- Contractors are typically considered end-users/consumers of tangible personal property
- Charges for real property improvement services are usually exempt from sales and use tax
- Once tangible personal property is affixed to real property, it becomes real property
- Difficulty in determining when tangible personal property becomes real property
- Different states treat transactions differently for sales and use tax purposes
- Exceptions to sales tax rules for contractors, such as exemptions for government agencies or nonprofit organizations
- Pass-through exemption allows contractors to purchase tangible personal property exempt from sales and use tax
- Documentation required to qualify for exemptions varies by state
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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