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Scr\'i ng ~~ ~ -.--. ... . . S t J t (,~ . .;, ..... ~-~~-- -- =~~~ ~~~ & Chapter Leadership - Sales tax ruling affects purchases of equipDlent, Dlaterials on projects Private practice firms and public sector engi- neers n~d to take note of a recent State Comp- troller'5 .ruling that wi!! affect the financial and contract asp~cts of their projects. The recently passed tax bill (HB 11) enar.ted by the Legisla- ture pro\;des that contractoI'S may no longer issu.e an exemp- tio~ certifica te when pttrchas. ing ma t~ri als fOT use on a new constTuctlon project for ex- empt organizations other than school dislTicts and nonprofit hospitals, unless the project qualifies for the prior contract exemp- tion. .. " ..""". ._.".::.;". ,_. ".: . SeEa!.ated' contractS~~whiCh separate charges for mm~n.~!~JX:.9m~llarges for labor may still be used in perfonning new-construction projects for all other exempt organizations. (Example: cities, co~ntlesl churches, etc.) .The separate charges for materials and labor must be included in the exe- -...... ..... ..'. _.. ..... - - --. - -.. cuted contract. :....Under a separated contract, the contractor be- :-~~~es"ci s'ener~of ma'terfals. incorporated into the project: (Example: bricks, lumber, cOl'\crete, paint, NSPE Conference set for Bedford in October etc,) As a seller, the contractor mav issue a resale certificate in lieu of paying the sales tax at the tir:-e of purChas~.,~:~~"~tTacto~~~~~~~~e!"re-~ celve an exemption certifIcate frOIi'i"the-exempt orga~z~ tio~ for. the .materiaJs,.:-This .... :'. .c-:. ... procedure may not be used for materials which do not become ' a part of the finished project. " (Example: equipment rentals, fornl materia~, etc.). To use this procedu're, the contractor-- must have a sales tax permit issued by the Comptroller. The statement of the separate charges ,must be in the contract and can be in the following form: Materials: $ Services: $ Total: $ ___ The contractor performing the new construction project 'will fill in the blanks when executing the contract.The net result will be that contractors who have inadvertently failed to pay sales tax on new equipment assigned to a project will now be subject to pay the sales tax. NSPE's Southwestern Regionill Conference will be in Bedford, Texas, October 3-5. This year's con- ference will focus on education and professional regi:;tration. Sarurday morning's agenda will addr~~s society activities, Don Hiatte, NSPE prc~id€nt. Joe Paul Jor.es, NSPE president-elect, and Di3ve Dorches- ter, TSPE prt'~ident, will participate in this ~es- sion. Dallas, Preston Trail, Mid-Cities, Fort Worth, and Den ton chapters have agreed to co-host the event. Please note the registration form on page 3. Lodging reservations m~st be made no later th~n September 12 and registration received forms no laler than ~ptember 20, Please encour- age y(\ur members to attend, They will find the mCPling very informative.