Form Gt-800007 - Sales And Use Tax On Building Contractors Page 2
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5Retail sale plus installation contracts –
These contracts are for improvements to real property where the contractor agrees to: 1) sell
specifically described and itemized materials and supplies for an agreed price or at the regular retail
price; and 2) complete the work for an additional agreed price or on the basis of time spent. All
materials that will be incorporated into the work must be itemized and priced in the contract before
work begins. The purchaser must assume title to, and risk of loss of, the materials and supplies as
they are delivered, rather than accepting title only to the completed work.
Contracts to Install Fixtures –
When installing fixtures, a contractor must pay sales tax and surtax on the purchase of the fixtures
and installation materials. No sales tax is collected from the customer. When deciding whether an
item is a fixture, consider the:
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Installation agreement
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Method of attachment
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Intent of the parties
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Permits and licensing
Examples of fixtures:
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Built-in cabinets, counters, or lockers
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Central air-conditioning units
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Elevators and escalators
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Furnaces
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Kitchen and bathroom sinks
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Wired lighting
Contracts to Install Items that Remain Tangible Personal Property –
Contractors who install tangible personal property that remains tangible personal property must
collect sales tax and surtax on the total charge. The method of installation is a factor in determining
taxability. For example, a mailbox that is bricked into a post beside the road is an improvement to
real property; however, when the mailbox is attached to the house or screwed into a wooden post in
the ground, it remains tangible personal property.
Examples of items that remain tangible personal property after installation are:
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Carpets (except those that become real property) and rugs
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Drapes, curtains, blinds, shades, or slipcovers
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Equipment used to provide communications services installed on a customer’s premises
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Garbage can receptacles
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Household appliances (except “built-in” appliances)
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Lawn markers
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Mirrors (except those that become real property)
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Portable ice machines and refrigerators
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Precast clothesline poles
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Radio and television antennas
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Stepping stones
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Window air-conditioning units
Florida Department of Revenue, Sales and Use Tax on Building Contractors, Page 2
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