Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA construction business creates Texas sales tax nexus when it exceeds 500000 dollars in Texas revenue during the preceding twelve month period or establishes physical presence through project activity in the state.
Construction companies may create nexus through:
Construction operations often create both sales tax and use tax exposure.
Run Your Nexus Risk CheckTexas applies a 500000 dollar revenue threshold measured over a rolling twelve month period.
For construction businesses, this may include:
Revenue delivered into Texas counts toward economic nexus.
Construction activity in Texas may create physical presence nexus through:
Project presence alone 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 involve:
Improper classification of materials may create audit exposure.
Construction companies frequently incur use tax when:
Texas audits commonly examine purchase invoices and asset records.
If nexus existed but no sales tax permit was obtained, exposure may include:
Texas construction audits may review multiple prior years.
Project based activity frequently creates unintended nexus risk.
If your company performs projects, stores materials, or exceeds revenue thresholds, evaluate exposure before registering.
Run Your Nexus Risk CheckIdentify potential Texas construction nexus exposure before penalties escalate.