Material taxes and job taxes

- [Instructor] They say the only two things…for sure in life are death and taxes.…Construction projects certainly have their share of taxes.…It's important to understand how to calculate…and include taxes in your estimate.…You should become familiar with your state…and local policies involving the taxation…of construction materials, construction tools,…and even the direct job expenses.…You see, some projects are completely exempt from taxes,…such as projects being built…by not-for-profit agencies or municipalities.…

Some other projects may get tax breaks…from their state or local governments.…So while the whole project may not be taxable,…you still may have to add tax…on the materials procured for the project.…In addition to all this,…even if a project is completely tax exempt,…most times tool and equipment rental and consumable products…such as fuel and oil for a backhoe,…cutting and threading oil, rags or hand tools,…even first aid kits are usually taxable…because they are not attached to the construction project…