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    3-47. Don’t pay sales tax on labor. - Electronic Edition

    3-47. Don’t pay sales tax on labor. - Electronic Edition
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     Generally, state sales tax does not cover labor, a standard component of subcontractor bids. Tradesmen may attempt to charge you on the full amount. It happened to me with a fence at my Littleton, Colorado property in 1978. I looked over the invoice I had paid for the fence and did the math. The sales tax charged was on the whole amount. A quick call to the state tax commission confirmed the problem. Another call to the fence contractor brought him to my office at lunchtime with a refund check. None of the subs want to run afoul of the tax commission if they can avoid it.

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