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Sales Taxes - My company is being audited and I'm discovering the laws are so damn confusing. I had an extention built on the office building. The general contractor gave me a price and I paid progressive billings. The state is questioning if this is a taxable transaction that I have to pay sales tax on......I need your opinion.
Optional Information: State/Country relating to question: Texas
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.
Normally capital expenditures are NOT sales taxed. Let me double check because in NJ it would not be taxable.
Not sales taxed. see page 3 .
In the few states where services are presumed to be taxable, it is important to keep in mind that services in those states would follow the same taxable default rule as tangible personal property unless they are specifically made exempt by statute. In other words, in these taxable service states, a service isn't exempt just because it isn't identified in the statutes as taxable. The only exempt services in these states are those that are specifically identified as exempt. Listed below is a breakdown of the presumptions applicable to the forty-six taxable states:
1) Presumed "Taxable" Service States (4) - HI, NM, SD and WV
2) Presumed "Non-Taxable" Service States including DC (42) - AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MN, MS, NC, ND, NE, NJ, NV, NY, OH, OK, PA, RI, SC,
TN, TX, UT, VA, VT, WA, WI, and WY
http://www.cch.com/press/news/CCHWhitePaperTaxabilityOfServices.pdf
http://www.brownstoner.com/forum-archive/2007/08/capital-improve-1/
just documentation.
Experience: Financial Planner/Business Owner for 20+ years.
if you have no further questions I'll leave you to accept.
Enjoy the NO sales tax!!!