In the construction industry, success necessitates the ability to cost-effectively create a building envelope, structure, or support system, as virtually every financial decision a construction company makes has a tax consequence. 

With that said, contractors must pay sales tax on the cost of all materials, supplies, and equipment to complete a construction contract. (As a tax tip, you may pass this tax onto your customers as part of the materials cost. Do not itemize it separately on customer invoices.)

Here are some of the most common sales tax implications for construction contractors.