If you like franchise tax, you'll love insurance tax. Don't forget we get fewer phone calls on Thursdays and Fridays. Call then and avoid the rush. A sign company bills its customers lump sum, not separating charges for installation from charges for materials. Once installed, these signs are improvements to realty.
Tax is due on the total charge for repairing, remodeling or restoring non-residential realty.
The sign company may use a resale certificate to purchase tax free the materials incorporated into its customers' realty when installing signs in or on existing buildings, pylons or poles. When the signs are installed on residential structures, in a space in a mall or a building that has not been previously occupied, or as a part of a new construction contract, the installation is new construction. No tax is due on lump-sum charges for new construction. Under these circumstances, the sign company owes tax on all materials used. It does not have evidence to prove which contracts represent the installation of signs in new buildings or previously unoccupied spaces.