Bill > A1302

Introduced Session

This bill excludes certain services rendered in connection with the installation of carpeting and other flooring from the imposition of the sales and use tax. Under the bill, receipts from sales of services rendered in connection with the installation of carpeting and other flooring, such as linoleum, tile, hardwood, and marble, are exempt from the sales and use tax, if the carpeting or other flooring, when installed, constitutes an addition or "capital improvement" to real property, property, or land. Under current law, sales of services rendered in connection with the installation of carpeting and other flooring are subject to tax, regardless of whether the installation results in a capital improvement. The law generally requires contractors, sub-contractors, and retail dealers who install carpeting and other flooring purchased by customers to collect and remit, to the State, the applicable tax associated with charges for installation services. The exclusion provided by this bill will alleviate the burden on contractors, sub-contractors, and retail dealers currently required to collect and remit the tax, and defray a portion of the overall cost associated with the purchase and installation of carpeting and other flooring that, when installed, constitutes a capital improvement.

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Lou Greenwald (D)*, 

Reviewed by the Sales Tax Review Commission Recommend to not enact (on 03/28/2018)