Construction and Repair Services
The construction industry is comprised of companies primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems), including the preparation of sites for new construction, and subdividing land for sale as building sites, and may include new work, additions, alterations, or maintenance and repairs. There are substantial differences in the types of equipment, work force skills, and other inputs required by these companies.
It is growing at a healthy clip. The U.S. Census Bureau estimates that the total value of construction put in place in the month of January 2017 (seasonally adjusted) was $1.18 trillion. That’s an increase of $35.4 billion compared to the same time last year, or a 3.1% increase.
Equally interesting, in a recent construction technology survey [https://www.forconstructionpros.com/construction-technology/article/12148985/construction-technology-survey-reveals-huge-profit-opportunity-in-it-investment], more than half of the surveyed construction managers spend less than 2% on IT and only 42% of construction managers have a dedicated IT staff on which they depend. This creates opportunities to provide technology solutions to operations, as well as tax compliance and planning issues. Specific among those issues in sales and use tax compliance are nexus determination, contractor or retailer determination, taxation of repair and installation services, and use tax tracking.
It is clear that many of the industries that are particularly impacted by sales and use taxation are growing and that is good for business. It is also clear that along with this growth, there continue to be many ongoing sales and use tax issues. That creates opportunities to assist them by finding the right data and technology solutions that specifically address their needs. Subsequent blogs will address each of these needs in more detail. Check out Wolters Kluwer’s Tax Compliance Review services to learn whether your business is meeting its obligations.