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I am an Option 1 contractor and have been hired by the project owner to build a new detached garage. Do I charge sales tax when I bill my customer for the materials and labor?

April 26, 2017build contractor detached garage hired option owner project

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I am an Option 1 contractor and have been hired by the project owner to build a new detached garage. Do I charge sales tax when I bill my customer for the materials and labor?

1 Answer

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Yes. As an Option 1 contractor you must collect sales tax on the total amount charged for the building materials and labor unless you separately state the labor charge. Separately state labor charges are not taxable.