idAg09 said:

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62strat said:

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idAg09 said:

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My company in commercial construction charges taxes on labor and material. No residential and no new construction so I think that may have more to do with it.

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a use tax or a sales tax?

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I don't know. 8.25% in Texas

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Texas sales tax rate is 6.25% (jurisdictions and/or counties may add to this)
You charge the sales tax rate based on where the project is, not where the company is located.


Labor is not taxable, but there are taxable 'services'

https://comptroller.texas.gov/taxes/publications/96-259.php

Maybe you fall under 'nonresidential real property repair, restoration and remodel'

Simon & SonZ Concrete

https://simonnsonz.com/

I agree with the previous posts. You have to do a walkdown and get measurements, how accessible is the project area, if demo is required, city inspections, special instructions, etc.

Gather all critical information for the project and then estimate how many work days, how many personnel, materials, equipment, permit costs, taxes, gas, etc.

Then put your numbers together and that is how you will get the s.q.f.t cost for the project

Often small project sqft are high

62strat said:

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idAg09 said:

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62strat said:

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idAg09 said:

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My company in commercial construction charges taxes on labor and material. No residential and no new construction so I think that may have more to do with it.

---

a use tax or a sales tax?

---

I don't know. 8.25% in Texas

---

Texas sales tax rate is 6.25% (jurisdictions and/or counties may add to this)
You charge the sales tax rate based on where the project is, not where the company is located.


Labor is not taxable, but there are taxable 'services'

https://comptroller.texas.gov/taxes/publications/96-259.php

Maybe you fall under 'nonresidential real property repair, restoration and remodel'

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We charge turnkey pricing so do not "add" or collect sales tax on our jobs. No tax on labor as mentioned and we pay the sales tax on our material purchases.

If a turnkey guy is charging sales tax, you want a breakout of materials and labor. For materials, he may charge / collect the sales taxes in order for him to not pay sales tax on the purchases he makes for materials, but that is more work for them and not usually done in my experience.

If you think a guy is just adding it to pad profit, ask him for his tax certificate and a copy of his account showing he is in good standing. If he collects sales tax, he MUST remit that to the state. If he is not doing that, you don't want to do business with them as eventually someone is going to knock on his door.