APPENDIX 6A. DETAILED DATA FOR EQUIPMENT PRICE MARKUPS

TABLE OF CONTENTS

6A.1 DETAILED DATA FOR AIR-CONDITIONING EQUIPMENT WHOLESALE 

DISTRIBUTORS .......................................................................................................... 6A-1

6A.2 DETAILED DATA FOR MANUFACTURERS OF PREFABRICATED 

COMMERCIAL BUILDINGS ..................................................................................... 6A-2

6A.3 DETAILED MECHANICAL CONTRACTOR DATA ............................................... 6A-4

6A.4 DETAILED GENERAL CONTRACTOR COST DATA ............................................ 6A-5

6A.5 ESTIMATION OF REGIONAL MARK-UP VARIATION ........................................ 6A-5

6A.6 STATE SALES TAX RATES .................................................................................... 6A-11

LIST OF TABLES

Table 6A.1.1 Costs and Expenses for Air-Conditioning Equipment Wholesale Distributors .. 6A-1

Table 6A.2.1 Costs and Expenses for Manufacturers of Prefabricated Wood Buildings ......... 6A-2

Table 6A.2.2 Costs and Expenses for Manufacturers of Prefabricated Metal Buildings ......... 6A-3

Table 6A.2.3 Costs and Expenses for Manufacturers of Prefabricated Concrete Buildings .... 6A-3

Table 6A.3.1 Costs and Expenses for Mechanical Contractors ................................................ 6A-4

Table 6A.4.1 Costs and Expenses for General Contractors ...................................................... 6A-5

Table 6A.5.1 Regional Costs and Expenses for Air-Conditioning Equipment Wholesale 

Distributors ....................................................................................................... 6A-6

Table 6A.5.2 Markups for Air-Conditioning Equipment Wholesale Distributors by State ..... 6A-7

Table 6A.5.3 Mechanical Contractor Baseline Markups by State ............................................ 6A-8

Table 6A.5.4 Commercial General Contractor Baseline Markups by State ............................. 6A-9

Table 6A.6.1 Combined State and Local Sales Tax Rates (Percent) ...................................... 6A-11

6A-i 
APPENDIX 6A. DETAILED DATA FOR EQUIPMENT PRICE MARKUPS

6A.1 DETAILED DATA FOR AIR-CONDITIONING EQUIPMENT WHOLESALE 

DISTRIBUTORS 

Chapter 6 provides summary revenues and costs used to calculate national baseline and 

incremental markups for wholesale distributors of single package vertical unit equipment based 

on data collected from a survey of members of the Heating, Air-conditioning & Refrigeration

Distributors International (HARDI) trade organization. Single package vertical units (SPVUs) 

are a not-separately-reported, small component of the overall HARDI members’ business, but the 

HARDI survey provides the most detail available on wholesale distributors of air-conditioning 

equipment. Table 6A.1.1 provides more complete detail on the elements of cost provided in 

chapter 6. 

Table 6A.1.1 Costs and Expenses for Air-Conditioning Equipment Wholesale Distributors

Item Percent of Revenue* Scaling

Cost of Goods Sold 73.9

Gross Margin 26.1

Payroll Expenses 15.1

Baseline

Executive salaries and bonuses 1.6

Branch manager salaries and commissions 1.3

Sales executive salaries and commissions 0.5

Outside sales salaries and commissions 2.3

Inside/counter sales/wages 2.6

Purchasing salaries/wages 0.5

Credit salaries/wages 0.2

IT salaries/wages 0.2

Warehouse salaries/wages 1.4

Accounting salaries/wages 0.5

Delivery salaries/wages 0.8

All other salaries/wages and bonuses 0.8

Payroll taxes 1.0

Group insurance 1.0

Benefit plans 0.4

Occupancy Expenses 3.5

Utilities: heat, light, power, water 0.4

Telephone 0.3

Building repairs and maintenance 0.3

Rent or ownership in real estate 2.5

Other Operating Expenses 5.2

Baseline and Incremental

Sales expenses 0.9

Insurance 0.2

Depreciation 0.4

Vehicle expenses 1.2

Personal property taxes/licenses 0.1

Collection expenses 0.3

Bad debt losses 0.2

Data processing 0.3

Employee training 0.1

All other operating expenses 1.5

6A-1 
Table 6A.1.1 (cont) 

Item Percent of Revenue Scaling

Total Operating Expenses 23.8 

Baseline and

Incremental 

Operating Profit 2.3 

Other income 0.4 

Interest expense 0.4 

Other non-operating expenses 0.0 

Profit Before Taxes 2.3 

Source: Heating, Air-conditioning & Refrigeration Distributors International. 2013. 2013 Profit Report (2012 Data). Profit Planning 

Group, Boulder, Colorado.(Available at: http://www.hardinet.org/Profit-Report ). (Last accessed February 12, 2014.)

* The wholesaler costs and expenses are percentage values as opposed to the per-dollar of sales revenue values given in chapter 6.

6A.2 DETAILED DATA FOR MANUFACTURERS OF PREFABRICATED 

COMMERCIAL BUILDINGS

Based on U.S. Census Bureau data, chapter 6 provides revenues and costs for these 

manufacturers in aggregated form. Table 6A.2.1 through Table 6A.2.3 show the complete 

breakdown of costs and expenses provided by the U.S. Census Bureau. The column labeled 

“Scaling” in each table indicates which expenses DOE assumed to scale with only the baseline 

markup and which scaled with both the baseline and incremental markups. As described in 

chapter 6, only those expenses that scale with baseline and incremental costs are marked up 

when there is an incremental change in equipment costs. 

Table 6A.2.1 Costs and Expenses for Manufacturers of Prefabricated Wood Buildings 

Item Dollar Value

$

Percentage

% Scaling

Total Cost of Equipment Sales 3,030,470 67.13

Cost of materials and payroll 3,030,470 67.13

Gross Margin 1,484,090 32.87

Payroll Expenses 250,648 5.55

Baseline

Employer’s cost for health insurance 86,026 1.91

Employer’s cost for defined benefit pension plans 21,547 0.48

Employer’s cost for defined contribution pension plans 14,802 0.33

Employer’s cost for other fringe benefits 128,273 2.84

Occupancy Expenses 84,148 1.86

Building and machinery rentals 46,645 1.03

Communications services 7,938 0.18

Repair and maintenance of buildings and machinery 18,737 0.42

Refuse removal, including hazardous 10,828 0.24

Other Operating Expenses 331,312 7.34

Baseline and 

Incremental

Total depreciation 60,129 1.33

Temporary and staff leasing expenditures 24,058 0.53

Expensed computer hardware, other equipment, and software 2,650 0.06

Data processing and other expensed computer services 1,598 0.04

Advertising and promotional services 32,172 0.71

Professional and technical services 25,522 0.57

Taxes and license fees 19,271 0.43

All other expenses 165,912 3.68

Net Profit Before Income Taxes 817,982 18.12

U.S. Census Bureau. 2007. Prefabricated Wood Building Manufacturing. Sector 32: 321992. EC0731I1 Manufacturing: Industry Series: Detailed 

Statistics by Industry for the United States: 2007. (Last accessed October 29, 2013.) <

http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_31I1&prodType=table> 

6A-2 
Table 6A.2.2 Costs and Expenses for Manufacturers of Prefabricated Metal Buildings 

Item Dollar Value

$

Percentage

% Scaling

Total Cost of Equipment Sales 5,506,361 68.78

Cost of materials and payroll 5,506,361 68.78

Gross Margin 2,499,387 31.22

Payroll Expenses 349,827 4.37

Baseline

Employer’s cost for health insurance 123,012 1.54

Employer’s cost for defined benefit pension plans 30,176 0.38

Employer’s cost for defined contribution pension plans 24,196 0.30

Employer’s cost for other fringe benefits 172,443 2.15

Occupancy Expenses 142,196 1.78

Building and machinery rentals 74,271 0.93

Communications services 12,024 0.15

Repair and maintenance of buildings and machinery 44,443 0.56

Refuse removal, including hazardous 11,458 0.14

Other Operating Expenses 747,875 9.34

Baseline and 

Incremental

Total depreciation 108,020 1.35

Temporary and staff leasing expenditures 41,369 0.52

Expensed computer hardware, other equipment, and software 7,021 0.09

Data processing and other expensed computer services 8,527 0.11

Advertising and promotional services 31,679 0.40

Professional and technical services 53,724 0.67

Taxes and license fees 27,813 0.35

All other expenses 469,722 5.87

Net Profit Before Income Taxes 1,259,489 15.73

Source: U.S. Census Bureau. 2007. Prefabricated Metal Building and Component Manufacturing. Sector 33: 332311. EC0731I1 Manufacturing: 

Industry Series: Detailed Statistics by Industry for the United States: 2007. (Last accessed October 29, 2013.) <

http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_31I1&prodType=table > 

Table 6A.2.3 Costs and Expenses for Manufacturers of Prefabricated Concrete Buildings

Item Dollar Value

$

Percentage

% Scaling

Total Cost of Equipment Sales 7,205,678 56.96

Cost of materials and payroll 7,205,678 56.96

Gross Margin 5,444,670 43.04

Payroll Expenses 775,020 6.13

Baseline

Employer’s cost for health insurance 271,343 2.14

Employer’s cost for defined benefit pension plans 59,026 0.47

Employer’s cost for defined contribution pension plans 54,200 0.43

Employer’s cost for other fringe benefits 390,451 3.09

Occupancy Expenses 408,246 3.23

Building and machinery rentals 164,436 1.30

Communications services 19,521 0.15

Repair and maintenance of buildings and machinery 163,484 1.29

Refuse removal, including hazardous 60,805 0.48

6A-3 
Table 6A.2.3 (cont)

Item Dollar Value

$

Percentage

% Scaling

Other Operating Expenses 2,071,735 16.38

Baseline and 

Incremental

Total depreciation 348,026 2.75

Temporary and staff leasing expenditures 93,289 0.74

Expensed computer hardware, other equipment, and software 9,020 0.07

Data processing and other expensed computer services 6,164 0.05

Advertising and promotional services 25,788 0.20

Professional and technical services 208,410 1.65

Taxes and license fees 58,824 0.46

All other expenses 1,322,214 10.45

Net Profit Before Income Taxes 2,189,669 17.31 Baseline and 

Incremental

Source: U.S. Census Bureau. 2007. Other Concrete Product Manufacturing Sector 32: 327390. EC0731I1 Manufacturing: Industry Series: 

Detailed Statistics by Industry for the United States: 2007. (Last accessed October 29, 2013.)

<http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_31I1&prodType=table>

6A.3 DETAILED MECHANICAL CONTRACTOR DATA

Chapter 6 provides mechanical contractor revenues and costs in aggregated form. The 

more disaggregated breakdown of costs used to scale the incremental markup is shown in Table 

6A.3.1 by both dollar value and percentage terms from the 2007 Economic Census; only the 

categories in the “Scaling” column of Table 6A.3.1 that scaled with both the baseline and 

incremental markups are marked when there is an incremental change in equipment costs. 

Table 6A.3.1 Costs and Expenses for Mechanical Contractors 

Item Dollar Value

$

Percentage*

% Scaling

Total Cost of Equipment Sales 107,144,428 67.80

Cost of materials, components, and supplies 59,023,964 37.35

Payroll, construction workers 31,373,558 19.85

Cost of construction work subcontracted out to others 13,646,192 8.64

Cost of selected power, fuels, and lubricants 3,100,714 1.96

Gross Margin 50,895,129 32.20

Payroll Expenses 27,626,376 17.48

Baseline

Fringe benefits, all employees 13,585,040 8.60

Payroll, other employees 14,041,336 8.89

Occupancy Expenses

Rental cost for machinery, equipment, and buildings + cost of 

repairs to buildings and other structures + purchased 

communication services

3,436,208 2.17

Other Operating Expenses 6,165,776 3.90

Baseline and

Incremental

Depreciation charges during year 2,297,550 1.50

Computers + insurance and other business services + 

advertising and promotions + taxes and license fees 3,868,226 2.40

Net Profit Before Income Taxes 13,666,769 8.60

Source: U.S. Census Bureau. 2007. Sector 23: 238220. Plumbing, heating, and air-conditioning contractors. EC0723I1: Construction: Industry 

Series: Preliminary Detailed Statistics for Establishments: 2007. (Last accessed October 29, 2013.)

<http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_23I1&prodType=table> 

* Mechanical contractor costs and expenses are first presented as total dollar values and then converted to percentage values. 

6A-4 
6A.4 DETAILED GENERAL CONTRACTOR COST DATA

Based on U.S. Census Bureau data, chapter 6 provides general contractor revenues and 

costs in aggregated form. Table 6A.4.1 shows the complete breakdown of costs and expenses 

provided by the U.S. Census Bureau. The column labeled “Scaling” in Table 6A.4.1 indicates 

which expenses DOE assumed to scale with only the baseline markup and which scaled with 

both the baseline and incremental markups. As described in chapter 6, only those expenses that 

scale with baseline and incremental costs are marked up when there is an incremental change in 

equipment costs. 

Table 6A.4.1 Costs and Expenses for General Contractors 

Item Dollar Value

$

Percentage*

% Scaling

Total Cost of Equipment Sales 250,657,006 76.2

Baseline

Cost of materials, components, and supplies 74,148,280 22.5

Payroll, construction workers 16,449,830 5.0

Cost of construction work subcontracted out to others 157,873,840 48.0

Cost of selected power, fuels, and lubricants 2,185,056 0.6

Gross Margin 78,113,967 23.7

Payroll Expenses 25,318,870 7.7

Fringe benefits, all employees 8,666,079 2.6

Payroll, other employees 16,652,791 5.1

Occupancy Expenses 3,301,046 1.0

Rent, communications, maintenance, and utilities 3,301,046 1.0

Other Operating Expenses 5,079,007 1.5

Baseline and

Incremental

Depreciation charges during year 1,581,228 0.5

Computing, accounting services, advertising, insurance, and 

other $3,497,779 1.06

Net Profit Before Income Taxes 44,415,044 13.5

Source: U.S. Census Bureau. 2007. Sector 23: 236220. Commercial and institutional building construction. EC0723I1: Construction: Industry 

Series: Preliminary Detailed Statistics for Establishments: 2007. (Last accessed October 29, 2013.)

<http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_23I1&prodType=table> 

* General contractor costs and expenses are first presented as total dollar values and then converted to percentage values. This is in contrast to 

the cost per dollar of sales revenue values shown in chapter 6.

6A.5 ESTIMATION OF REGIONAL MARK-UP VARIATION

Table 6A.5.1 through Table 6A.5.4 show how air-conditioning equipment wholesale 

markups, mechanical contractor markups, and general contractor markups vary across the 

country. 

6A-5 
Table 6A.5.1 Regional Costs and Expenses for Air-Conditioning Equipment Wholesale 

Distributors

Northeast Mid 

Atlantic Southeast Great Lakes Central Southwest West Nation

Typical Net Sales 

(thousand $) 18,777 54,921 29,797 41,961 39,809 45,257 53,390 39,790 

Percent of Sales:

Cost of Goods Sold 73.0 73.8 75.2 73.9 73.3 74.2 71.2 73.9

Gross Margin 27.0 26.2 24.8 26.1 26.7 25.8 28.8 26.1

Payroll Expenses 17.8 15.9 14.3 15.4 14.9 14.5 15.8 15.1 

Occupancy 

Expenses 3.7 3.5 3.2 3.5 3.4 3.0 5.2 3.5 

Other Operating 

Expenses 5.1 5.2 5.3 5.8 5.0 5.1 5.4 5.2 

Operating Profit 0.4 1.6 2.0 1.4 3.4 3.2 2.4 2.3 

Baseline Markup 1.370 1.355 1.330 1.353 1.364 1.348 1.404 1.353 

Incremental 

Markup 1.075 1.092 1.097 1.097 1.115 1.112 1.110 1.101 

Source: Heating, Air-conditioning & Refrigeration Distributors International. 2013. 2013 Profit Report (2012 Data). Profit Planning Group, 

Boulder, Colorado. (Available at: <http://www.hardinet.org/Profit-Report>). 

6A-6 
Table 6A.5.2 Markups for Air-Conditioning Equipment Wholesale Distributors by State

State Markup Rate Relative Markups

Name Region Baseline Incremental Baseline Incremental

Alabama SE 1.330 1.097 0.983 0.996

Alaska W 1.404 1.110 1.038 1.007

Arizona W 1.404 1.110 1.038 1.007

Arkansas SW 1.348 1.112 0.996 1.009

California W 1.404 1.110 1.038 1.007

Colorado C 1.364 1.115 1.008 1.012

Connecticut NE 1.370 1.075 1.012 0.976

Delaware MA 1.355 1.092 1.001 0.992

District Of Columbia MA 1.355 1.092 1.001 0.992

Florida SE 1.330 1.097 0.983 0.996

Georgia SE 1.330 1.097 0.983 0.996

Hawaii W 1.404 1.110 1.038 1.007

Idaho W 1.404 1.110 1.038 1.007

Illinois C 1.364 1.115 1.008 1.012

Indiana GL 1.353 1.097 1.000 0.996

Iowa C 1.364 1.115 1.008 1.012

Kansas GL 1.353 1.097 1.000 0.996

Kentucky C 1.364 1.115 1.008 1.012

Louisiana SW 1.348 1.112 0.996 1.009

Maine NE 1.370 1.075 1.012 0.976

Maryland MA 1.355 1.092 1.001 0.992

Massachusetts NE 1.370 1.075 1.012 0.976

Michigan GL 1.353 1.097 1.000 0.996

Minnesota C 1.364 1.115 1.008 1.012

Mississippi SE 1.353 1.097 1.000 0.996

Missouri C 1.364 1.115 1.008 1.012

Montana W 1.404 1.110 1.038 1.007

Nebraska C 1.364 1.115 1.008 1.012

Nevada W 1.404 1.110 1.038 1.007

New Hampshire NE 1.370 1.075 1.012 0.976

New Jersey MA 1.355 1.092 1.001 0.992

New Mexico SW 1.348 1.112 0.996 1.009

New York NE 1.370 1.075 1.012 0.976

North Carolina SE 1.330 1.097 0.983 0.996

North Dakota C 1.364 1.115 1.008 1.012

Ohio GL 1.353 1.097 1.000 0.996

Oklahoma SW 1.348 1.112 0.996 1.009

Oregon W 1.404 1.110 1.038 1.007

Pennsylvania MA 1.355 1.092 1.001 0.992

Rhode Island NE 1.370 1.075 1.012 0.976

South Carolina SE 1.330 1.097 0.983 0.996

South Dakota C 1.364 1.115 1.008 1.012

Tennessee SE 1.330 1.097 0.983 0.996

Texas SW 1.348 1.112 0.996 1.009

Utah W 1.404 1.110 1.038 1.007

Vermont NE 1.370 1.075 1.012 0.976

Virginia MA 1.355 1.092 1.001 0.992

Washington W 1.404 1.110 1.038 1.007

West Virginia GL 1.353 1.097 1.000 0.996

Wisconsin C 1.364 1.115 1.008 1.012

Wyoming C 1.364 1.115 1.008 1.012

6A-7 
Table 6A.5.3 Mechanical Contractor Baseline Markups by State 

State Number of 

Firms

Value of 

Construction 

$1,000

Cost of 

Subcontract 

Work* 

$1,000

Cost of 

Materials*

$1,000

Construction 

Payroll 

$1,000

Baseline 

Markup** †

Relative 

Markup

Alabama 1,370 2,010,305 113,782 876,341 411,100 1.435 0.972

Alaska 214 583,171 52,245 171,575 120,909 1.692 1.146

Arizona 2,036 3,522,116 179,103 1,508,903 638,469 1.514 1.025

Arkansas 908 1,065,754 68,417 461,924 213,054 1.434 0.971

California 8,076 16,726,969 1,070,065 6,330,469 3,464,667 1.539 1.043

Colorado 1,955 3,056,988 261,734 1,195,057 627,663 1.467 0.993

Connecticut 1,375 1,704,668 145,740 628,720 361,411 1.501 1.016

Delaware 307 481,900 D D 163,343 1.421 0.962

District of 

Columbia 27 34,600 D D 50,439 1.458 0.988

Florida 6,004 9,061,426 783,859 3,736,811 1,733,721 1.449 0.981

Georgia 2,501 4,700,799 365,010 2,224,110 740,722 1.412 0.956

Hawaii 288 800,221 46,753 270,723 137,646 1.758 1.191

Idaho 731 900,698 62,252 387,181 167,732 1.459 0.988

Illinois 3,846 7,641,642 602,251 2,833,489 1,622,307 1.511 1.023

Indiana 2,021 4,002,323 431,558 1,319,523 854,157 1.536 1.040

Iowa 1,182 1,868,483 144,869 801,239 359,775 1.431 0.969

Kansas 1,019 1,395,359 106,307 580,764 279,636 1.443 0.978

Kentucky 1,177 1,747,925 128,902 674,500 353,958 1.510 1.023

Louisiana 1,505 1,997,044 162,063 776,784 378,582 1.516 1.027

Maine 626 580,816 46,692 234,993 113,162 1.471 0.996

Maryland 1,954 5,329,135 698,381 2,009,957 1,031,222 1.425 0.965

Massachusetts 2,301 4,099,301 488,098 1,475,525 817,754 1.474 0.998

Michigan 2,782 4,420,638 604,850 1,569,113 841,985 1.466 0.993

Minnesota 1,600 3,402,921 386,669 1,230,126 698,535 1.470 0.995

Mississippi 722 1,025,452 76,709 449,851 189,011 1.433 0.970

Missouri 1,714 3,335,124 345,285 1,319,142 689,171 1.417 0.960

Montana 409 483,578 42,988 216,792 85,678 1.400 0.948

Nebraska 709 1,004,296 94,170 455,264 205,904 1.330 0.900

Nevada 616 2,327,842 121,091 988,605 490,859 1.454 0.985

New 

Hampshire 641 620,761 39,784 D 128,512 1.472 0.997

New Jersey 3,467 5,062,336 496,174 1,825,407 1,015,432 1.517 1.027

New Mexico 697 891,914 67,987 356,961 170,711 1.497 1.014

New York 5,836 10,364,779 1,219,468 3,568,182 1,972,687 1.533 1.038

North Carolina 3,293 5,111,396 341,129 2,288,841 1,001,832 1.407 0.953

North Dakota 210 360,683 36,037 148,617 70,403 1.414 0.958

Ohio 3,155 5,618,591 568,837 2,115,568 1,125,401 1.475 0.999

Oklahoma 1,281 1,352,943 94,153 581,079 249,032 1.464 0.991

Oregon 1,149 1,893,678 124,070 701,468 412,418 1.530 1.036

Pennsylvania 3,708 6,487,476 579,901 2,628,602 1,370,864 1.417 0.959

Rhode Island 451 631,202 56,234 229,692 124,727 1.537 1.041

South Carolina 1,642 1,991,303 126,123 847,690 352,877 1.501 1.016

South Dakota 359 386,186 11,037 158,375 69,605 1.616 1.094

Tennessee 1,711 2,595,613 189,293 1,159,952 484,997 1.415 0.958

Texas 5,992 10,810,308 823,920 4,605,624 2,102,520 1.435 0.972

Utah 1,211 1,746,398 146,052 769,140 319,812 1.414 0.958

Vermont 260 294,806 21,021 D 63,015 1.472 0.997

Virginia 2,565 4,623,151 347,055 1,791,740 960,534 1.492 1.010

6A-8 
Table 6A.5.3 (cont)

State Number 

of Firms

Value of 

Construction 

$1,000

Cost of 

Subcontract 

Work* 

$1,000

Cost of 

Materials*

$1,000

Construction 

Payroll 

$1,000

Baseline 

Markup** †

Relative 

Markup

Washington 1,826 4,111,543 370,741 1,546,819 816,533 1.504 1.018

West Virginia 416 655,100 D D 90,660 1.464 0.991

Wisconsin 1,756 2,926,545 234,962 1,125,779 662,893 1.446 0.979

Wyoming 266 289,391 14,391 128,922 54,792 1.461 0.989

Average Baseline Markup 1.477 1.000

Standard Deviation 0.070 -

Relative Standard Deviation 0.048 -

Source: U.S. Census Bureau. 2007. Sector 23: EC0723A1. Construction: Geographic Area Series: Detailed Statistics for Establishments: 2007. 

(Last accessed October 29, 2013.) <

http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_23A1&prodType=table >

* D indicates data that the Census Bureau withheld for some states.

** Markups may vary across states for several reasons, including differences in firm size.

† Due to sample size and/or magnitude of reporting error relative to the mean, disaggregated information is not provided for all of the Subcontract 

and Materials fields. In these cases, the state markup ratio is calculated as an average of neighboring states.

Table 6A.5.4 Commercial General Contractor Baseline Markups by State

State Number of 

Firms

Value of 

Construction 

$1,000

Cost of 

Subcontract 

Work*

$1,000

Cost of 

Materials 

$1,000

Construction 

Payroll 

$1,000

Baseline 

Markup**

Relative 

Markup

Alabama 633 7,553,561 3,142,180 2,501,750 322,103 1.266 0.964

Alaska 265 1,687,503 642,693 462,934 160,036 1.333 1.015

Arizona 819 12,151,583 6,656,491 2,155,210 406,803 1.318 1.004

Arkansas 363 3,187,913 1,692,656 702,877 128,726 1.263 0.962

California 4,004 43,866,759 21,658,487 8,848,328 2,043,055 1.348 1.026

Colorado 824 9,218,679 5,052,307 2,154,891 347,616 1.220 0.929

Connecticut 333 2,398,913 1,001,060 568,972 134,608 1.407 1.072

Delaware 106 727,553 D 473,670 34,453 1.309† 0.997

District of 

Columbia 76 918,723 D 752,351 39,924 1.301† 0.991

Florida 2,314 19,686,238 8,970,379 4,894,684 688,039 1.353 1.030

Georgia 1,187 10,541,824 4,378,539 2,376,511 434,611 1.466 1.117

Hawaii 160 2,341,014 611,589 1,026,726 164,179 1.299 0.989

Idaho 289 1,555,058 932,244 286,477 72,626 1.204 0.917

Illinois 1,487 13,909,785 6,759,955 2,680,350 766,444 1.363 1.038

Indiana 803 5,967,203 2,914,137 1,338,022 384,589 1.287 0.980

Iowa 439 3,405,782 1,468,258 914,427 202,747 1.317 1.003

Kansas 392 2,721,025 1,554,640 538,486 159,698 1.208 0.920

Kentucky 419 3,028,131 1,274,241 826,363 188,872 1.323 1.007

Louisiana 703 4,476,198 1,503,756 1,354,750 220,307 1.454 1.107

Maine 161 738,455 387,132 158,733 40,002 1.260 0.960

Maryland 734 8,299,684 4,804,346 1,287,093 381,411 1.282 0.976

Massachusetts 648 7,035,875 3,825,767 1,132,809 313,809 1.334 1.016

Michigan 920 5,363,993 2,326,876 1,187,051 310,436 1.403 1.068

Minnesota 688 8,203,910 3,816,569 1,643,239 448,796 1.388 1.057

Mississippi 301 3,593,463 866,722 972,035 256,086 1.715 1.306

Missouri 728 9,293,483 5,873,590 1,583,918 513,028 1.166 0.888

Montana 269 924,342 467,418 197,831 69,548 1.258 0.958

Nebraska 253 1,589,168 646,098 326,734 107,779 1.471 1.120

Nevada 400 6,285,128 2,629,790 1,787,729 286,641 1.336 1.017

6A-9 
Table 6A.5.4 (cont)

State Number of 

Firms

Value of 

Residential 

Construction 

$1,000

Cost of 

Subcontract 

Work*

$1,000

Cost of 

Materials 

$1,000

Construction 

Payroll 

$1,000

Baseline 

Markup**

Relative 

Markup

New Hampshire 181 1,040,005 471,082 279,766 65,433 1.274 0.970

New Jersey 1,086 7,331,413 2,482,814 1,504,714 433,751 1.658 1.263

New Mexico 259 1,537,718 713,317 386,032 111,202 1.270 0.967

New York 2,020 19,752,366 7,859,469 5,525,406 1,106,314 1.363 1.038

North Carolina 1,012 8,605,888 4,131,631 2,079,965 354,900 1.311 0.998

North Dakota 92 659,818 273,318 208,091 61,441 1.215 0.926

Ohio 1,517 8,889,511 4,643,584 1,998,093 516,571 1.242 0.946

Oklahoma 477 3,307,370 1,770,937 960,074 144,290 1.150 0.876

Oregon 511 3,273,641 1,796,721 600,045 209,362 1.256 0.957

Pennsylvania 1,495 11,676,721 5,234,232 2,724,050 786,704 1.335 1.017

Rhode Island 134 847,621 418,440 169,100 40,406 1.350 1.028

South Carolina 571 3,532,858 1,640,057 1,056,210 189,369 1.224 0.932

South Dakota 198 912,508 D 685,008 72,256 1.300† 0.990

Tennessee 572 7,004,112 4,029,200 1,427,963 327,399 1.211 0.922

Texas 2,665 26,821,716 12,682,589 6,586,538 1,062,916 1.319 1.005

Utah 433 3,141,938 1,535,706 916,514 152,251 1.206 0.919

Vermont 98 445,373 255,013 76,763 35,763 1.212 0.923

Virginia 897 8,926,148 4,493,845 1,885,213 380,145 1.321 1.006

Washington 901 9,936,986 5,662,260 2,037,260 577,048 1.201 0.914

West Virginia 162 563,473 D 359,610 65,332 1.292† 0.984

Wisconsin 691 7,248,667 D 5,407,430 484,111 1.368† 1.042

Wyoming 140 432,812 211,237 111,231 27,301 1.237 0.942

Average Baseline Markup 1.313 1.000

Standard Deviation 0.106

Relative Standard Deviation 0.080

Sources: U.S. Census Bureau. 2007. Sector 23: Subsectors 236220 (commercial and institutional building construction). Sector 23: EC0723A1: 

Construction: Geographic Area Series: Detailed Statistics for Establishments: 2007. (Last accessed October 29, 2013.) <

http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_23A1&prodType=table > 

* D indicates data that the Census Bureau withheld data for some states.

** Markups may vary across states for several reasons, including differences in firm size.

† Due to sample size and/or magnitude of reporting error relative to the mean, disaggregated information is not provided for all of the Subcontract 

and Materials fields. In these cases, the state markup ratio is calculated as an average of neighboring states.

6A-10
6A.6 STATE SALES TAX RATES 

Table 6A.6.1 shows how and sales tax rates vary across the country. 

Table 6A.6.1 Combined State and Local Sales Tax Rates (Percent) 

State

Combined 

State and 

Local Tax 

Rate

State

Combined 

State and 

Local Tax 

Rate

State Combined State and 

Local Tax Rate

Alabama 8.55 Kentucky 6.00 North Dakota 5.90

Alaska 1.35 Louisiana 8.75 Ohio 7.10

Arizona 7.15 Maine 5.50 Oklahoma 8.35

Arkansas 8.90 Maryland 6.00 Oregon 0.00

California 8.45 Massachusetts 6.25 Pennsylvania 6.40

Colorado 6.05 Michigan 6.00 Rhode Island 7.00

Connecticut 6.35 Minnesota 7.20 South Carolina 7.20

Delaware 0.00 Mississippi 7.00 South Dakota 5.40

Dist. of Columbia 5.75 Missouri 7.45 Tennessee 9.45

Florida 6.65 Montana 0.00 Texas 7.90

Georgia 7.05 Nebraska 6.00 Utah 6.70

Hawaii 4.40 Nevada 7.85 Vermont 6.05

Idaho 6.05 New Hampshire 0.00 Virginia 5.60

Illinois 8.05 New Jersey 6.95 Washington 8.90

Indiana 7.00 New Mexico 6.60 West Virginia 6.10

Iowa 6.85 New York 8.40 Wisconsin 5.45

Kansas 7.85 North Carolina 6.90 Wyoming 5.50

Source: The Sales Tax Clearing House (2013) (Last accessed Feb. 12, 2014) <www.thestc.com/STrates.stm>

6A-11