How Sales Tax Impacts Contractor Pricing and Profit Margins

How contractors bill customers for sales tax on construction services or leasehold improvements
depends on the specific project, the state’s tax laws, and how the contractor structures the billing.
Rules differ significantly for materials, labor, and the nature of the work performed.

Common Scenarios Affecting Sales Tax:

• Repair, maintenance, and installation projects
• Capital improvements
• New construction
• Residential and nonresidential property
• Exempt organizations
• Manufacturing plant projects

For a deeper multi-state understanding of your sales tax obligations—whether you’re a contractor
or a customer—please contact:

Paul Naehle
(Email | 📞 857-299-7877)
Wayne Britton
(Email | 📞 857-216-7807)