Form Gt-800007 - Sales And Use Tax On Building Contractors printable pdf download

Form Gt-800007 - Sales And Use Tax On Building Contractors

Sales and Use Tax on

GT-800007

R. 12/17

Building Contractors

Definitions

Fabrication Cost – The cost to a real property contractor to fabricate an item. This cost includes

direct materials, labor, and other costs that are allocated to production.

–

Fabricated Items

Items that contractors manufacture, produce, process, compound, or fabricate

for their own use in performing contracts for improvements to real property.

Fixture – An item that is an accessory to the realty, building, other structure, or to land, that retains

its separate identity upon installation, but that is permanently attached to the real property. The term

“fixture” does not include titled property, machinery, or equipment.

Improvements to Real Property – The activities of building, erecting, constructing, altering,

improving, repairing, or maintaining real property.

Real Property – The surface land, its improvements, and fixtures.

Tangible Personal Property – Personal property that may be seen, weighed, measured, touched, or

is in any manner perceptible to the senses.

Types of Real Property Contracts

Generally, transactions that involve items that are permanently installed into a structure, where the

items cannot be removed without being destroyed, are classified as real property improvements.

Examples are:

•

Carpeting (permanent)

•

Carpentry

•

Dock, pier, seawall

•

Driveway

•

Electrical system

•

Elevator, escalator

•

Landscaping

•

Masonry work

•

Roofing

•

Tile

The purchase of materials and supplies to improve, alter, or repair land, buildings, homes, or

other real property is subject to sales tax and applicable discretionary sales surtax. Real

property contractors determine the taxability of purchases and sales of materials and supplies

used in performing real property contracts by the pricing arrangement in the contract.

Lump sum, cost plus or fixed fee, guaranteed price, or time and materials contracts –

Contractors who perform lump sum, cost plus or fixed fee, guaranteed price, or time and

materials contracts do not sell tangible personal property to the real property owner. Under these

types of real property contracts, the contractor is the final consumer of materials and supplies used

in performing the contract. No sales tax is to be collected from the real property owner under these

contract types.

Florida Department of Revenue, Sales and Use Tax on Building Contractors, Page 1

Form Gt-800007 - Sales And Use Tax On Building Contractors

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