White Paper

3 Pages
  • 3 Pages

Multistate Sales Tax Issues for Contractors


Who is responsible for collecting or paying sales and use tax?

Contractors are generally considered to be retailers when the tangible personal property they purchase is not converted to real property but retains its character as tangible personal property.  In addition, contractors are considered to be retailers of any taxable services they perform. Generally a contractor must obtain a seller’s permit from the applicable taxing jurisdiction if the contractor will be selling items of tangible personal property or selling taxable services.  If the contractor separately charges for the materials – such as under a time and materials contract – sales tax is generally calculated on the marked-up billing price of the materials, whereas if the materials are provided under a lump sum or similar type contract, sales tax is generally calculated on the contractor’s cost of the materials. This white paper reviews what is required of a contractor in situations in which they act as a retailer of tangible personal property.



Gary Thorup

Gary Thorup

Dentons Durham Jones Pinegar P.C.

  • Shareholder at Dentons Durham Jones Pinegar P.C.
  • Practice is primarily focused on state and local tax matters, government affairs, administrative law, but also includes federal tax controversies and nonprofit/tax exempt organizations
  • Utah Attorney General – Ass’t. Attorney General (Tax Section)(1981-86), Chief, Tax Section (1982-86)
  • Utah State Tax Commission – Chief General Counsel (1983-86)
  • Utah State Bar Association – chair, Tax Section
  • National Association of State Bar Tax Sections – member and past chair of the Executive Committee
  • Recognized by Utah Legal Elite (Tax)
  • Recognized by Mountain State’s list of Super Lawyers (Tax)
  • Speaker/presenter/moderator at numerous national and Utah-based seminars and conferences on various SALT topics
  • LL.M. degree, NYU School of Law; J.D. degree, University of Utah College of Law; B.A. degree in political science, magna cum laude, University of Utah
  • Can be contacted at 801-415-3000 or [email protected]

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