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What contractors should know about sales and use taxes

Building Construction

Contractors who work on buildings and other construction projects face a confusing array of sales and use tax rules, which vary from state to state.

Even if you become familiar with the rules in the state where you do most of your construction work, performing a contract in another state may subject you to a set of rules different from those familiar to you. Moreover, how you are taxed in a particular state often depends on the role you play in the construction contract.

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