Davie, a building contractor in Florida, enters into a lump-sum contract with a Cydney for the construction of her new home. He will be required to pay sales or use taxes when he purchases supplies and material because the construction contract is a lump-sum contract. If Davie had used a time and materials contract, which required him to separately state and itemize the materials, supplies and labor, then Florida would have treated him as reseller. Resellers are exempt from sales tax on their purchases, so he would not pay sales tax when he bought the materials and supplies. Instead, Davie would be required to charge Cydney sales tax on the materials and supplies.