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In November 2017, the Department issued Information Bulletin #60 to reflect statutory changes made in response to the 2014 Lowe's case that had invalidated Indiana's rules for time-and-material contracts. Those changes re-instated the pre-Lowe's rule that sales tax must be charged on the marked-up material price on T&M contracts, not on the cost of those materials. The Bulletin provides updated guidance for both T&M and lump-sum contracts, as well as the treatment of materials purchased for tax-exempt jobs and off-site fabrication of materials. All contractors should review the Bulletin (attached below) to make sure their procedures are compliant, especially since sales and use tax audits of contractors is common. Please let us know if you have any questions about it.