Real Property Contracts

A real property contract is a contract between a real property contractor and another person to a capital improvement to real property. Generally, Form E-589CI, Affidavit of Capital Improvement, must be issued and kept on file for a real property contract. Relevant technical publications regarding real property contractors are provided below.

The general State, applicable local, and applicable transit rates of sales and use tax apply to the sales price or purchase price of an item or service sold to a real property contractor for use by the real property contractor to fulfill a real property contract. The real property contractor is the consumer of the tangible personal property, digital property, or service that the real property contractor purchases, installs, or applies for other others to fulfill a real property contract and that becomes part of real property or used to fulfill the contract.

Technical Publications for Real Property Contractors