Sales Tax State Activity Update - July 2005

Grave News for Tombstone Foundations in Indiana

An Indiana taxpayer installing foundations for grave markers (i.e. tombstones) is making an improvement to real estate and responsible for paying sales tax or remitting use tax on the materials purchased for use in the installation.

The taxpayer sells tombstones and inscription to customers. In addition, the taxpayer installs or subcontracts with third parties for installation of concrete slabs to ground the tombstones. The installation is contracted for on a lump sum basis and billed as such on the invoice.

In Indiana, a contractor charges sales tax on time and material contracts, and construction materials sold over the counter. The installations did not meet the criteria for collecting sales and use tax. Therefore, the taxpayer must pay sales tax or remit use tax on materials used in installing foundations.

You can view the full text here.

Indiana Department of Revenue, Revenue Ruling No. 2005-05ST 07/05

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