Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA construction business creates California sales tax nexus when it exceeds the 500000 dollar economic nexus threshold or establishes physical presence through projects in the state.
Construction companies may create nexus through:
Construction businesses often face both sales tax and use tax exposure.
Run Your Nexus Risk CheckCalifornia economic nexus applies once total sales into the state exceed 500000 dollars in a calendar year.
For construction businesses, this may include:
Revenue delivered into California counts toward the threshold even if some services are not taxable.
Construction activity in California often creates physical presence nexus through:
Project based activity may establish nexus even below the economic threshold.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckConstruction contracts often include:
Improper classification of materials may create audit exposure.
Construction companies frequently incur use tax when:
Use tax assessments are common during construction audits.
If nexus existed but no seller permit was obtained, exposure may include:
Construction audits often review multiple prior years.
California Back Sales Tax Liability | California Sales Tax Audit Risk
Project based activity frequently creates unintended nexus.
If your company performs projects, stores materials, or exceeds revenue thresholds, evaluate exposure before registering.
Run Your Nexus Risk CheckIdentify potential construction nexus exposure before penalties escalate.