Sales and Use Tax Updates

When:

• Dec 10, 2024 10:00 AM – 11:00 AM

Where:

• Online Learning - Zoom

Fee	Type of Fee
NO CHARGE	MBI Members

Presenter: Shad Kraftson, CliftonLarsonAllen LLP - Minneapolis, MN

The sales and use tax rules for builders and contractors in Iowa are among the most complex in the United States. This webinar will address the sales and use tax issues related to new construction, renovation, repair and installation of tangible personal property. Depending on the type of construction project, we will provide guidance on the taxation on the purchase side and the sales side. In certain cases, the entire project cost could be subject to sales tax on the retail selling price or sales/use tax may only be due on the purchase price of the materials.  Understanding this flow will prevent double taxation. Other states have more straightforward rules for contactors and most states do not tax construction labor. However, Iowa presents a risk to contractors. If sales tax is not built into a contract upfront, it is hard to go back and collect sales tax from the end customer.  There are also favorable exemptions for contractors and we will discuss how to qualify for those exemptions.