Contractors, Construction and Building Your Own Tax Exposure

Healy, John; Nelson, Bruce
May 2007
Journal of State Taxation;May/Jun2007, Vol. 25 Issue 4, p11
Academic Journal
Take it from us; there are dozens of careers with less anxiety, stress and potential problems than being a construction contractor. What with potential problems in materials supply, delivery holdups, wayward subs, liability risks, weather and contract disputes—the one thing contractors do not need are tax complications. And yet, the sales/use tax issues for contractors present some of the more perennially complicated issues in sales and use tax. The causes of these sales and use tax complications can be many, but generally the tax problems stem from one of three related issues: the nature of the work undertaken, the type of contract language used, and the different types of sales a contractor may make. Unfortunately, each of the issues is related to the others, so let's try to break them down.


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