Home Improvement Contractor - Licensed Contractors
Home improvement contractor is charging tax?
What types of services or materials can a home improvement contractor charge me sales tax on? For example, if we agree to a price per square foot for wood floors could they charge me sales tax on the total amount or should the tax be included in the per square foot amount?
Public Comments
- Tax is usually added to the total amount.
- It depends on what you agreed on. Usually its added on after. And they can charge you for the total price of the job, legally.
- I think you have asked the same question. "For example, if we agree to a price per square foot for wood floors could they charge me sales tax on the total amount" "or should the tax be included in the per square foot amount?" Usually a bid should include tax in the square foot price but if they are doing it separate for accounting purposes its still the same amount. Now if they gave you a bid for one price then added sales tax on your bill which is on top of the price that you agreed on that's a different story.. If they forgot to add the tax when you agreed to the price THEY are out the tax NOT you..
- As far as I can gather, this is the Australian Q&A site, so there are some specific legal obligations when quoting prices since the implementation of GST. The only taxes your contractor can add to the initial quote is GST, HOWEVER, their current lawful obligation is to quote a price INCLUDING GST. If they haven't included GST in their quote then they are obliged(legally) to state that GST is not included. If they have failed to do so, then YOU are not obliged to pay the GST that they "forgot" to include in their quote. If they have specifically used the words "sales tax" then they are shonky con-men. Since the introduction of GST, sales-tax has become redundant, as it, and several other taxes were replaced by the GST for simplicity.
- Contact your state, city or county gov't. They are the ones who control what tax is charged, by whom.
- That question came up on a residential job I visited. Only new construction is tax free. All remodel jobs are subject to tax
