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Don't forget sales tax


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J.M. & Nancy's Forum Posts: 4

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By J.M. & Nancy in UT on 11/23/1999


Budget was $180,000. I got bit badly in that I forgot sales tax, 8%, and it nailed me. There is a sales tax on service, too, here, so I had to pay on labor.
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By Austin on 1/26/2002


I got a bid back from a contractor and he added 8.1% sales tax to the total cost of building the house, including his fees. Is this correct? Is the tax on the whole cost? The extra $16K has put my home out of reach financially. Anyone know the rules in Washington State regarding sales tax?
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By Linda in Suamico, WI on 10/24/2002


Sales tax? What are you talking about? I live in Wisconsin. If I sub out the work... do I have to pay sales tax?

Linda
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By Jeff in Provo, UT on 10/24/2002


If you purchase the materials, you may well be charged sales tax in most states. Additionally, it is true that some states allow sales tax to be charged on service. This is one of those areas that should really be looked into before beginning your project.

Additionally, it is important to remember delivery charges. I asked my framer and lumber supplier to break down the take-off that they gave me into deliveries, and then used that as a basis for knowing what the charge might be. Then try to negotiate either a lower delivery or total package price.

When the lumber supplier came back with extra charges for gas and other things, I was able to use the negotiated deal to clean those up.


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