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Contractor sales tax in Houston


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Shawn's Forum Posts: 2
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By Shawn in Houston, TX on 3/28/2007


Can somebody clarify what part of a contractor's invoice is and is not taxable? My understanding is that materials are taxable but labor is not. What do you do if it's not broken out? 

Can anybody steer me to the relevant statute that I could print out and have as reference for disputes with contractors?

Thanks,

Shawn


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Brian's Forum Posts: 18
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By Brian in Manvel, TX on 3/28/2007


Shawn,

Labor is not taxable on residential. Ask to see a sales tax certificate if they are trying to collect. Could be just trying to get a bonus.

Here is the website you want:

info.sos.state.tx.us/pls/pub

Look at rule 3.291 Contractors.

Hope that helps.


Brian


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