A. The answer depends on the type of materials being purchased and the type of job:
Consumables: No. For both new construction and renovation contracts, the contractor must pay tax on all purchases, rentals, or leases of items that are not materials or supplies to be installed or permanently placed in the construction project.
New construction: No. The contractor must pay sales tax to the retailer at the time of purchase.
Renovation: Yes. The contractor must issue CERT-133, Contractor's Exempt Purchase Certificate for a Renovation Contract with a Direct Payment Permit Holder, with a copy of Form AU-621, Direct Payment Permit, attached, to the retailer and purchase materials for renovation contracts without paying sales tax.
Repair or maintenance of tangible personal property: Yes. Follow the rules for integral parts purchased using a resale certificate as outlined in Informational Publication 2006(35) Building Contractors' Guide to Sales and Use Taxes.
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.