![]() ![]() The contractor does not need to charge sales tax on this service because the work is done in conjunction with a capital improvement project.Įxample: A property owner hires a landscaper to remove a tree from his yard. Before construction can begin, a tree adjacent to the current structure must be removed. The removal of shrubs and trees qualifies as a capital improvement only when done in conjunction with another capital improvement project.Įxample: A homeowner hires a contractor to build an addition to her home.
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