Residential/commercial interior designers that provide purchasing services to procure materials, furniture, accessories and art may be subject to transaction privilege tax/licensing under the retail classification and use tax classification. See Selling a Product (includes service/repair businesses that provide parts/materials).
Interior projects that include new construction, renovation, historic renovation and model homes may be subject to transaction privilege tax/licensing under the contracting classification. Under the tax code, a prime contractor is a person who performs, coordinates or supervises construction work, including contracting with any subcontractors. A prime contractor who only furnishes labor in the performance of contracting work is subject to the tax as well as one who furnishes both labor and materials. In addition, if an interior designer is involved with changes to real property, a contractor's license may be needed. See Construction/Construction-Related Activity - modifying real property.
See also Local Compliance section below.