Tax Guide for Construction Contractors
Getting Started

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Construction contractors in California who sell or lease tangible personal property, which the law defines as an item that can be seen, weighed, measured, felt, or touched, are generally required to register with us for a seller's permit.

In most cases, if you perform construction contracts exclusively for the U.S. government, or if you are a general contractor who exclusively hires subcontractors to perform construction contracts, you are not required to register for a seller's permit. However, you are considered a "qualified purchaser" if any of the following conditions apply to you from your business operations:

  • Prior to January 1, 2024, you received at least $100,000 in gross receipts from business operations per calendar year;
  • Beginning January 1, 2024, through December 31, 2028, you make more than $10,000 in purchases subject to use tax (excluding vehicles, vessels, or aircraft) per calendar year if the use tax imposed on those purchases has not otherwise been paid to a retailer engaged in business in this state or authorized to collect the tax; or
  • Beginning January 1, 2029, you receive at least $100,000 in gross receipts from business operations per calendar year.

As a qualified purchaser, if you are not already registered, you must register with us for the Qualified Purchaser Program. For more information, see our guide on the Qualified Purchaser Program.

Whether starting out as a construction contractor, or growing your existing business, you'll find the information below helpful in maintaining your accounts with us.

Registration

Online Registration — Register with the CDTFA for a seller's permit or Consumer Use Tax Account, or add a business location to an existing account.

Filing and Payments