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It explains how tax collection and remittance duties differ between “time and material” contracts and other contract types, including how contractors may or may not act as retail merchants. The bulletin defines construction material, contractor, and conversion criteria, and clarifies when purchased material is taxable or exempt, including how nonprofits must provide an NP-1 exemption certificate.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":21,"@type":70,"position":76},"https://docshare.wps.com/template/invoices/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/sales-tax-information-bulletin-60-contractors-and-construction-material-purchases-of-construction-material-sales-of-construction-material/335293/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/sales-tax-information-bulletin-60-contractors-and-construction-material-purchases-of-construction-material-sales-of-construction-material/335293.png","ImageObject",442,249,{"name":88,"@type":89},"Melati","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-17","2026-09-21",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What does Sales Tax Information Bulletin #60 cover?","Question",{"text":109,"@type":110},"It covers Indiana sales and use tax treatment for contractors purchasing or selling construction material that is converted into real property, including taxability of materials and the related contracts.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"How do tax collection responsibilities differ for time and material contractors versus other contractors?",{"text":114,"@type":110},"Time and material contractors generally operate as retail merchants and must register and collect sales tax on the material portion of their contracts. Contractors under other contract types generally pay sales or use tax on their construction material and do not collect sales tax from customers for converting the material into real property.",{"name":116,"@type":107,"acceptedAnswer":117},"What qualifies as “construction material” under the bulletin?",{"text":118,"@type":110},"Construction material is tangible personal property to be converted into real property, such as items like doors, windows, cabinets, HVAC units, lumber, asphalt, concrete, fencing, and other listed examples. Items that typically remain personal property, such as computers and certain removable appliances and furniture, are not considered construction material.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},335293,1790507096,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":20,"category_name":21,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":136,"language":137,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":61,"update_tm":141,"read_time":47},962085570644,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","Sales Tax Information Bulletin \\#60  \nSubject: Contractors and Construction Material; Purchases of  \nConstruction Material; Sales of Construction Material  \nPublication Date: March 2024  \nEffective Date: Upon Publication  \nReferences: IC 6-2.5-1-5; IC 6-2.5-1-14.7; IC 6-2.5-1-14.9; IC 6-2.5-1-27.7; IC  \n6-2.5-3-2; IC 6-2.5-3-3; IC 6-2.5-4-1; IC 6-2.5-4-9; IC 6-2.5-5-3; IC 6-2.5-5-55; IC 6-2.5-8-9; 45 IAC 2.2-3-7 through 45 IAC 2.2- 3-12; 45 IAC 2.2-4-21 through 45 IAC 2.2-4-26  \nReplaces Bulletin \\#60, dated April 2023  \nDisclaimer: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.  \nSummary of Changes  \nApart from technical, nonsubstantive changes, this bulletin has been revised to note that nonprofits must provide an NP-1 exemption certificate instead of an ST-105 .  \nIntroduction  \nThe purpose of this bulletin is to address the application of Indiana gross retail (“sales”) tax and use tax with regard to the purchase or sale by a construction contractor of tangible personal property that is converted into real property. There is a difference in the tax collection and remittance requirements for construction material purchased by a contractor, which depends on whether the contractor is operating under a “time and material” contract or a contract that does not meet the definition of a time and material contract. Generally, a contractor operating under a time and material contract is a retail merchant that is selling the construction material that it incorporates into real property, and must be registered with the department and collect sales taxon the material portion of their contracts. Additionally, as retail merchants, such contractors may purchase construction material exempt from sales tax under the “sale for resale” exemption.  \nConversely, contractors operating under any other type of construction or installation contract (e.g., “lump sum” contracts) are not acting as retail merchants selling construction material. They  \nmust pay sales or use tax on their construction material (unless their customer could have purchased the material exempt themselves), but they consequently do not collect sales tax from their customers on the contracts to convert the construction material into real property.  \nThe bulletin explains in more detail how these rules affect the taxability of construction materials purchased by a contractor and the taxability of the contracts.  \nDefinitions  \n“Construction Material” means any tangible personal property to be converted into real property. Examples of construction material that may be converted into real property through incorporation or installation include, but are not limited to: doors, garage doors, windows, cabinets, garbage disposals, water heaters, water softeners, alarms, furnaces, central air conditioning units, gutters, carpeting and other flooring materials, drywall, lumber, asphalt, concrete, fencing, trees, shrubbery, and pre-fabricated construction material.  \nExamples of items that typically remain tangible personal property and, therefore, are not considered construction material include, but are not limited to: personal computers, televisions, refrigerators, stoves, dishwashers, clothes washers and dryers, window air conditioning units, and other removable items such as furniture.  \nConstruction material has been converted into real property when it has been attached to or incorporated into real property in such a way that would lead one to reasonably believe the construction material ","cbCaitIBo7FicxFl","https://ap.wps.com/l/cbCaitIBo7FicxFl","pdf",220297,13,"English","# Summary of Changes\n## Introduction\n## Definitions\n## Purchases of Construction Material\n## Time and Material Contractors","[{\"question\":\"What does Sales Tax Information Bulletin #60 cover?\",\"answer\":\"It covers Indiana sales and use tax treatment for contractors purchasing or selling construction material that is converted into real property, including taxability of materials and the related contracts.\"},{\"question\":\"How do tax collection responsibilities differ for time and material contractors versus other contractors?\",\"answer\":\"Time and material contractors generally operate as retail merchants and must register and collect sales tax on the material portion of their contracts. Contractors under other contract types generally pay sales or use tax on their construction material and do not collect sales tax from customers for converting the material into real property.\"},{\"question\":\"What qualifies as “construction material” under the bulletin?\",\"answer\":\"Construction material is tangible personal property to be converted into real property, such as items like doors, windows, cabinets, HVAC units, lumber, asphalt, concrete, fencing, and other listed examples. Items that typically remain personal property, such as computers and certain removable appliances and furniture, are not considered construction material.\"}]","Sales Tax Information Bulletin #60 - Contractors and Construction Material - Purchases of Construction Material; Sales of Construction Material | PDF",1790010411]