Out-of-state contractors

The following contractors are required to register with the Department of Revenue and are subject to excise taxes:

• Construction contractors who are responsible for construction activities within this state under any of the following categories:
  • Custom construction.
  • Government contracting.
  • Public road construction.
  • Extracting.
• Subcontractors that are responsible for construction activities within this state and who meet at least one of the nexus thresholds.

Use tax is due on all equipment brought into this state to perform construction if sales or use tax has not been paid to another state. The value subject to use tax is based on the fair rental value of such equipment if it is used in this state for a period not exceeding 180 days in any 12-month period. If the use exceeds 6 months, the use tax is based on the full market value of such equipment used here.

For more information see our Out-of-State Business guide.