Sales & Use Tax for Construction Contractors

Author: Michael Bannasch

CPE Credit:  2 hours for CPAs

Sales and use tax for those in the construction industry can be very complex. Even those contractors who only do business in one state can face many issues in trying to determine whether they are performing a real property contract vs. a sale of tangible personal property with installation, dealing with project owners who are adamant their project is exempt, controlling their purchasing processes to make sure tax gets paid, and more. For contractors doing business in multiple states, the headaches grow exponentially because of many nuances in laws from state to state. This course will help you understand the issues contractors face in these areas and provide practical advice for how to best manage the issues.

Publication Date: February 2019

Designed For
CPAs in public practice or in industry who advise on or are responsible for sale/use tax matters in the construction industry.

Topics Covered

  • Overview of the industry issues for sales/use tax
  • General Rule — Contractors are Consumers
  • Dealing with Project Owner
  • Dealing with Purchasing
  • Real Life Horror Stories
  • Tying It All Together

Learning Objectives

  • Identify the need to first determine the status of their contract as one for real property vs. personal property
  • Recognize valid exemption claims by project owners
  • Describe how to implement procedures to proactively handle sales/use tax on their purchases of job materials and equipment
  • Differentiate statements regarding the general principles applicable to sales and use tax on construction projects
  • Identify best course of action for contractors to take
  • Recognize how various states treat contractors
  • Identify and apply the 4 steps outlining ways to make life easier
  • Recognize which items courts or statutes declined to deem personal property
  • Describe which type of purchases are almost always taxable
  • Identify when a sales tax consultant should be engaged

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A fundamental understanding of how state sales/use tax systems work.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $62.00

 Chat — Books Support