Are you in the construction industry and own a contracting business? Apply for your Contractor's Excise Tax License and provide your subcontractors with a Prime Contractor's Exemption Certificate for any non-qualified utility project before your project has begun.
A “prime contractors” is anyone entering into a contract for construction services or reality improvements with the property owner. Before starting work, every contractor is required to have a Contractor's Excise Tax License. The contractor’s excise tax is imposed on gross receipts for construction projects at a rate of 2%. Returns may be filed either on paper returns or electronically. To apply for your Contractor's Excise Tax License, please use the button below.
Except for projects for a qualified utility, the prime contractor is responsible for issuing a prime contractor's exemption certificate to each subcontractor. The prime contractor’s exemption certificate must be issued for each project. By issuing the exemption certificate, the prime contractor is responsible for remitting the contractor’s excise tax. Prime contractors are not allowed to deduct amounts paid to subcontractors in determining the gross receipts subject to the contractor’s excise tax. In addition to the contractor’s excise tax, prime contractors are responsible for making sure that sales or use tax has been paid on all materials incorporated into the project, including materials furnished by the project owner.
Subcontractors are responsible for the sales or use tax on construction materials they furnish for the contract.
If you are a prime contractor and need to furnish your subcontractors with exemption certificates, please use the link below to access our online form.
For information on qualified utilities, please see our Qualified Utilities Tax Fact.
For additional information regarding contractor's excise tax in an easy to follow guide, please see our Contractor’s Excise Tax Guide.
Visit our Contractor's Excise Tax for Businesses page to find out more about educational seminars, tax facts and additional Contractor's Excise Tax resources.