Definitions:

• Real Property: fixed property, typically buildings and land. 
• Excavating: excavating is the process of making something hollow by removing the out the inner part; as by digging. 
• Masonry: the profession of building with stone, brick, concrete, etc. 
• Terrazzo: flooring material made of chips of marble or granite set in concrete and polished to give a smooth surface.
• Provision: a stipulation (a condition or requirement that is specified) in a contract or a legal document. 

LECTURE SCRIPT (you can also turn on close captioning by clicking the CC button):

The first question that should be asked when deciding the taxability of a construction service is,

“Who is Considered a Construction Contractor?”

Every state has a somewhat different definition.

Wisconsin defines a “real property contractor” as follows:

“Persons who perform real property construction activities and include persons engaged in activities such as building, electrical work, plumbing, heating, painting, steel work, ventilating, paper hanging, sheet metal work, bridge or road construction, well drilling, excavating, wrecking, house moving, landscaping, roofing, carpentry, masonry and cement work, plastering, and tile and terrazzo work.”

Real property is generally defined as fixed property, typically buildings and land.

Wisconsin does not specifically define or distinguish between general contractors or subcontractors in its sales and use tax code provisions.

In the next lecture, we’ll take a look at the different ways Wisconsin treats contractors.