Construction materials and supplies used to build or improve an adult or juvenile correctional facility are eligible for a refund of sales tax paid. To qualify for a refund, the project must be required by state or federal law, rule, or regulation. If a contractor or builder buys materials, they must give the local government a statement that lists the cost of materials and the sales tax paid.
The local government must pay tax on the materials and supplies; a purchasing agent agreement is not allowed. For more information, see Revenue Notice 98-01, Materials Used to Construct or Improve Correctional Facilities.
To request a refund of sales tax paid, use Form ST11, Sales and Use Tax Refund Request.
Correctional Facility Meals and Drinks
Meals and drinks furnished, prepared, or served to inmates or persons residing at correctional detention or detoxification facilities are not taxable. However, sales by cafeterias, coffee shops, candy stands, or vending machines are taxable when sold to residents or patients.