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| Author: | Sam King |
| Subject: | Sales tax on the Vinyl replacement windows |
| Posted At: | 2004-08-19 15:28:45 |
Hi,
I'm in the process selecting a company to replace the windows in my house. I had a few companies come in to give me a price. Some of them told me that there is no sales tax on replacing windows and the price they gave me is the final price. Some of them told me that the final price is the price they gave me + sales tax. Others told me that the sales tax is on the windows but not on the labor. I'm confused. How should the sales tax work in this scenario? I'm in the cook country of Illinois.
Thanks!
| Author: | Window4U (IL) |
| In Reply To: | Sales tax on the Vinyl replacement windows (posted by Sam King) |
| Subject: | RE: Sales tax on the Vinyl replacement windows |
| Posted At: | 2004-08-19 15:59:24 |
The following is an excerpt from the State of Illinois website:
>When construction contractors incorporate tangible personal property into real estate under a construction contract, they are not authorized to collect tax from their customers. In this situation, the contractor is considered to be the end user of the tangible personal property and incurs a Use Tax liability, on the cost price of the property incorporated into real estate, which he either pays to his suppliers or self-assesses and remits to the Department. If a construction contractor, however, sells tangible personal property to customers over-the-counter, he is making retail sales, and is required to collect sales tax just like any other retailer.<
As a note, the laws may vary from state to state. Many salesmen I have seen in my career use "sales tax" as a way to get more money for their jobs without it looking as if they themselves are charging it. It ends up as a suprise on the paperwork for a lot of customers after they say "Yes"
| Author: | Window4U (IL) |
| In Reply To: | RE: Sales tax on the Vinyl replacement windows (posted by Window4U (IL)) |
| Subject: | RE: Sales tax on the Vinyl replacement windows |
| Posted At: | 2004-08-19 16:38:02 |
There is an obvious exception to this, by the way. If you are buying from a retailer, like a lumberyard for example, who is a retailer, and bills seperately for labor, then yes, you would end up being the end user for the sales tax.
Most window contractors are giving in home estimates for installed windows all on one contract, which is where the difference lies. They are NOT allowed to collect sales tax.
I just got off the phone with the Il. Dept. of Revenue Sales Tax division while I was typing and they said my take on this was accurate.
| Author: | Sam King |
| In Reply To: | RE: Sales tax on the Vinyl replacement windows (posted by Window4U (IL)) |
| Subject: | RE: Sales tax on the Vinyl replacement windows |
| Posted At: | 2004-08-19 16:55:11 |
Thanks for the information. Is it possible to let me know the URL you got the excerpt?
| Author: | Window4U (IL) |
| In Reply To: | RE: Sales tax on the Vinyl replacement windows (posted by Sam King) |
| Subject: | RE: Sales tax on the Vinyl replacement windows |
| Posted At: | 2004-08-19 17:03:47 |
http://www.revenue.state.il.us/Businesses/faq/rotfaq.html