Contractor – Retailer Sales Tax Guidelines


A contractor-retailer is a business that contracts to improve real property and also makes retail sales of building materials, supplies, equipment, and other tangible items.

If you are a contractor-retailer, the rules for reporting tax on your purchases depend on if:

  • you know the item’s use when purchased
  • it is used in a construction contract or sold at retail
  • you are “primarily a retailer” or “primarily a contractor”