Sales and use taxes – Evaluate your exposure before you bid

Description

Abstract: Contractors doing business across state lines shouldn’t assume that other jurisdictions will tax their business the same way it’s taxed at home. For example, most states treat contractors as the ultimate consumers of building materials, but some regard them as retailers; the tax treatment will differ accordingly. And sales and use tax treatment will also vary from state to state for projects involving nonprofits and government entities. This article discusses how just one misstep can quickly turn a potentially profitable job into a money loser.