General Contractor

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  • 1.  Sales Tax Exempt Projects

    Posted 12-16-2020 13:35
    Hello,

    Wondering how other general contractors handle projects with a sales tax exempt entity.  We are a general contractor governed by Minnesota tax laws and we don't do many projects with tax exempt entities.  A question that has come up recently is how to handle charging overhead and fee.  We normally have two separate jobs for exempt projects, one for labor and one for materials.  I am wondering if it is acceptable to charge overhead and fee on the materials project.  I've received differing answers to this depending on whom I ask.  Some say all fees have to be charged on the labor project, and not the materials project.  I've also heard it is ok to charge fee on both.  Any advice on how to handle this would be appreciated!

    Thanks,

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    Theresa Weatherly
    Accounting Manager
    Greiner Construction, Inc.
    Minneapolis MN
    (612) 225-6911
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