Are Contractors Exempt From Sales and Use Tax?

IT'S NOT THAT SIMPLE - LEARN THE EXCEPTIONS TO RULES BEFORE YOU OWE!

Charges by contractors for real property improvement services are typically exempt from sales and use tax while their purchases in fulfilling their contracts are subject to sales and use tax.

It may sound simple, but there are complications to this end-user/consumer rule. We highlight a few of them below and in-depth sales tax rules for contractors in this eBook:

• Sale and installation of tangible personal property vs. real property improvement
• Government, non-profit, and pass-through exemptions
• Accruing use tax on purchases including reciprocity