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Is inerior hame remodeling a real property contract for s& u…

Is inerior hame remodeling a...
Is inerior hame remodeling a real property contract for s& u tax? can you give me a cite for this?
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Answered in 20 minutes by:
3/12/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
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"remodeling a real property" is generally classified as a construction contract.

See here

http://codes.ohio.gov/oac/5703-9-14

A "construction contract" is any agreement, written or oral, pursuant to which tangible personal property is or is to be transferred and incorporated into real property, as defined in section 5701.02 of the Revised Code, so as to become a part thereof without regard to whether it is new construction or an addition to or alteration of an existing building or structure. A "construction contractor" is any person who performs such an agreement, whether as prime contractor or subcontractor.

....

(1) A construction contractor who purchases materials or taxable services for incorporation into real property is the consumer of those materials or services and shall pay sales or use tax on their purchase price, except as provided by paragraph (F) of this rule. The construction contractor is the consumer, even if a subcontractor provides the actual labor to incorporate those materials into the real property. Nevertheless, a construction contractor may purchase exempt from tax those materials or services that will be incorporated:

(a) Into real property under a construction contract with the United States government or its agencies, the state of Ohio, or an Ohio political subdivision;

(b) Into real property that is owned, or will be accepted for ownership at the time of completion, by the United States government or its agencies, the state of Ohio, or an Ohio political subdivision;

(c) Into a house of public worship or religious education or a building used exclusively for charitable purposes by a nonprofit organization operated exclusively for charitable purposes as defined in division (B)(12) of section 5739.02 of the Revised Code;

(d) Into the original construction of a sports facility under section 307.696 of the Revised Code;

(e) Into real property in another state, if the materials or services, when sold to a construction contractor in that state for incorporation into real property in that state, would be exempt from a tax on sales levied in that state;

(f) Into a horticulture structure or livestock structure as defined in section 5739.01 of the Revised Code for a person engaged in the business of horticulture or producing livestock; or

(g) Into a hospital facility entitled to exemption under section 140.08 of the Revised Code.

.

Please also - consider that Carpeting is excluded from these rules.

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