If you are planning to hire a contractor in Arizona, you may be wondering whether or not they charge sales tax. The answer is, it depends on the type of work they are doing and how they are registered with the state.
In general, contractors who perform certain types of work are required to charge sales tax in Arizona. These include:
1. Construction projects – If your contractor is building a new structure or making significant changes to an existing one, they are required to charge sales tax on the materials and labor.
2. Landscaping – If your contractor is providing services that involve planting, installing or maintaining plants or trees, or any other type of landscaping work, they are required to charge sales tax.
3. Electrical, plumbing, and HVAC work – Contractors who perform any type of electrical, plumbing, or heating and air conditioning work are required to charge sales tax on the materials and labor.
However, if your contractor is performing minor repairs or maintenance work, they may not be required to charge sales tax. Examples of this type of work include fixing a leaky faucet, repairing a broken tile, or cleaning gutters.
It`s important to note that contractors who are registered with the Arizona Department of Revenue (ADOR) are required to charge sales tax on all taxable items and services they provide. If your contractor is registered with ADOR, they should be able to provide you with a tax rate and a breakdown of the charges.
If your contractor is not registered with ADOR, they may still be required to charge sales tax. In this case, you will need to pay the sales tax on the materials and labor directly to the state.
In conclusion, whether or not your contractor charges sales tax in Arizona depends on the type of work they are doing and how they are registered with the state. If you are unsure whether or not you will be charged sales tax, it`s important to ask your contractor and do your research to avoid any surprises.