Sales Tax on Construction

[dc11257]

Hi All,

I was wondering if anyone knows if the Florida Sales tax is typically included within a contractors bid? I have several quotes from T&D, CVS, Elite, etc with a total project costs. However, no mention of sales tax, so I was wondering if this is typically included within the total quoted figure.

I know I can ask the contractor but would like to know what others have paid before I open that question as it may give them the opportunity to increase the quote.

Thanks in advance.

[theorem painter]

I know in New York there is no sales tax if the project is considered a capital improvement.

[GeoGeo]

I know when we purchased tile and they were going to install that I was told there is no sales tax on it because they were installing it. If we bought it to do ourselves there would have been sales tax. So apparently there is NO SALES TAX on construction.

[Waverunner]

It is also our understanding that there is no sales tax applicable to permanently installed improvements.

That said, we received a proposal from Gingerich Construction for a built-in wall unit that had sales tax included. When we questioned that line item, the explanation was that this was the sales tax to them for purchasing cabinets and materials for the built-in. It didn't make sense to us as the tax appeared to be based on a number larger than materials (or wholesale materials).

You may also see a sales tax when a vendor is selling a product but partners with an outside installation firm that is not related to them.

If you are down to making a selection between two or three vendors, we suggest that you verify with each that this is the final price and there is no additional sales tax, delivery fees, mileage charges, etc. before agreeing to contract for services.

[rubicon]

It is also our understanding that there is no sales tax applicable to permanently installed improvements.

That said, we received a proposal from Gingerich Construction for a built-in wall unit that had sales tax included. When we questioned that line item, the explanation was that this was the sales tax to them for purchasing cabinets and materials for the built-in. It didn't make sense to us as the tax appeared to be based on a number larger than materials (or wholesale materials).

You may also see a sales tax when a vendor is selling a product but partners with an outside installation firm that is not related to them.

If you are down to making a selection between two or three vendors, we suggest that you verify with each that this is the final price and there is no additional sales tax, delivery fees, mileage charges, etc. before agreeing to contract for services.

Your post is most illuminating. Thank you will look for that in future business transactions here