Massachusetts Kitchen Remodeler Not Required to Collect Tax

Classic Kitchens, Inc. v Commissioner of Revenue found that a kitchen remodeling business was not required to collect tax on partially constructed cabinets and countertops. The company was considered a construction contractor and therefore the ultimate user of the products because the cabinets and countertops required more than simple installation. Title for the cabinets and countertops did not pass to the customer until they had undergone alterations, finishing work, and installation and therefore lost their status as tangible personal property. Classic Kitchens, Inc acted correctly in paying tax on the purchase of the cabinets and countertops from a third- party vendor. (Massachusetts Appellate Tax Board, No. C262393, March 15, 2004)

Posted on May 15, 2004