In Ohio, the solution to building repairs is a little nuanced. In general, repairs that qualify as maintenance or repair work are exempt from taxes. Sales tax might apply, nevertheless, if the work is viewed as an improvement or adjustment.
The Ohio Department of Taxation states that “repair and maintenance of tangible personal property are not taxable when such services are performed without a sale of tangible personal property.” This implies that a contractor is exempt from the requirement to collect sales tax if they are merely fixing anything, such as a leaky roof or a broken window.
However, if the repair work entails a change or enhancement to the property, sales tax can apply. Adding a new room, putting in new flooring, or rebuilding the entire roof all fall under this category. In certain situations, the contractor could have to collect sales tax for both the labor they provided and the products they used.
The contractor must divide the costs and only apply sales tax to the taxable element of a project, even if it includes both taxable and non-taxable work. For instance, a contractor would only be required to pay sales tax on the price of the skylight and the cost of installation if they were to replace a leaky roof while also adding a new skylight.
In Ohio, a casual sale is defined as “the sale of tangible personal property by a person who is not engaged in the business of selling tangible personal property.” Let’s move on to the associated questions. This implies that you are exempt from collecting sales tax if you hold a garage sale or sell something on Craigslist.
In Ohio, dog grooming is currently subject to tax. This covers products and services like bathing, hair cutting, and nail trimming. However, the grooming could not be subject to sales tax if it is provided as part of a veterinarian’s services.
Virginia’s sales and use tax, generally known as the state tax, is now 4.3%. However, Virginia’s various counties and cities are also allowed to levy their own municipal sales taxes, which can be anywhere between 1% and 2%.
Finally, Kentucky presently levies a 6% sales tax. In addition to the state rate, individual cities and counties in Kentucky are also permitted to impose their own local sales taxes. In order to ascertain the precise sales tax rate in your area, it is always important to contact your local government.
In conclusion, whether or not building repairs are regarded as maintenance or an alteration/improvement will determine whether they are subject to taxation in Ohio. Sales tax does not apply to casual purchases, but it does to services like dog grooming. Virginia’s state tax rate is 4.3%, whereas Kentucky’s sales tax is 6%.
In Maryland, the sales tax rate is 6%.