Hey everyone! I'm in the middle of a home extension project in New York and just discovered the NYS ST-124 form for the capital improvement tax exemption. When I signed the contract, there was sales tax added, and I had no idea about this exemption at that time. Now that we're about 75% through the renovation, I brought it up to my General Contractor (GC), but he claims he's never heard of this form. Do I have any options to have him remove the sales tax from our contract at this stage? We still have several payments left. I want to handle this calmly without causing issues. Any advice would be greatly appreciated!
1 Answer
According to the state guidelines, a contractor isn’t obliged to accept the ST-124 form. If they don't accept it and still charge sales tax on work you believe qualifies for the exemption, you can apply for a refund directly with the Tax Department. Honestly, it’s a bit sketchy that your GC hasn’t heard of it. You might want to inform him that you're considering filing for a refund, as that should motivate him to reconsider the tax situation.
That sounds like a solid plan! And just to clarify, when you file for a refund with the state, do you just add that to your tax return?