California

Sales tax for California contractors

California taxes a contractor as the consumer of materials and as the retailer of fixtures, and the line between those two decides who pays and on what. These guides cover the materials and fixtures split, the district taxes stacked on top of the state rate, the seller permit, and the resale certificate that stops you paying twice.

3 ways to move forward

Practical guidesSales tax on materials and fixturesRegulation 1521 makes you the consumer of materials and the retailer of fixtures on the same job. A worked HVAC contract moves the taxable measure from $76,200 to $99,000 on the contract form alone, plus the deemed profit trap on fixtures you fabricate yourself.After you qualifyCDTFA seller permitRegulation 1521 makes you the consumer of materials and the retailer of fixtures, so lighting, plumbing and cabinets put you on the retail side. The three question test, resale certificates at the supply counter, and a Q3 return due 31 October.Practical guidesStart a construction businessTen steps in the order that stops one blocking the next, from classification to the first insurance certificate. The $450 application and $200 issue fee, the $25,000 bond, the CDTFA seller's permit, the city certificate, and twelve months of real dates.

The rest of the California library

Getting and keeping a CSLB licensePreliminary notices and mechanics liens in CaliforniaRetention on California jobsPrevailing wage and public works in CaliforniaBuilding standards on a California siteGetting paid on California jobsCalifornia franchise tax for contractors
Every guideThe whole California libraryPractical guides