It is easy to have an unclear understanding of the way each state taxes construction. Each state taxes construction projects differently. We put together this handbook to help contractors and their customers understand state sales and use tax issues.
We analyzed the most costly areas of state sales and use tax for contractors and their customers during state tax audits to create an ebook that provides the basic definitions and the rudiments of how construction projects are taxed in the following jurisdictions:
If you are planning, fully engaged in, or recently finished with a construction project in one of the states explored, it would be worthwhile to confirm your understanding of applicable tax rules.
As companies increasingly emphasize the bottom line it becomes imperative that staff involved in construction projects avoid the incidence of both costly deficiency assessments and painful conversations in which management is informed a project costs more than expected due to sales or use tax expense.