Coops: no sales tax?

A contractor performing work recently told me that coops should not be charged sales tax, and that many management companies he works with don’t include sales tax in the final price. Can this be right?

anon200

in Co-Op Related 10 years and 9 months ago

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anon200 | 10 years and 9 months ago

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Thanks for your replies! This definitely clarifies things for me-

jcarch | 10 years and 9 months ago

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Just to clarify one issue related to this: There’s no sales tax on labor for a capital improvement. But there is sales tax on materials. So when a contractor buys your sheet rock they can’t avoid paying sales tax on that. I’ve heard of unscrupulous contractors who try to add sales tax to their bid – even though the initial sales tax is already in the material costs. So they’re actually keeping all 8.875% as profit. jcarch ———————— James Cleary Architecture brownstoner.staging.wpengine.com/jamescleary

resident2 | 10 years and 9 months ago

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Sales tax is not due on Capital improvements. Sales tax IS due for maintenance & repairs. So it depends on what it is that the contractor is doing and for what purpose.

mozeeatupu | 10 years and 9 months ago

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No contractor can charge sales tax for renovations in NYS. Sales tax also does not apply to most services. Examples of services not subject to sales tax are capital improvements to real property.