Posted by & filed under Legislative.

Purpose: This Informational Publication describes how materialmen may remit sales and use taxes on certain sales of building materials and services to real property as and when actually paid by the purchasers to whom the materialmen have extended credit, instead of remitting the full amount of tax at the time of the transaction as generally required by law.


Background: Generally, sellers of tangible personal property and taxable services must remit tax on the entire amount of the gross receipts from a transaction on the return for the period in which the transaction takes place. The pay-when-paid provision allows certain sellers of building materials and services related to these materials an exception to this general rule.


Definitions: A materialman, for the pay-when-paid provision, is a person who furnishes building materials or services to a contractor for the construction, raising, removal, or repair of a building or the improvement of real property. To be considered a materialman, a person must also be entitled under Chapter 847 of the Connecticut General Statutes to file a mechanic’s lien against the real property to ensure payment for the materials or services.

Building Materials means materials that are incorporated as an improvement or repair to real property. The term also includes tools and other items that are used to improve real property. The term contractor includes a general contractor, a subcontractor, a repairman, and a property owner acting as his or her own general contractor.


Qualifying for Pay-When-Paid Status: A person seeking Department of Revenue Services (DRS) permission to collect and remit sales tax on a qualifying transaction when actually paid by a contractor must file an application by July 1 of each year and demonstrate to the satisfaction of DRS that, in two out of the last four calendar quarters,

• The seller was a materialman as the term is used in Chapter 847;

• The materialman is authorized under Chapter 847 to put a mechanic’s lien on real property; and

• At least 50% of the materialman’s sales of building materials (not services) were to contractors.

DRS issues Form REG-20, Application for a Materialman to Remit Sales Tax Under the Pay-When-Paid Method. A materialman must file this application by July 1 each year in order to obtain pay-when-paid status. DRS will respond to a properly completed application with a letter authorizing the materialman to use the pay-when-paid method on qualifying transactions.

Deadline to Submit Application: DRS only accepts applications filed on or before July 1 of each year. The applications are considered timely filed if received, or if the date shown by the U.S. Post Office cancellation mark is, on or before this date.

CT Pay-When-Paid Application 2014

CT Pay-When-Paid Method for Materialmen


Posted by & filed under Events.

The Lumber Dealers Association of Connecticut presents its 45th Annual Golf Outing on Wednesday, June 4th, 2014.  The event will be held at The Tunxis Plantation County Club on 89 Town Farm Road in Farmington, CT.

Join us for a Continental Breakfast from 8:30-10:30 a.m. with a Shotgun Start at 10:30am, BBQ Lunch, Cocktail Reception and Dinner.

You must register by May 31st!

2014 Golf Registeration

Posted by & filed under Webinar.

April 23, 2014 2:00pm EDT

Jackson LewisWebinar Wednesdays 2013-14
Is your employee handbook a ticking time bomb? Do you have policies in place to protect the company against potential liability and lessen the likelihood of unwanted behavior. Does your manual adequately address today’s technology revolution as well as the Labor Board’s new involvement with non-union employers? Is your manual an asset or a liability at unemployment benefits hearings. What are some of the most common mistakes employers make in policy manuals? These are some of the issues that will be explored in this interactive webinar.

Posted by & filed under Webinar.

April 16, 2014 2:00pm EDT

John Zimmer, Receivable Training AssociatesWebinar Wednesdays 2013-14
Collecting Your Accounts Receivable while maintaining Customer Good Will is one of the most difficult aspects of maintaining and growing a Customer Relationship. Sales and Customer Service have worked hard to obtain and
develop this relationship and your Collection efforts can either enhance or undermine how your Customer perceives your company. This webinar will show you how to keep your Accounts Receivable (And DSO) on track by including the foundation skills and techniques used by top Collectors to persuade Customers to Pay Your Account Promptly. We will highlight how you can use Listening Skills, Negotiation Techniques and Overcoming Customer Objections to help you Collect Your Accounts Receivable Faster and With More Confidence Than Ever!

Posted by & filed under Webinar.

April 9, 2014 2:00pm EDT

Jim Enter, AARTWebinar Wednesdays 2013-14
At the moment inventory control is a problem for many dealers. It’s very difficult to keep inventory in check without reducing customer service. Inventory is expensive and yet you must keep a balance on hand. The goal of this webinar is to help you gather the information necessary to keep the same level of service your customers have grown to expect while keeping your expenses for inventory at levels consistent with what the market is demanding.

Posted by & filed under Webinar.

April 2, 2014 2:00pm EST

David Osborn and Jessica Batz, BizLibraryWebinar Wednesdays 2013-14
Most organizations approach compliance training as “a cost of doing business” because it’s something they have
to do. There is no choice. Beyond this compliance centered perspective, we believe organizations can look at
the potential positive impact effective training might have on the day-to-day workplace for employees. Will
effective training make your work environment safer? Will employees all feel valued? Can we teach employees
how to look out for each other? The answers to these questions is, “Yes.” In the new session we’ll discuss:

  • Key strategies to get your employees more engaged in compliance training.
  • Tips for writing a business case.
  • 5 steps to select training content.


Posted by & filed under Webinar.

March 26, 2014 2:00pm EST

Barry Elms, Strategic Negotiations InternationalWebinar Wednesdays 2013-14
It has been reported that 90% of unhappy customers do not complain they just don’t come back. During this exciting webinar Barry Elms will demonstrate techniques to maximize customer satisfaction that will keep your customers coming back. Included will be a discussion on the 5 things customers hate most about a sales pitch and how to avoid them.