How Sales & Use Tax Applies to Construction Contracts with the United States Government
Generally speaking, the United States Government is immune from state taxation under the Supremacy Clause of the United States Constitution. Courts have ruled that states are precluded from taxing activities where the incidence of tax falls directly upon the federal government, its agencies, and instrumentalities. But what about construction contracts with the federal government where the contractor is the party that is providing and installing items on behalf of the federal government?
This article uses California as an example to briefly explain how tax […]