Sales Tax In Texas

[tamwham2]

please forgive the caps, i know better, but i am to tired to redo it...

APRIL 12, 2002
REGARDING; SALES TAX & REMODELING CONDO’S FOR SALE AND WORKING FOR GENERAL CONTRACTOR ON INSURANCE JOBS

SPECIFICALLY WITH TEXAS SALES TAX LAWS. HOPEFULLY YOU CAN HELP ME WITH CLARIFICATION OF SALES TAX INFORMATION: GIVEN TO ME BY THE STATE.

I TALKED WITH THE STATE COMPTROLLERS OFFICE. REGARDING IF MY RESIDENTIAL REMODELING WAS TAXABLE OR NOT. ANN SAID THAT IF CLIENTS ARE BILLED FOR ONE COMPLETE JOB, WITCH INCLUDES MATERIALS AND LABOR, THEN IT NEED NOT BE TAXED.

SO, MY UNDERSTANDING IS THIS:

IF WE RESURFACED A TUB AND BILLED THE CLIENT FOR $190.00 WITH THE LABOR, MATERIALS AND SUPPLIES WE DON’T HAVE TO BILL THE CLIENT FOR SALES TAX

IF WE RESURFACED A TUB AND BILLED THE CLIENT FOR $150.00 PLUS MATERIALS @ $40.00, THEN THE $150.00 IS TAXABLE FOR THE LABOR AND THE MATERIALS FOR $40.00 IS NOT TAXABLE BECAUSE WE PAID TAX IN THE STORE FOR THE STUFF ALREADY.

QUESTIONS:

MAYBE I SHOULD DO ALL MY INVOICES ON EACH SERVICE WITH LABOR AND MATERIALS TOGETHER TO MAKE JUST ONE JOB, THUS NOT CHARGING OR SAVING FOR SALES TAX....... ?

WE DO WORK FOR A GENERAL CONTRACTOR WHO DOES WORK FOR INSURANCE COMPANIES FOR RESIDENTIAL, THEY PROVIDED ALL THE MATERIALS AND SUPPLIES, SO WE BILL FOR LABOR ONLY PLUS TAX
I SHOULD BE CHARGING SALES TAX

IF THE GENERAL CONTRACTOR IS CHARGING THE INSURANCE
COMPANY TAX, THEN WE DON’T HAVE TO CHARGE THE GENERAL
CONTRACTOR TAX, (DOUBLE TAXATION ) BUT WOULD HAVE TO GET A CERTIFICATE FOR TAX EXEMPT?

IF I CLEAN A VACANT APARTMENT AND USED MY JANITORIAL
SUPPLIES,, I STILL HAVE TO CHARGE SALES TAXES BECAUSE IT IS A SERVICE.....RIGHT?

AGAIN, I JUST WANT TO CLARIFY THIS INFORMATION, BECAUSE IT WOULD BE GREAT, I WOULDN’T HAVE TO SAVE MONEY TO PAY THE STATE

MY BOOKEEPER IS LIMITED ON ADVICE, I THOUGHT I WOULD ASK FREEADVICE.COM, FOR INFORMATION BEFORE I WENT FURTHER.

THANKS AS ALWAYS SY, and again, please excuse my yelling with caps....sorry.

tammy

 

[loku]

It sounds like you have a correct interpretation of the law.

The following is excerpted from the Texas Sales Tax Publication, Real Property Repair and Remodeling, which I suggest you download for your information. You can download the publication at http://www.window.state.tx.us/taxinfo/taxpubs/tx94_116.html

Residential Repair and Remodeling
When you repair or remodel residential property, you are a contractor. As a contractor, you may have a lump-sum contract (one price for the entire job). Or, you may have a separated contract (you charge separately for materials and labor). Under a lump-sum contract, you pay tax on all your supplies, materials, equipment, and taxable services when you buy them. You don't charge your customer tax.

Under a separated contract, you give your suppliers resale certificates instead of paying tax on materials you incorporate into the customer's real property, and on certain services if the charges for the services are separately identified to the customer. These services are surveying, landscaping, final cleanup, and security systems that are incorporated into the customer's realty. You then collect state sales tax, plus any local tax, from your customer on the amount you charge for the materials and those services. Your charge for the materials must be at least as much as you paid for them. The construction labor charge is not taxable.

 

[tamwham2]

thank you. you have always been very informative.


tammy

 

[loku]

You are very welcome. Good luck