Pennsylvania BFR Partially Grants Construction Contractor’s Sales Tax Refund Claims

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision granting taxpayer a refund for sales and use tax plus applicable interest for certain purchases. Taxpayer, a construction contractor, had appealed the Board of Appeals’ denial of their request for a refund of tax paid on purchases of building machinery and equipment and certain nontaxable transactions that were transferred to exempt entities including the Pennsylvania Department of Transportation and several townships. The Board determined that taxpayer was entitled to a refund for purchases of items such as poles, traffic signal heads, controllers, and related services that qualified as exempt ...