98-047
Response
July 8, 1998
REQUEST
LETTER
June
23,1998
Kerry:
I
have a client a licensed contractor, who, in the course of his business, tears out
old driveways
and
then takes the broken concrete or asphalt to a dump or gravel pit. At the
gravel pit operations, the material is usually recycled and reclaimed. The
concrete is crushed and used for
road
base.
At
the dump or other designated location, the dump fee does not usually have any
associated
sales
tax. Most gravel pits do not charge sales tax on the dump fee. However, one
gravel pit has
started
charging sales tax. We don't believe that it should be charged, particularly
where the
landfill
does not charge sales tax. In addition, the materials are recycled and resold.
Could
you please clarify for us if sales tax is applicable at the dump or the gravel
pit (1) if recycled and (2) it not recycled.
I
appreciate your help in this matter.
Sincerely
yours,
NAME
July
8, 1998
NAME
ADDRESS
CITY,
STATE ZIP
RE: Advisory
Opinion - Sales Tax and the Dumping Fee Charged to Dispose of Broken Asphalt
and Concrete
Dear
NAME,
We have received your request for an
advisory opinion as to whether sales tax is applied to the dumping fees charged
by a gravel pit when a licensed contractor disposes of broken asphalt and
concrete at the site. You also ask if
this determination would be affected by the fact that some of the broken
asphalt and concrete will be recycled, while some will not. We find that the fees are not subject to
sales tax. They are fees for nontaxable
services whether or not the broken asphalt and concrete is recycled.
Please contact us if you have any
other questions.
For
the Commission,
Joe
B. Pacheco
Commissioner
^^