Construction Contracts with Designated Exempt Entities - Items Remaining Taxable With the Exemption Certificate Option

Contractors will continue to pay sales tax on items that do not become part of the realty being constructed.

Examples include:

Certain construction-related equipment purchased by contractors is not subject to local option tax but is subject to a state 5% excise tax.

Rental of Construction Equipment

The contractor must pay sales tax on any building equipment that is purchased by them but may rent certain building equipment exempt from sales tax if conditions are met.

Rental of the following is exempt when used in new construction, reconstruction, alteration, expansion, or remodeling:

Choose from the links below to learn more.

General information

Designated exempt entities

Detailed information

Contractors Guide informational booklet

This page was updated on 9/25/07.