Common Illinois Sales and Use Tax Issues - Construction Contractors
1. ROT Regulation Sections 130.1940 and 130.2075
a. Construction contract means a contract, written or oral, to incorporate tangible personal property into real estate.
b. Construction contractor means any person who is engaged in the occupation of entering into and performing construction contracts for owners.
3. Sales by Construction Contractors – When Taxable
a. Construction contractors incur Retailers’ Occupation Tax liability when they engage in selling tangible personal property without installation to purchasers for use or consumption.
b. Construction contractors also incur Retailers’ Occupation Tax liability when they sell items like furniture, curtains, stoves, refrigerators, washing machines, and trade fixtures to purchasers for use or consumption, with or without installation by the seller, and whether or not the seller furnishes and installs such items as a part of a construction contract.
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James E. Dickett, J.D., CPA
• Partner in the Law Office of James E. Dickett, Ltd.
• Practice emphasizes all aspects of Illinois sales/use tax matters
• Conducts regular seminars on numerous Illinois sales/use tax matters