COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
When you deliver and spread aggregate material in a manner so that no further leveling or movement is required by the purchaser, the sale is an improvement to real property. You must pay sales tax on any taxable products or services used to complete the contract.
You enter into a contract to build a parking lot. You provide and haul aggregate materials to the construction site in your own vehicles. You spread and level the aggregate materials so that no further leveling or movement is required. This is an improvement to real property and is not taxable.
You buy aggregate materials to build a parking lot and hire a third-party hauler to pick up the aggregate from the seller’s pit and deliver it to the construction site. You owe sales or use tax on the purchase of the aggregate and the third-party hauling charges. The third-party hauling charge is taxable even if the third-party hauler is required to spread or level the aggregate materials on the parking lot. Your charge to your customer is not taxable.
Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes.
To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.
Note: The map and rate calculator do not include special local taxes.