There are two potential sales and use tax refund opportunities available to construction owners, developers and contractors as it relates to Site Safety Expenses and Bridge and Pipeframe rentals.
- Site Safety – NY courts have determined that NYS overreached in its application of the sales tax law on site safety expenses. The court ruled that site safety expenses incurred pursuant to NYC building code are not subject to sales tax. Refunds are available for sales or use tax paid on any open sales tax periods.
- Bridge and Pipeframe Rentals – it has been determined that sales and use tax may have been overpaid on bridge and pipeframe rentals if such rentals are part of a capital improvement and includes the installation, monthly rental and dismantling of the bridge and pipeframe.
There are a few items to look for to ascertain whether there could potentially be a refund opportunity.
- Look for Site Safety and Bridge and Pipeframe accounts on the GL;
- Review vendor listing;
- Ascertain if sales tax has been paid, assessed under audit or whether use tax was paid on the invoices.
- Confirm with the client that the site safety services were performed pursuant to NYC law related to monitoring of the construction sites and that bridge and pipeframe rentals are part of a capital improvement.