Contractors Beware: Post-Award Sales Tax Increases May Reduce the Profitability of a Project


In response to the economic downturn, many states and municipalities enacted sales tax increases to combat budget deficits and maintain services. Although a sales tax increase occasionally can stimulate the construction industry when those funds are used to maintain or start construction projects, it also may negatively impact contractors when the increase occurs after the contract is awarded, making it important to know who is responsible for a post-award sales tax increase on a construction project.

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Published In: General Business Updates, Construction Updates, Government Contracting Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joe Darr, Moye, O'Brien, O'Rourke, Pickert & Dillon, LLP | Attorney Advertising

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