Donald L. Oschwald

99-03

The Taxpayer is a roofing consultant to licensed contractors. In the ordinary course of his business, the Taxpayer uses a special tool he invented to drill into a customer’s roof and remove a cross section of the roof itself. The Taxpayer then evaluates the cross section to determine the condition of the roof. The Taxpayer was advised by a Department employee that he was performing construction services and should obtain Type 7 NTTCs from the contractors who hire him. The Taxpayer followed this advice. During a later audit, the taxpayer was told he was not performing a construction service and could not claim the deduction under Section 7-9-52. Based on testimony of a bureau chief with the Construction Industries Division, it was determined that the Taxpayer was performing construction services and was entitled to the deduction under Section 7-9-52. Protest granted.