General contractor added an additional 7% tax for agreed price

General contractor added an additional 7% tax for agreed price

Investor · OOS · Member since 2021 · 9 posts · 3 votes

Hey all,

A contractor I hired for a job added tax to the bid before signing the lease - is it legal to add tax above the agreed price?

And if it is, is it ok to add it both on material and labor?

Any advice will be appreciated, 

Thank you 🙏 

0Reply
17 views

2 Replies

Jump to latestLatest
  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

    @Julia Havia nope, there is no sales tax to the end user for a contracting job. He is either clueless or trying to be slick. He has to pay sales tax on materials….there no sales tax to you.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    It's not legal to add tax on labor since he won't be paying that tax to authorities.

    I suppose it's 'legal' to add tax to materials but it's incredibly greedy and stupid. Most Contractors would just add the tax to their materials and put that number in the bid.

    Or if you want to add the tax as a separate line item, fine, just don't do it at contract signing time.....

    Hopefully you didn't sign the contract? There are plenty of good Contractors out there.....

Join the conversationCreate a free account to reply, vote on answers and follow this thread.