A. The costs for new construction and renovation portions of the contract must be separately stated. This provides the direct payment permit holder with the actual costs related to the renovation on which use tax is due.
The contractor must pay sales tax on materials and supplies that will remain in new construction projects after their completion.
The contractor must issue CERT-133, Contractor's Exempt Purchase Certificate for a Renovation Contract with a Direct Payment Permit Holder, to the retailer and purchase materials for the renovation portion of the contract without paying sales tax.
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.