Tax on labor

[ceknight]

In NY State if it is a capital improvement no sales tax is due on labor.

True.......so long as you have a properly-completed ST-124 on file for that particular job and the job actually qualifies as a capital improvement according to NYS.

Page 13 of http://www.tax.ny.gov/pdf/publications/sales/pub862.pdf has our run-down of what counts and doesn't, in case anyone's interested.

 

[hbiss]

In NY State if it is a capital improvement no sales tax is due on labor.

Actually the customer sees no sales tax on the entire job. You as the contractor pay sales tax on the material you purchase when you purchase it. What you charge the customer though will obviously include material + sales tax + markup + labor. This is the same way exempt organizations such as non-profits are handled for all sales in NY.

-Hal

 

[electrofelon]

True.......so long as you have a properly-completed ST-124 on file for that particular job and the job actually qualifies as a capital improvement according to NYS.

Practically everything (I do) is a capital improvement. I never charge sales tax. In the rare case that i do a repair where the new part is not an upgrade, Ill word the invoice to make it an upgrade. But yes good to clarify.