SN 9223 Sales and Use Taxes on Certain Renovation and Repair Services to Residential Real Property (2022)

This information is not current and is being provided for reference purposes only

SN 92(23)

Sales and Use Taxes on Certain Renovation and
Repair Services to Residential Real Property

This publication has been obsoleted byIP 99(19)andAN 2000(8)

PURPOSE: This Special Notice describes changes made by 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.) treating as sales subject to the sales and use taxes the following renovation and repair services provided to renovation and repair services provided to residential real property: paving, painting or staining, wallpapering, roofing, siding and exterior sheet metal work.

EFFECTIVE DATE: Effective upon issuance and applicable to the provision of such renovation and repair services to residential property on or after October 1, 1991.

STATUTORY AUTHORITY: Conn. Gen. Stat. §12-407(2((i)(DD), as amended by 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.) and Conn. Agencies Regs. §12-407(2)(i)(I)-1.

GENERAL RULES: The gross receipts from paving, painting or staining, wallpapering, roofing, siding and exterior sheet metal work provided in the renovation and repair of residential property are treated as sales subject to the Sales and Use Taxes Act as of October 1, 1991. "Residential property" means real property used exclusively for residential purposes and includes rental property consisting of three or fewer dwelling units, one of which is owner-occupied.

Any other rental property is considered to be income-producing property, and the provision of renovation and repair services to income-producing property, where the cost of such renovations or repairs were capitalized for federal income tax purposes, has been treated as a sale subject to the Sales and Use Taxes Act since July 1, 1989. The provision of such services to income-producing property, where the cost of such renovations or repairs were not capitalized for federal income tax purposes, has been treated as a sale subject to the Sales and Use Taxes Act since July 1, 1975.

"Renovation" means the making of permanent improvements or betterments which increase the value of and prolong the life of the existing residential property. "Repair" means the mending, restoring or maintaining of existing residential property.

SCOPE OF TAXABLE RENOVATION AND REPAIR SERVICES PROVIDED TO RESIDENTIAL PROPERTY:

  • PAVING involves covering the ground with a hard smooth surface such as asphalt, tar, macadam and concrete. Paving includes the replacement of sections or the complete repaving of driveways, parking areas and walks, and tennis or basketball courts. Paving services also include all work performed in preparation for paving, where performed as part of the entire job, as well as the subsequent sealing or dressing of the pavement. Paving does not include driveways, parking areas and walks that are covered with materials such as crushed stone, crushed stone with oil, or gravel. Under Conn. Agencies Regs. §12-407(2)(i)(I)-1(c)(2), paving also does not include the initial paving done in the construction of roads, parking areas and walks.

  • PAINTING OR STAINING includes the painting or repairing and the staining or restaining of all interior and exterior surfaces for decoration, protection or preservation purposes. Such services also include all necessary surface and other preparations, where performed as part of the entire job, prior to the actual painting or staining, such as sanding, planing, puttying, taping and spackling as well as the application of sealants, waterproofing or other types of protective finishing.

  • WALLPAPERING means the application of wallpaper or wall fabric to the interior walls and ceilings. Such services also include all necessary surface and other preparations, where performed as part of the entire job, prior to the wallpapering, such as removing old wallpaper, steaming, puttying, taping, spackling and sizing.

Persons who provide interior decorating and design services (which are not longer taxable services) and who are not retailers of tangible personal property may purchase wallpapering services on a resale basis if they resell them to their customers without charge and if they hold a seller's permit as retailers of taxable services. They must separately state such services on the invoice to their customer and charge tax on the wallpapering portion of their bill.

Persons who provide interior decorating and design services and who are retailers of tangible personal property may purchase wallpapering services on a resale basis if they resell them to their customers without charge. They must separately state such services on the invoice to their customer and charge tax on the wallpapering portion of their bill. If they themselves provide wallpapering services to their customer, they must follow the same separate statement requirements.

  • ROOFING includes the replacement of a part of or an entire roof and the repair or spot replacement on all types of roofs (asphalt, shingle, slate, tile, built-up, metal, single ply, etc.). The replacement of roof rafters, their plywood, wood or other covering, ventilation work, expansion joints, flashings, metal or composition valleys, rain and draft deflectors, drip edges, snow guards and snow slides are considered to be integrally related to the roofing services bargained for by the residential property owner and are subject to tax whether performed by a roofing contractor or by a carpenter. Roofing services also include all work performed in preparation for roofing, where performed as part of the entire job.

Roofing does not include the initial installation of new gutters or the replacement of old gutters on existing residential property, the repair of chimneys, the cleaning of all types of roof systems such as gutters, downspouts, drains, etc., and the repair or replacement of items such as copyings, cornices, electric heating tape, gravel stops and fascias, gutters and downspouts systems, heating cables, louvres and screens, metal ornaments, metal stacks and skylights. (NOTE: Some of these services, such as cleaning of gutters, downspouts and drains, are taxable as maintenance services, and all repair or renovation work on roofs, involving exterior sheet metal work, including metal downspouts and gutters, is subject to tax.)

  • SIDING includes the installation, replacement and repair of all types of siding including aluminum, vinyl, stucco, brickface, shingles, clapboards, shakes and other wood coverings. The replacement or repair of an outside wall or wallcovering, such as insulated board or plywood sheathing, done in connection with siding is considered to be integrally related to siding and is subject to tax. Siding services also include all work performed in preparation for siding, where performed as part of the entire job.

When siding involves the repair or installation of windows, the charge for the window work is not subject to tax so long as it is separately stated on the bill to the customer. Incidental siding done in connection with window installation, replacement, or repair is not subject to tax.

  • EXTERIOR SHEET METAL WORK includes the installation or the forming of and the subsequent installation or repair of sheet metal, such as tin, aluminum, steel or copper, when used on the exterior of residential property, including sheet metal downspouts and gutters. Exterior sheet metal work services also include all work performed in preparation for exterior sheet metal work services, where performed as part of the entire job.

NEW CONSTRUCTION: When provided in the construction of a new building or in the expansion of an existing building by the addition of new cubic footage under Conn. Agencies Regs. §12-407(2)(i)(I)-1(c)(1), or in the making of improvements to real property that put the property affected to a new use under Conn. Agencies Regs. §12-407(2)(i)(I)-1(c)(2), the services described in this Special Notice are not considered to be renovations or repairs and are not subject to tax. When provided in connection with a project involving both the renovation and repair of residential property and new construction, the total charge for such services will be treated as a sale subject to the Sales and Use Taxes Act unless the portion of the charge for the services attributable to new construction is separately stated on the service provider's invoice to the property owner. The service provider must maintain adequate records (e.g., building permits and applications therefor) to substantiate that the portion of the charges attributable to the taxable renovation or repair service has not been understated.

NONTAXABLE SERVICES PERFORMED IN CONJUNCTION WITH TAXABLE SERVICES: Nontaxable services, such as architectural or engineering services, performed in connection with taxable renovation and repair services are not subject to tax when separately stated on the bill or invoice to the services recipient.

PURCHASE OF MATERIALS ON RESALE: Persons providing the services of paving, painting or staining, wallpapering, roofing, siding and exterior sheet work to residential property are considered to be contractors under Conn. Agencies Regs. §12-426-18(a). Contractors are consumers of materials used in providing their services and are retailers of services. Contractors must pay tax on their purchase of materials used in fulfilling the following types of contracts:

  • Lump sum or fixed fee contracts providing for a single price for the total work to be performed on a construction project. Such contracts are generally not subject to adjustment because of higher than anticipated costs incurred by the contractor.

Contractor agrees to put aluminum siding on Homeowner's house for $5,000. Contractor cannot charge extra even if more materials are used than expected or the job takes longer to complete than expected. Contractor cannot buy materials on a resale basis because Contractor and Homeowner have entered into a lump sum or fixed fee contract.

  • Cost-plus contracts providing for reimbursement of allowable or otherwise defined costs incurred plus a fee representing profit. Cost-plus contracts usually require that the contractor use his best efforts to accomplish the scope of the work within a specified time and a stated dollar limitation.

Contractor agrees to put aluminum siding on Homeowner's house. The contract calls for Contractor to be reimbursed by Homeowner for the cost of materials used and labor costs plus 15% with the work to be performed by a specific date and a maximum number of hours allocated to labor. Contractor cannot purchase materials on a resale basis because Contractor and Homeowner have entered into a cost-plus contract.

  • Time and material contracts with an upset or guaranteed price which may not be exceeded providing for payments to the contractor on the basis of direct labor hours at fixed hourly rates (that cover the cost of direct labor and indirect expenses and profit) and the cost of materials and other specified costs. Such contracts compensate the contractor's performance on the basis of the effort expended in fulfilling the contract with guaranteed maximum costs.

Contractor agrees to put aluminum siding on Homeowner's house and to be reimbursed at a rate of $75 per hour plus the cost of materials, with the entire cost to the Homeowner for time and materials not to exceed $2,500. Contractor may not purchase the materials or supplies using a resale certificate because Contractor and Homeowner have entered into a time and materials contract with an upset or guaranteed price which may not be exceeded.

Under Conn. Agencies Regs. §12-426-18(b), a contractor may act as a retailer of materials, and may purchase those materials on a resale basis, in two extremely limited situations:

  • The contractor specifically invoices the Homeowner for particular materials, stating the charge for and the amount of the materials being sold to the Homeowner. In addition, the contractor agrees to render services in connection with the sales of materials, for an additional agreed price or on the basis of time consumed. However, if the contract is a lump sum contract, a cost-plus contract or a time and material contract with an upset or guaranteed price which may not be exceeded, the contractor may not purchase the materials on a resale basis.

Contractor agrees to sell Homeowner 3,000 feet of siding at $1.00 per foot and, at a rate of $75 per hour, to install it on Homeowner's house. Contractor estimates that the time to complete the job will be 60 hours but the Homeowner is obligated to pay more if the time exceeds 60 hours and is entitled to pay less if the time is less than 60 hours. Contractor may purchase the materials on a resale basis, because Contractor is rendering services in connection with the sales of materials and because the contract is not a lump sum contract, a cost-plus contract or a time and material contract with an upset or guaranteed price which may not be exceeded.

HOW GENERAL CONTRACTORS MUST CHARGE TAX TO RESIDENTIAL PROPERTY OWNERS ON TAXABLE RENOVATION AND REPAIR SERVICES: Where the contractor has paid tax on the purchase of the materials physically incorporated into and becoming a permanent part of the residential property, the contractor's bill to the residential property owner shall either:

  • separately state the cost of such materials and the charge for services, expressly noting that tax has been paid by the contractor on the materials (with words such as "tax paid on materials") and charging tax only on the charge for services; or

  • state only the total charge together with the words "tax included," without separately stating the cost of such materials and the charge for services or the tax on the charge for services, and maintain records that show that the taxon the charge for services was built into the total charge, and was calculated on the total charge less the cost of such materials and, where appropriate, the tax paid thereon. The contractor must maintain adequate records to account for the payment of tax on the materials.

Where the contractor has not paid tax on the purchase of the materials physically incorporated into and becoming a permanent part of the residential property, the contractor's entire charge to the residential property owner is taxable.

As used herein, the charge for services includes the cost of labor, mark-up on materials and labor, overhead and profit.

The contractor is engaged as a permittee in the business of selling such materials at retail. In order to be considered engaged as a permittee in the business of selling materials at retail, the contractor must be a person required to be issued a seller's permit for a place of business (e.g., a lumberyard) at which sales of such materials are made. The contractor will be held strictly accountable for the payment of use tax on any materials that are removed from inventory and are not sold at retail but, instead, are used in fulfilling a lump sum contract, a cost-plus contract or a time and material contract with an upset or guaranteed price which may not be exceeded contract.

RESALE OF RENOVATION AND REPAIR SERVICES: Renovation and repair services may be purchased on a resale basis if they are being resold without change to another renovation and repair service provider. Under Conn. Agencies Regs. §12-407-(2)(i)(I)-1(i)(1), a service provider performing services to real property is permitted to accept or refuse to accept a resale certificate from a person who will resell such services to the owner of the real property. Thus, where a subcontractor sells a taxable renovation and repair services to a general contractor who in turn will resell those services to a residential property owner, the subcontractor may accept or refuse to accept a resale certificate from a person who will resell such services to the owner of the real property. Thus, where a subcontractor sells taxable renovation and repair services to a general contractor who in turn will resell those services to a residential property owner, the subcontractor may accept or refuse to accept a resale certificate from the general contractor.

HOW SUBCONTRACTORS MUST CHARGE TAX TO GENERAL CONTRACTORS ON TAXABLE RENOVATION AND REPAIR SERVICES: Where a subcontractor has paid tax on the purchase of materials physically incorporated into and becoming a permanent part of the residential property and,

  • a resale certificate is accepted by the subcontractor, the subcontractor should separately state the cost of such materials on its invoice to the general contractor and indicate that tax has been paid on such materials by the subcontractor (with words such as "tax paid on materials"). The general contractor should ultimately charge tax to the residential property owner only on the subcontractor's charge for services.

  • a resale certificate is not accepted by the subcontractor, the bill or invoice from the subcontractor to the general contractor shall either:

    • separately state the cost of such materials and the charge for services, expressly noting that tax has been paid by the subcontractor on the materials (with words such as "tax paid on materials") and charging tax only on the charge for services; or

    • state only the total charge together with the words "tax included," without separately stating the cost of such materials and the charge for services or the tax on the charge for services, and maintain records that show that the tax on the charge for services was built into the total charge, and was calculated on the total charge less the cost of such materials and the tax paid thereon. Thus, the charge for services includes any markup on materials, overhead or profit.

Where a subcontractor has not paid tax on the purchase of the materials physically incorporated into and becoming a permanent part of the residential property, and,

  • a resale certificate is accepted by the subcontractor, the subcontractor should separately state the cost of such materials on its invoice to the general contractor and indicate that tax has not been paid on such materials by the subcontractor (with words such as "tax not paid on materials"). The general contractor should ultimately charge tax to the residential property owner on the subcontractor's entire charge to the general contractor.

  • a resale certificate is not accepted by the subcontractor, the bill or invoice from the subcontractor to the general contractor shall either:

    • separately state the cost of such materials and the charge for services, charging tax on the total charge; or,

    • state only the total charge together with the words "tax included," without separately stating the cost of such materials and the charge for services or the tax on the charge for services and such materials, and maintain records that show that the tax on the charge for services and such materials was built into the total charge.

SERVICES CONTRACTED FOR BEFORE OCTOBER 1, 1991: When contracted for prior to October 1, 1991 and rendered after October 1, 1991, renovation and repairs to residential property involving paving, painting or staining, wallpapering, roofing, siding and exterior sheet metal work services shall be treated as sales subject to the Sales and Use Tax Act, regardless of when payment for such services was made. Payments made subsequent to October 1, 1991 for services provided before October 1, 1991 are not subject to tax as long as the invoice indicates when the services were performed.

REGISTRATION: All persons providing the services described in this Special Notice must register with the Department of Revenue Services for purposes of the Sales and Use Taxes Act by completing a Form REG-1, Application for Tax Registration Number. All persons purchasing the services described in this Special Notice from an unregistered service provider must self-assess Connecticut use tax on such services using the Form OS-114 (Sales and Use Tax Return) if the service recipient is using those services in carrying on a trade, occupation, business or profession, and using the Form OP-186 (Individual Use Tax Return) if the service recipient is not using those services.

SPECIAL REQUIREMENTS FOR NONRESIDENT CONTRACTORS: Under Conn. Gen. Stat. §12-430(7), a nonresident contractor, as defined in Conn. Agencies Regs. §12-430(7)-1, providing services described as sales by this Special Notice is required, at the time of entering into the contract, to:

  • deposit with the Commissioner a sum equivalent to 3% of the total amount to be paid under the contract; or

  • furnish the Commissioner with a guarantee bond for a similar amount and obtain certification from the Commissioner that the bond requirements have been met. Residential property owners who do not obtain a copy of the Commissioner's certification from the nonresident contractor shall be personally liable for the payment of any taxes payable with respect to tangible personal property consumed or used pursuant to or in the carrying out of such contract.

EFFECT ON OTHER DOCUMENTS: LSN-91 is superseded and may not be relied upon with respect to renovation and repair services involving paving, painting or staining, wallpapering, roofing, siding and sheet metal work provided to residential property on or after October 1, 1991.

SN 92(23)
Sales and use taxes
Issued 12/8/92

FAQs

Are repair services taxable in North Carolina? ›

Services in North Carolina are generally not taxable, with important exceptions: if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.

Are handyman services taxable in CT? ›

Sales of certain services such as repair and maintenance are subject to tax for all types of real property.

Are repair services taxable in Florida? ›

Sales Tax Rate on Repairs

Most repairs are subject to Florida's general state sales tax rate of 6% and any applicable discretionary sales surtax (local option tax). Discretionary sales surtax rates vary by county.

Are repair services taxable in New York? ›

Introduction. A contractor or subcontractor must charge sales tax to its customers if the work performed is repair, maintenance, or installation work.

Are handyman services taxable in NC? ›

The handyman is a retailer and is liable for and should collect sales tax on the total sales price of the repair, maintenance, and installation service.

What services are exempt from service tax? ›

General Service Tax Exemptions

Any service that is offered to any international organisation or to the United Nations is exempt from service tax. Any service that is offered to units of Special Economic Zones or to Special Economic Zone developers is exempt from service tax.

Are repair services taxable in Connecticut? ›

A maintenance, repair or warranty contract purchased in Connecticut shall be taxable at the tax rate that applies to sales of services described in section 12-4072idd of the general statutes, even if the motor vehicle, aircraft or vessel is purchased exempt or at a reduced rate of tax by a nonresident of Connecticut.

How does a handyman pay taxes? ›

As a self-employed handyman, you have to pay self-employment tax on your net profit. This tax — currently set at 15.3% — includes amounts to fund Social Security and Medicare. Complete and attach Schedule SE, Self-Employment Tax to your Form 1040 to calculate the amount of self-employment tax you owe.

Do I need to 1099 my handyman? ›

Remember, however, that a 1099-MISC need be filed only when an independent contractor's services are performed in the course of your trade or business. A trade or business is an activity carried on for gain or profit. You don't have to file a 1099-MISC for payments for non-business related services.

Are real property repairs taxable in Florida? ›

Sale/Repair of Real Property: The sale or repair of “real property” is not subject to sales tax to the customer. The seller is considered the final consumer of the tangible personal property used in the contract.

Do painters charge sales tax in Florida? ›

QUESTION: WHETHER THE PAINTING SERVICES/INSTRUCTIONS ARE SUBJECT TO FLORIDA SALES TAX. ANSWER: TAXPAYER'S PAINTING SERVICES/INSTRUCTIONS ARE NOT SUBJECT TO FLORIDA SALES TAX.

What services are exempt from sales tax in Florida? ›

Sales Tax Exemptions in Florida

Certain groceries, any prosthetic or orthopedic instruments, any remedies which are considered to be common household remedies, any seeds and fertilizers, and any cosmetics are considered to be exempt in the state of Florida.

What services are exempt from sales tax in New York? ›

Sales tax also does not apply to most services. Examples of services not subject to sales tax are capital improvements to real property, medical care, education, and personal and professional services.

Do painters charge sales tax in NY? ›

As a contractor, you generally must pay sales tax to your suppliers when you buy materials and supplies, and you must collect sales tax on certain jobs you perform for your customers.
...
Paint$50.00
Sales Tax @ 8%4.00
Total$54.00
5 May 2020

What counts as repairs and maintenance for taxes? ›

Repairs fall into this category if they: Fix a defect that existed before you bought the property. Fix a defect that happened while the property was being made or built. Enlarge or expand the property so that it has more capacity.

What is a handyman allowed to do in North Carolina? ›

in North Carolina are authorized to work on residential and commercial projects with a value that exceeds $30,000. This work includes demolitions, structural repairs, and installations. Subcategories of the general contractor license are limited, intermediate and unlimited.

Is installation labor taxable in NC? ›

Effective March 1, 2016 NC imposes the general 4.75 state rate of sales and use tax on repair, maintenance, and installation services sold at retail and sourced to the state. The applicable local (2% or 2.25%) and applicable transit (.

Can contractors charge sales tax in NC? ›

The general contractor, as real property contractor, is liable for sales and use tax on the purchase price of all tangible personal property (building materials, etc.) to fulfill the real property contract.

Is it mandatory to give service tax? ›

It is not mandatory under Indian consumer laws, according to the consumer affairs ministry. Service charge is a global practice, eateries say.

Can you refuse to pay service tax? ›

In 2017, the government had said, "As per the approved guidelines on service charge, service charge is totally voluntary and not mandatory now. Hotels and restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of the customer."

Do you have to pay tax on service charge? ›

If the service charge is voluntary, you'll pay tax on and National Insurance on the amount. This is done in the same way you would for any other tip. If it's compulsory, then the money is not classed as a tip. If your employer gives you a share of the service charge, it's treated the same way as receiving your wage.

Does CT charge sales tax on labor? ›

Are services subject to sales tax in Connecticut? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Connecticut, specified services are taxable.

What services are subject to sales tax in CT? ›

  • Cosmetic medical procedures.
  • Credit information and reporting.
  • Dry Cleaning and laundry services. ...
  • Employment agencies and agencies providing personnel services. ...
  • Exterminating services. ...
  • Flight instruction and chartering by a certificated air carrier. ...
  • Furniture reupholstering and repair services.

Is there CT sales tax on home improvements? ›

Connecticut building contractors and out-of-state contractors performing services in Connecticut are generally required to collect sales tax on their sales.

What is the most a handyman can charge? ›

Most handymen charge between $50 and $80 per hour, making an average of $150 to $600 per job. Rates depend on their specialty, experience, level of education, and whether the handyman is insured, requires specialized equipment, or services rural locations.

What is the IRS code for handyman? ›

Or handyman construction services? Home improvement/home renovation? etc? If so, see if 236118 is close to anything that you do.

Do you tip a self-employed handyman? ›

Here are Smith's guidelines: Don't tip skilled craftsmen or technical specialists, such as plumbers, electricians, painters, alarm service technicians, handymen, piano tuners, or appliance repair people. “That's like trying to tip a doctor or a teacher,” Smith says.

What happens if I don't issue a 1099 to a contractor? ›

The penalty is $260 per return. However, if the IRS determines that you have intentionally disregarded this filing, the penalty increases to a staggering $530 per return. In some cases of intentional disregard, the IRS can also tack on additional penalties. Ouch.

How much can you pay someone without a 1099? ›

You are required to complete and send a 1099-NEC form to any independent contractors or businesses to whom you paid over $600 in fees, commissions, prizes, awards, or other forms of compensation for services performed for your business. However, there are some exceptions to who needs to receive one of these forms.

What happens if you don't file a 1099 for a contractor? ›

If it appears the income was not reported, or if a tax return was not filed, the IRS could write to your subcontractor to collect the taxes not paid on the income. This is an essential tool to enforce compliance with our tax laws.

Can you claim home renovations on your taxes? ›

When you make a home improvement, such as installing central air conditioning or replacing the roof, you can't deduct the cost in the year you spend the money. But, if you keep track of those expenses, they may help you reduce your taxes in the year you sell your house.

What are considered home improvements for tax purposes? ›

“According to IRS Publication 523, to qualify as an improvement, the task must add value to your home, adapt it to new uses, or prolong its life. If repair-type work is part of the overall improvement, you may include it.”

Do home improvements go on taxes? ›

Home improvements on a personal residence are generally not tax deductible for federal income taxes. However, installing energy efficient equipment may qualify you for a tax credit, and renovations for medical purposes may qualify as tax deductible.

Are architectural services taxable in Florida? ›

The entire amount of the design fee is taxable at the time of the first sale of tangible personal property, the sales price of which includes that service.

How much do painters charge in Florida? ›

In Florida, painters charge $2 to $4.50 per sq. ft., $25 to $125 per hour, or $200 to $500 per day.

Are interior design services taxable in Florida? ›

Interior Design Services

Fees or charges by interior decorators or interior designers for design services that are part of the sale of tangible personal property are taxed as part of the sales price. See Rule 12A-1.001(2), Florida Administrative Code (F.A.C.), available at flrules.org.

Which transactions are considered tax exempt? ›

Understanding Exempt Transactions
  • An insurance company, bank, business development company, small business investment company, or registered investment company.
  • An employee benefit plan administered by a bank registered investment company, or insurance company.
  • A tax-exempt charitable organization.

Do I charge sales tax on cleaning services in Florida? ›

In summary, nonresidential cleaning services are subject to sales tax in Florida unless otherwise exempt.

What qualifies as tax exempt in Florida? ›

What is exempt? Purchases and leases of items or services directly by, and rentals or leases of real property and living or sleeping accommodations directly to, a qualified nonprofit governing or administrative office used in carrying on its customary nonprofit religious activities.

What are exempt services? ›

Examples of exempt goods and services

Usually, it applies to what the government considers essential services. Some common examples of exempt items include financial services, sporting activities and physical education, some medical treatments, education and training, postal services, artwork and burial.

What are the exempted sales? ›

Exempt sales are based on the business or entity making the purchase. This means that the business or entity making the purchase is exempt from paying sales tax. Refer to this guide for common reasons that a business would be exempt from paying sales tax.

What requires sales tax in NY? ›

Sales tax applies to retail sales of certain tangible personal property and services. Use tax applies if you buy tangible personal property and services outside the state and use it within New York State.

Are architectural services taxable in NYS? ›

Sales to, or uses by, licensed architects and engineers

Drawings, plans, renderings, and other interior decorating and design services sold to a licensed architect or engineer are taxable, unless the services will be resold or used by the architect or engineer in performing a taxable decorating or design service.

How much do painters charge in NY? ›

Costs to Paint an Apartment in Manhattan Per Square Foot.
Painting CompanyTotal Price, est.Price per sq.ft
Broadway Painters BroadwayPainters.com$2,650$5.71
Paintzen Paintzen.com$4,928$10.62
Metro Painting Metro-painting.com$4,682$10.09
Precision Painting Plus Precisionpaintingplus.net$3,810$8.21
5 more rows
16 Jul 2020

Is flooring taxable in NY? ›

Section 541.14 - Floor covering (a) (1) The installation of floor covering is subject to sales tax, regardless of the method of installation or the surface over which the floor covering is installed, unless the installation qualifies for exemption under subdivision (b) of this section.

How do you prove home improvements without receipts? ›

A: You can deduct any home improvements that you can prove. You don't necessarily need receipts; photos, contracts, statements from contractors, or affidavits from neighbors, may be enough to convince the IRS that you actually did work. Remember the classic song "Give my regards to Broadway"?

How do I record a repair and maintenance expense? ›

To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a journal entry. A debit increases an expense account. Credit either the cash or accounts payable account by the same amount depending on how you will pay for the expense.

What is the difference between repairs and maintenance? ›

However, the difference between repair and maintenance work is that repairs aim to restore functionality while maintenance looks to preserve functionality. Put simply, repairs are done after downtime to minimize losses, while maintenance is done to prevent unexpected asset downtime.

Are construction services taxable in North Carolina? ›

Construction projects can be taxed under North Carolina sales and use tax in one of two ways: (a) as a real property contract (“RPC”) or (b) as a repair, maintenance, and installation service (“RMI”).

Is electrical work taxable in North Carolina? ›

Gross receipts derived from sales of electricity are subject to the 7.00% combined general rate of sales and use tax and are to be reported to the Department on Form E-500E, Combined General Rate Sales and Use Tax Return.

Are maintenance contracts taxable in North Carolina? ›

In the state of North Carolina, an item which is used to maintain or repair tangible personal property pursuant to a service contract is considered to be exempt, so long as the purchaser of the contract is not charged for the item.

Is labor subject to sales tax in NC? ›

Are services subject to sales tax in North Carolina? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In North Carolina, specified services are taxable.

Do you charge sales tax on services in South Carolina? ›

Sales tax is imposed on the sale of goods and certain services in South Carolina. The statewide sales and use tax rate is six percent (6%). Counties may impose an additional one percent (1%) local sales tax if voters in that county approve the tax. Generally, all retail sales are subject to the sales tax.

Can a handyman do electrical work in NC? ›

The North Carolina licensing board restricts the types of services that handyman professionals are authorized to provide. Handyman professionals are not authorized to perform electrical work, HVAC installation/repair/maintenance, demolitions, structural work, or plumbing services without the appropriate licenses.

Do I need a permit to add an electrical outlet in North Carolina? ›

According to Mecklenburg County Code Enforcement, if you intend to make any repair, installation, change, or extension to the electrical, mechanical, or plumbing systems, you require a permit.

Are capital improvements subject to sales tax in North Carolina? ›

Generally, the purchase price of tangible personal property or digital property that becomes part of or is applied to a purchaser's property as part of a capital improvement or used to provide an exempt repair, maintenance, or installation service is generally subject to sales and use tax.

Can I deduct home renovations on my taxes? ›

When you make a home improvement, such as installing central air conditioning or replacing the roof, you can't deduct the cost in the year you spend the money. But, if you keep track of those expenses, they may help you reduce your taxes in the year you sell your house.

Is repair labor taxable in South Carolina? ›

Are services subject to sales tax in South Carolina? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In South Carolina, specified services are taxable.

Do you pay tax on maintenance? ›

Maintenance payments are always tax-free income in the hands of the recipient, irrespective of the amount paid and regardless of whether tax relief is received or not.

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