Iwood Floors Subject To Sales Tax In Nj

N ew j ersey d ivision of t axation.

Iwood floors subject to sales tax in nj.

The retail sale of floor covering is always subject to sales tax. For more information on floor covering dealers and new jersey sales tax contact the division s customer service center at 609 292 6400 e mail us at nj taxation treas state nj us or write to. Generally the maintaining servicing or repairing of real property is taxable unless the service results in an exempt capital improvement. Anyone contractor developer or property owner purchasing floor covering carpeting linoleum tile hardwood marble and padding etc from a dealer retailer pays sales tax on the purchase price of the floor covering.

Pay sales tax on the manufactured cost of the cabinet. Section 541 14 of the sales and use tax regulations provides in part. Sales tax on floor covering dealers carpets hard wood flooring tile flooring created date. If a contractor fabricates a product at the job site fabrication labor is exempt from tax.

We pay sales tax on the material at the flooring supply company but didn t think we had to charge tax on the labor to install it. Floor coverings do not include floorings such as wood floor ceramic tile floor terrazzo marble concrete or other similar floor. Site are not subject to new jersey sales and use tax. We re a full service flooring company offering the sales and installations for carpet custom rugs hardwood laminate ceramic tile stone flooring sheet vinyl lvt vct and rubber flooring.

Unless a sale is exempted excluded by the sales and use tax act new jersey imposes a tax of 6 625 upon the receipts from every retail sale of tangible personal property. We are a remodeling and repair company and have been told different answers as to whether to charge sales tax on labor when labor and materials are billed to customers for flooring installations. The sales and use tax is imposed on the retail sale consumption rental or use of tangible personal property including digital products in pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business services.

12 21 2017 10 33 32 am. The contractor cannot use an entity s tax exempt status to purchase materials used under a construction. Only the cost of the materials is subject to tax. Construction for tax exempt entities.

Sales use and hotel occupancy tax. Retail sale of floor coverings without installation is subject to tax. Thus sales tax must be collected on sales of floor coverings to persons who will perform the installation themselves.