Contractor-retailer definition
Contractor-retailer means a person or business that acts as a contractor when it performs construction contracts and as a retailer when it sells tangible personal property at retail. A contractor-retailer holds itself out as providing construction services and operates a retail showroom or otherwise maintains an untaxed resale inventory to sell merchandise from. A contractor-retailer withdraws merchandise from the untaxed resale inventory to use in their construction projects and to sell at retail. In general, when a contractor-retailer withdraws merchandise from inventory to install for another, the contractor-retailer must accrue sales tax on the cost of the materials and collect sales tax from its customer on the fee they charge for installing or applying the materials. The discussion of the specific rules pertaining to contractors apply equally to contractor-retailers when the contractor-retailer is acting as a contractor by installing materials for others. Additional information may be obtained from Information Guide, EDU-26, Sales Tax Guidelines for Contractors and Contractor-Retailers.
Contractor-retailer means contractors and subcontractors that operate in a dual business, which includes selling machinery, appliances, or equipment, or reselling to the general public on an "over-the-counter" basis the same type of building materials and supplies as is used by them in their own construction work, along with their sales of construction contracts. Examples of machinery, appliances, or equipment sold by contractor-retailers include: