The sales and use tax treatment of a construction contractor is complicated by the varying roles that a contractor may assume. Contractors can act as retailers or consumers, may perform repairs to either real or tangible personal property, and may perform a project management function. Each of these activities has an impact on the sales and use tax treatment of the contractor. In a few taxing jurisdictions, the type of contract can affect the tax treatment of the contractor. Many states also impose special excise or gross receipts taxes on contractors’ sales. Thus, contractors need to exercise caution when dealing with sales and use taxes and other local taxes to avoid incurring unnecessary or unwarranted tax liabilities. Upon completing this course, you should be able to: Determine how a construction contractor’s varying roles can affect its sales and use tax liability; Identify how to distinguish between real estate and tangible personal property and the importance of that distinction to construction contractors and their customers; Recognize when contractors should act as retailers and when they should act as consumers; Identify the implications of the dual role for contractors acting as retailers and consumers on the contractors and their customers; Explain the potential impact on the construction contractor and tax-exempt entity when the contractor performs a contract for a tax-exempt entity; Be able to apply the proper treatment to contractor repair transactions; and Recognize sales tax issues related to scaffolding charges, other equipment, and supply purchases.