Contractors Responsible for Tax on Building Materials

Tuesday, May 2nd, 2017

 
 
Image of wall in the processes of being tiled.
Share
Link
New York
Construction

The New York Tax Appeals Tribunal recently ruled that a contractor was responsible for paying sales or use tax on materials it used in construction.

The taxpayer installed cabinets, countertops, tile, and other building materials in kitchens and bathrooms. It also made retail sales of materials. The taxpayer purchased all materials tax-free for resale. It then sold some materials at retail and used other materials to perform construction contracts. The taxpayer argued that it was a retailer and did not have to pay tax on any of the materials.

New York considers contractors to be the consumers of materials used in construction contracts. As the consumers, contractors must pay sales or use tax on the materials.

The taxpayer was acting as both a contractor and a retailer. It acted as a contractor when it performed construction contracts. As a result, the taxpayer was the consumer of materials used in those contracts and owed use tax on those materials.

https://www.ttrus.com/sites/default/files/ny/826105.dec.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...

Guided Hunting and Fishing Trips are Taxable in Washington

Wednesday, February 27th, 2019 -The Washington Department of Revenue recently published guidance stating that guided hunting and fishing trips...