Sales Tax Reimbursement on Construction Materials

Reimbursable Sales Tax

Contractors will be reimbursed for certain sales or use taxes paid to North Carolina for the purchase of materials to be used in construction projects for Duke University or Duke University Health System (hereinafter “the University”) that become a part of or are annexed to the building or structure. The proposal sum of each bidder shall not include such North Carolina sales or use taxes as these will be reimbursed separately.

In order to receive the separate sales tax reimbursement, the contractor shall provide the University with a detailed listing, from each subcontractor or other purchaser of materials, of North Carolina sales taxes paid on eligible purchases during each month on the Purchaser – Sales Tax Paid Details Form. Copies of invoices for materials purchased shall be attached to these listings. The general contractor will then aggregate the subcontractor, or purchaser, statements by county on the General Contractor – Sales Tax Paid Details Form. Both forms, along with copies of invoices, shall be submitted monthly during the construction phase of the project. Forms must be signed and dated. Examples and guidance (pdf) on how to fill these forms are attached to the forms.

In those instances where the contractor directly makes such eligible purchases of materials for use in the construction work and pays North Carolina sales or use tax on such materials, he shall provide a detailed listing as purchaser (on the Purchaser – Sales Tax Paid Details Form), as above.

Sales tax reimbursements will be reviewed and approved by the Corporate Tax Department prior to payment. In order to expedite contract payments, sales tax reimbursements shall be submitted separately.

The above forms were updated in November, 2014. DU is granting all contractors a transition period until March, 2015. DU will be accepting and processing the prior version of the forms during this transition period. Your reimbursement requests after March, 2015 must utilize the updated forms. Failure to do so will result in rejection of your submission.

Non-Reimbursable Sales Tax

Sales or use taxes paid to states other than North Carolina, or sales or use taxes paid to North Carolina on the purchase or rental of tools, equipment, and disposable supplies, including fuel, used in the construction work are not eligible for the separate reimbursement referenced above and should be included in the proposal sum of each bidder.