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 the real property would be subject to tax at the time purchased. (Decision No. 19969, Idaho State Tax Commission, July 30, 2007, received November 2007)

Posted on August 31, 2007