- Sales tax in construction industry can be complicated due to different rules in each state
- Real property improvements are generally subject to sales tax, while tangible personal property may not be
- Contractors need to be aware of how different items are treated for tax purposes, such as HVACs, water heaters, lighting, and cabinets
- Audits can reveal discrepancies in how items are classified for tax purposes, leading to potential issues for contractors
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.
