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tumblenweed

Taxes on install

tumblenweed
9 years ago

Hope someone can answer this question.

I was told you can not tax install (labor) is this true.

Comments (8)

  • live_wire_oak
    9 years ago

    Depends entirely on how your state and muncipal laws are worded. Some will tax labor no matter what. Some will tax the product, and not the labor. Some will tax neither if they are furnished by the same company. Call your local tax office.

  • ajc71
    9 years ago

    Totally depends where you are as mentioned by LWO

    Can I ask why it matters to you? Are you the buyer or seller?

  • weissman
    9 years ago

    I don't think this is a buyer/seller situation. I think it's someone doing a renovation who wants to know if they're liable for sales tax on labor, and as already been said, it depends on the state, city, etc.

  • rococogurl
    9 years ago

    In my state, NYS, for example, you do not pay tax on "captial improvements" which are installed by the same entity you purchased from. There is a state tax sheet that must be filled out for this.

    F.ex. I didn't pay tax on my cabinets, which were installed by the same place I purchased them. Similarly, did not pay tax on furnace installed by the plumber.

    But did pay tax on repairs done to existing appliances. Dishwashers and wall ovens aren't subject to tax when installed. Refrigerators are.

    It can be very quirky and varies widely. Best to google capital improvements to a home, or taxable services on your state government website.

  • tumblenweed
    Original Author
    9 years ago

    Ok, I will check with a tax person hope they know.

    weissman, you are correct. I thought it should be billed sperate for the labor & materials.

    Lowes told us about not being able to tax us on the labor.

  • Vertise
    9 years ago

    I don't understand why people come online to ask about things like this. You need to ask your taxing authority.

  • jakuvall
    9 years ago

    To clarify capital improvement in NYS.

    You cannot be charged a line item for sales tax. The installer MUST pay "use tax" ( at the same rate as sales tax) on the cost of materials. So in the long run you are still paying, you just don't see it. If the installer considers the use tac part of their cost and mark it up accordingly then there is no difference in the end.

  • ardcp
    9 years ago

    jakuvall - not questioning you but in my situation my cabs were originally to be installed by an independent contractor. that fell through and we had the kitchen place do the install instead and they took the sales tax off the bill. so they probably added the use tax to the install cost in that scenario? their install was higher than the first guy but i didn't pay the sales tax so that helped make it closer.