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Angie
Angie, Tax Preparer
Category: Tax
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Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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Are materials sold to a cabinet maker subject to Florida

Customer Question

Are materials sold to a cabinet maker subject to Florida sales/use tax where the cabinet maker has an independent contractor install them in a residence under construction?
Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.

If you pay sales tax on the materials when they are purchased, you can build this into the overall cost of materials and pass the total on to the customer.

However, Florida refers to this as use of materials.... and
Tax is due on the use of goods by the contractor. The contractor is responsible for the tax if sales tax was not paid at the time of purchase.
Contractors may manufacture or fabricate a finished product from raw materials for use in a contract. Contractors owe tax on the manufactured cost of such products. For example, a cabinet maker/installer must pay sales tax on the manufactured cost of the cabinet.
If a contractor fabricates a product at the job site, fabrication labor is exempt from tax. Only the cost of the materials is subject to tax.

You can find that information here: dor.myflorida.com/Forms_library/current/gt800067.pdf

Expert:  Angie replied 1 year ago.

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