Ruling 89-145

Renovating

This Ruling has been obsoleted by AN 94(4)

The charges for materials billed to the clients are not taxable when the sales and use tax has previously been paid on purchases of materials by the general contractor. Mark-ups or profit are subject to the sales and use tax.

Mark-ups billed to the clients for services rendered to the general contractor by the subcontractors are subject to the sales and use tax.

It is still permissible to show the total with the words, "Tax Included" as long as records are maintained to support the various parts of the total amount billed.

LEGAL DIVISION

October 12, 1989