Legal Question in Construction Law in California

SalesTax Increase

We have some contracts for construction executed prior to the vote to Increase Sales Tax. Do we have any right to pass on the increase sales tax to our customer the Owner or General Contractor? Is it Automatic or do we need to ask via Change Order Request? or are we stuck eating it?


Asked on 3/20/09, 7:21 pm

1 Answer from Attorneys
Bryan C. Becker Your Lawyer for Life.

Re: SalesTax Increase

You would have to review the contract, re; tax increases. If the contract does not speak to the possibility of an increase, and it was not specifically accounted for in your bid, you will have a hard time legally justifying the increase in contract price. If you would like to discuss, feel free to contact me.

Yours truly,

Bryan

877.201.8728

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Answered on 3/20/09, 8:06 pm


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