Sales Tax Articles
Sales Tax State Activity Update - February 2006
Ohio Counters Countertop Service Claim
The Ohio Board of Tax Appeals recently determined an installer of kitchen countertops was properly assessed use tax on the purchase of materials used in fabricating kitchen and bath countertops.
The installer fabricates and installs countertops for a dealer of kitchen and bathroom countertops (i.e. subcontractor). The dealer's customer selects the material and the installer provides the dealer an estimate for the fabrication and installation of the countertop. Once the estimate is accepted, the installer gathers measurements for the countertop, generates a drawing and materials list, shapes the material, fuses sinks into countertops, delivers countertops to locations and installs them onto base cabinetry by fusing seams together and affixing them with adhesives.
According to Ohio Statutes, a construction contract is any agreement, written or oral, pursuant to which tangible personal property is or is to be transferred and incorporated into real property so as to become a part thereof without regard to whether it is new construction or an addition to or alteration of an existing building or structure. A construction contractor is any person who performs such an agreement, whether as prime contractor or subcontractor. In this case, the installer purchased and installed the materials pursuant to a construction contract and was properly assessed use tax on the purchase of materials used to perform such contracts.
View the full text on the Ohio Board of Tax Appeals Website.
(Ohio Board of Tax Appeals Case No. 2004-V-393 01/06/2006)
Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.
Call 800.355.3500 to Speak to a Sales Representative.
