Is Painting a Building Taxable?

The charge to paint a building is exempt from sales tax. If your charge includes the material and the labor, the entire charge is exempt from tax. But, if you have one invoice for the labor and a separate invoice for the paint – the labor is exempt from sales tax but you will need to collect and remit sales tax for the paint.

The painting of a building is considered improvement to real property which is exempt from sales tax. You can read more about real property improvements here.

 

I install cabinets – I gotta charge tax or what?

Quick answer: You don’t have to charge tax on the installation of ‘permanently’ installed cabinets.

I’ve never heard of temporary cabinets – but you never know.

Anytime you permanently install an item (fixture) to a building (real property) the installation is not taxable.

Real Property: Any property attached directly to land, including the land itself (which means your lawn is considered real property).

Fixture: An item that is permanently attached to real property but keeps its own identity (basically you can tell it apart from the real property). But the definition, for FDOR, does not include titled property, machinery, or equipment.

Here’s a lil more info:

If you sell cabinets only – taxable.

If you permanently install cabinets only – not taxable.

If you sell and permanently install cabinets on the same order – not taxable.

See how that works?

If you sell a fixture only – taxable.

If you permanently install the fixture only – not taxable.

If you sell and permanently install the fixture on the same order – not taxable.

You can get more information about adding to real property (aka real property improvements) here.