Indiana Clarifies Tax Treatment For Construction Contracts and Materials

Erik Wallin
December 12, 2017

The Indiana Department of Revenue has re-released sales tax Information Bulletin #60, which clarifies definitions and applicability of sales and use taxes on transactions involving a construction contractor. Notably, the Bulletin clearly outlines when contractors are required to pay sales and use tax, and when they are required to charge sales and use tax. In addition, the bulletin clarifies the difference between a "time and materials" contract and a "lump-sum" contract for purpose of determining when a contractor should charge the final consumer tax under a construction contract. 

Further information regarding the updates made in this new publication of Information Letter #60, can be found here

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Author

Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.
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