Materials Incorporated into Real Estate. Sales of tangible personal property are taxable. For example, if a contractor purchases roofing material in Texas for a Texas project, the purchase is subject to the Texas sales tax.
[It's complicated (PDF warning).](https://www.texastaxsection.org/uploads/10%20TLD%20SUT%20for%20Construction.pdf)
> Materials Incorporated into Real Estate. Sales of tangible personal property are taxable. For example, if a contractor purchases roofing material in Texas for a Texas project, the purchase is subject to the Texas sales tax.
I'm still pretty sure that there's no double taxation; IOW the contractor doesn't pay the tax on the materials to the store and then charge the property owner for sales tax on the entire job.
Edit: I should say, not supposed to. Contractor could be an idiot or lazy or not a real contractor and charging sales tax that will never actually be paid to the state.
I'm still pretty sure that there's no double taxation; IOW the contractor doesn't pay the tax on the materials to the store and then charge the property owner for sales tax on the entire job.
Edit: I should say, not *supposed to*. Contractor could be an idiot or lazy or not a real contractor and charging sales tax that will never actually be paid to the state.
Believe it or don't, but it's the reality of my occupation so I know it firsthand...
Believe it or don't, but it's the reality of my occupation so I know it firsthand...
(post is archived)