The Sales Tax People Podcast
Jason Parr, Danny Wright, and Paul Johnson dig into one of the messiest corners of sales tax compliance... construction and contracting. If you think you're safe because you haven't hit economic nexus thresholds, this episode is for you (physical nexus has been the law for 50+ years, and subcontractors or 1099 sales reps working on your behalf can create it without you knowing). In this episode, the guys cover: - Why physical nexus still matters even in a post-2018, economic nexus world - How using subcontractors or independent sales reps can create nexus you didn't see coming - The real property vs. tangible personal property debate (and why a Tesla charger installation can turn into a legal gray area) - How Texas, New York, New Jersey, and Arizona each handle contractor taxability differently... and why treating them the same is a costly mistake - What a capital improvement certificate actually does (and who's responsible for signing it) - Real audit stories, including a six-figure surprise after a "No Tax Due" audit years earlier with zero changes in the business The big takeaway: what your competitor does, what your vendor does, or what worked in your home state doesn't tell you what's actually required somewhere else. Every state writes its own rules, and construction is one of the industries where "close enough" gets expensive fast. If any of this sounds familiar, or you're not sure where your business stands, book a free What's Next call and we'll help you figure out where you actually have exposure.
14 episodios
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