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Steve
05-09-2005, 09:17 AM
Question
I have a sales tax question. I live in NJ. My cpa tells me when i do a job thats a capital improvment i do not charge sales tax and i must have the customer fill out a ST8 form. When i do work on new constructions and am sub contracted by a G.C. do i still need to have the form filled out? Thanks

Answer
Per my review of ST-8 I would tend to believe that the GC, and not the sub, would be subject to the Certificate Requirements as they are the contracted company and/or person on the site. Therefore you would not be required to have the ST8 if you were the sub.

However, per my review of NJ Sales Taxes I am guessing you are paying sales tax at the time of purchase for materials and supplies for all of your jobs. You are not able to exempt yourself from paying sales taxes unless you are working for on an exempt organization, ie. a not for profit, charitable, school, etc...

This really wasn't one of your questions but in Tennessee the rules are drastically different, and I thought this was interesting.

There is a lot of helpful informatiton for capital improvements and contractors on New Jersey sales tax website. You can review the information that I have given you to make sure what I believe is appropriate. You should for safety sake go ahead and call the State of New Jersey Division of Taxation for Sales Taxes.

The website address is

http://www.state.nj.us/treasur....inFrame (http://www.state.nj.us/treasury/taxation/index.html?publsut.htm~mainFrame)

The phone number for the department is 609-292-6400. I would have called them on your behalf, but they were already closed for the day.

Please remember that this was just an initial review of NJ law. I am not attesting to the positions above. I am only offering my opinion based on my limited set of facts and circumstances. I recommend that you call the state to confirm the proper treatment to be on the safe side.

I hope this helps.

D. Matthew Patrick, CPA