no tax on kitchen if installation included

sterrey3May 23, 2008

Does anyone know why HD or Lowes don't have to charge you sales tax when you buy a kitchen or carpet from them and

also the installation.

I live in Georgia.

Have been told this locally at Lowes when looking at a new kitchen, and at HD Expo in Atlanta when shopping for carpet.

If you say buy the carpet only then sales tax is charged,

but if you also buy install then no sales tax ????????

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raehelen

Don't know the Georgia laws, but here in BC,Canada we have a similar situation. We have two taxes (yeah!), provincial sales tax, and federal goods and services tax. Can't remember which one it is (reno's taken way too long), but one of them isn't charged if the company supplying the material installs it.

I phoned (now that I think about it, must have been provincial sales tax- cuz I phoned the provincial #)and enquired. It was all explained to me- so well, that now I've forgotten the rationale. I'm sure you could phone your state governing body- if you go online- there should be a toll-free contact # listed somewhere.

It's actually good to know, because many smaller outfits may not be aware of the law. HD and Lowes of course are large enough that they are familiar with it.

    Bookmark   May 23, 2008 at 2:10PM
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ma-bookreader

This is true in NJ and in PA. No sales tax if they install. You pay tax only if you do the installation.

Interesting...

    Bookmark   May 23, 2008 at 2:16PM
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sarschlos_remodeler

Interesting. In CA, you pay tax on the materials, but not the labor, regardless of who does the install. Sometimes we see offers from these places to pay the sales tax for you if you hire their installers, but it sounds like you're talking about something different.

    Bookmark   May 23, 2008 at 2:21PM
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susan4664

Same thing here in Florida. In fact, the same goes if you buy a kitchen appliance. Last year we bought a dishwasher and fridge from Sears for $2500. The delivery/installation charge was $75.00. If we picked it up ourselves they would have to add on 6% sales tax, which came to $144. Obviously we opted for them to deliver and set up.

It has something to do with whether you are purchasing a product, which is subject to sales tax, vs. adding something structural to your home, which is not subject to sales tax.

    Bookmark   May 23, 2008 at 2:23PM
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buehl

Ditto in Maryland...we paid no sales tax on anything that EXPO is also installing...cabinets, appliances, etc. That's a substantial savings if you aren't going to DIY! Assuming, of course, the installation isn't already 6% higher than elsewhere (our state sales tax is now 6%).

    Bookmark   May 23, 2008 at 4:24PM
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neesie

Hmmm. I just bought new carpeting for my bedroom this week and had it installed (Mom & Pop Outfit) and was charged sales tax. I live in Minnesota. However, we have no sales tax on clothing or groceries.

    Bookmark   May 23, 2008 at 4:34PM
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raynag

A kitchen is considered to be a capital improvement. That's why no tax. Not so for a carpet.

    Bookmark   May 23, 2008 at 5:38PM
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gshop

I live in Calif. and checked all my quotes. If you have it installed there is no tax at all (not even on materials), if you only buy materials, no installation, then you are charged tax.

    Bookmark   May 23, 2008 at 7:29PM
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malhgold

Raynag - you didn't pay tax on your cabinets?

    Bookmark   May 23, 2008 at 8:42PM
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napagirl

ngng,
If what you say is true, "If you have it installed there is no [sales] tax at all (not even on materials)" ... I think you'll find that your contractor already paid the sales tax when he purchased the materials.

I guarantee you, someone is going to pay the California State Sales Tax!

    Bookmark   May 24, 2008 at 4:31AM
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iamnodiy

New York also does not collect sales tax for capital improvement. It was cheaper to have Sears deliver and install my convection microwave oven (they had a sale on installation) than it was to pay sales tax and do it myself.

    Bookmark   May 24, 2008 at 9:15AM
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ctkitchenremodel

Does anyone know how this works in CT?

Thanks

    Bookmark   May 24, 2008 at 5:55PM
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