Services performed between local governments

From the 2024 DOR Tax Exemption Study

Home Education Industry Guides Construction Custom Construction Print Custom construction This section refers to all construction jobs except those which are specifically defined as speculative building, federal government contracting, public road construction, logging road construction, radioactive waste cleanup on federal lands, or construction services performed in Indian Country for enrolled members. Prime contracting Elements of custom prime contracting: Generally, the prime contractor on a custom construction job is a contractor who is hired by the owner of the land (or person having the rights of ownership such as lessee) to complete an entire job according to contract specifications. The custom prime contractor may perform the construction services or hire others to perform some, or all, of the work. Excise tax reporting: Gross receipts from prime contracting on a custom construction job are taxable under the Retailing B&O tax classification and are subject to retail sales tax unless a specific exemption applies. Custom prime contractors as consumers: The prime contractor is a consumer of all items that are not incorporated into the final project. In other words, a prime co