
A subcontractor building a sanctuary for a church was ordered to pay sales tax on items purchased from a supplier. The subcontractor, although claiming to have informed the supplier of the tax-exempt status of the project, did not provide the…