Sales Tax Articles
Sales Tax State Activity Update - July 2007
Grounded For Life – Vermont Rules on Real Property Racking
The Vermont Department of Taxes issued a formal ruling indicating the installation of warehouse racking systems is an improvement to real property.
The warehouse racking is deemed a real property improvement because of its nature, high cost and the difficulty incurred when removing the system after installation. The racking is anchored to a concrete warehouse floor using anchors installed several inches deep and may only removed by cutting it from the floor.
Vermont sales and use tax law provides contractors are users or consumers of the materials and supplies used in improving real property. Contractors do not charge customers sales tax and must pay sales or remit use tax on the purchase of all materials and supplies used in improving real property.
The full text can be viewed on the Vermont official state website. (PDF)
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