Service Providers: Don’t Assume You Are Always Tax-Free!

Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.

Ohio Supreme Court Upholds Sales Tax Refund for Computerized Services

The Ohio Board of Tax Appeals (BTA) uses the true object test to distinguish between nontaxable custom software or taxable services.

Texas Rules Loan Document Packages Subject to Sales Tax

The Texas Court of Appeals ruled that a law firm’s purchases of packages containing the legal documents necessary to execute residential mortgage loans should be classified as purchases of data processing services, which is subject to sales tax.

New York Advertising Analysis Service Provider to Collect Sales Tax

A New York company that helps clients measure the effectiveness of advertising efforts is considered an information services provider.

Service Providers: Are you Making This Big Sales Tax Mistake?

If you’re a service provider selling goods along with non-taxable services, you may be making one simple but big mistake that can create a sales tax burden for your business.

Florida Released Publication on P2P Car Sharing Rentals

Effective January 1, 2022, Florida peer-to-peer car-sharing programs are subject to collecting and remitting the applicable taxes.

California Clarifies Sales Tax for Mixed Newspaper Subscriptions

California now requires publishers to determine if their newspaper sales are considered mixed newspaper subscriptions due to its effect on sales tax.

Manitoba RST will no longer apply to Personal Services

Manitoba, Canada has updated their tax rules to exclude personal services from Retail Sales Tax (RST), with the exception of tanning services.

Employment Services No Longer Subject to Ohio’s Sales and Use Tax

Ohio has repealed its tax on employment services which has been taxed under Ohio R.C 5739.01(JJ) effective October 1, 2021.

Pennsylvania Clarifies Taxability of Remote Help Supply Services

The Pennsylvania Department of Revenue has issued a bulletin to inform taxpayers regarding the taxability of remote help supply services.

Ohio Repeals Sales Tax On Employment Services

Ohio Governor DeWine signed H.B. 110 on June 30, 2021, which officially repeals the sales tax that was established by the state of Ohio on employment services.

New York Releases Advisory Opinion on Software and Consulting Services

In an Advisory Opinion dated November 17, 2020, the New York Commissioner clarified their position on the taxability of consulting services that provide access to online customer portals.

Tennessee Governor Signs New Law Providing Sales and Use Tax Exemption to Certain Online Continuing Education Courses

Tennessee’s new law signed by the Governor provides a sales and use tax exemption for online access to qualified continuing education courses.

West Virginia Enacts Repair, Remodeling, and Maintenance of Aircraft Exemption

West Virginia has enacted a consumers sales and service tax exemption for purchases of certain services and tangible personal property sold for the repair, remodeling, and maintenance of aircraft.

Tennessee Enacts Exemption for Certain Film Productions

Tennessee has enacted a sales and use tax exemption for qualified film or television production costs provided the Commissioners of Revenue and Economic and Community Development determine that the exemption is in the best interests of the state (such as jobs created or community impact).

How States Will Use Sales Tax to Recover Lost Revenue from the Pandemic

Learn three sales tax trends states are turning to to expand their tax bases, bring in new taxpayers, and generate more revenue.

Elective Ultrasound Service Found Taxable in California

California determined that the true object of a taxpayer’s prenatal imaging business was the images captured, not the ultrasound service.

Maryland Enacts New Tax on Digital Advertising

The Maryland legislature overrode Governor Larry Hogan’s veto of a new tax on digital advertising (H.B. 732) on February 12, 2021, making Maryland the first state in the country to adopt a tax on digital advertising.

Portable Toilet Rentals Subject to Tax, Not Exempt as a Service in Missouri

Missouri held that the provision of portable toilets and related services were taxable as the rental of tangible personal property, not exempt as waste removal services.

IT Service Agreement Taxable as Service Contract in North Carolina

An IT provider’s service agreements were subject to North Carolina sales and use tax since the agreements met the definition of a taxable service contract.

Order Management Services Taxable as Data Processing in Texas

A taxpayer’s provision of order management services was properly subject to Texas sales and use tax since the services qualified as taxable data processing services

Food Delivery Services Exempt in Mississippi

Mississippi sales tax no longer applies to sales of food through third-party delivery services that allow customers to order food through the delivery service’s app or website.

Retailer’s Sale and Installation of Appliances Not Exempt in Illinois

The Appellate Court of Illinois affirmed a lower court’s finding that a retailer’s sales of appliances were not exempt as installations into real property from ROT despite the retailer’s installation of the appliances.

Safety Manager Services on Construction Sites Taxable in New York

Providing site safety managers, fire safety managers, and emergency action watchmen for work on construction sites is subject to New York sales and use tax.