Legal Question in Tax Law in New Jersey
In New Jersey should interior demolition compaanies charge sales tax on labor if the owner of the real property has issued an ST-8? Is this type of labor (interior demolition to make way for the new items being installed) considered part of capital improvement?
Asked on 3/15/11, 1:59 pm
1 Answer from Attorneys
Ronald Cappuccio
Ronald J. Cappuccio, J.D., LL.M.(Tax)
It depends on the work being done. Usually, if the demolition and rebuilding of the interior is part of the same project it is a capital improvement. If it is for fixtures, it may be taxable, whereas the removal of walls would not be sales taxable.
You should have your tax and business attorney review the agreement because the specific wording can determine the tax status.
I hope this helps!
Ron Cappuccio
www.TaxEsq.com
Answered on 3/17/11, 6:28 pm
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