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I am an Option 2 or Option 3 contractor. Do I still use the contractor labor percentages to calculate the sales tax I must collect from customers?

April 26, 2017CALCULATE collect contractor labor option percentages

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I am an Option 2 or Option 3 contractor. Do I still use the contractor labor percentages to calculate the sales tax I must collect from customers?

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No. Beginning October 1, 2007, Option 2 and Option 3 contractor labor charges are no longer taxable. Option 2 and Option 3 contractors are reminded to update their records and computer software programs to remove the contractor labor percentage calculation since contractor labor charges are no longer taxable.