True Object Test Decision Diagram

Quick assessment tool that will help you determine which of your products and services are taxable…

Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods

Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.

Sales Tax for Services: Side by Side Invoice Comparison

In this mini-training, Diane Yetter compares two differently formatted invoices for the same transaction to demonstrate the importance of invoice presentation for the taxability of the services you’re providing. Wording your invoice in a certain way can increase your taxability.…

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.

Washington Enacts Additional Service and Other Activities B&O Tax Rate to Fund Workforce Education

Washington has created an additional B&O tax rate under the Service and Other Activities classification to fund Workforce Education.

Membership Fees Subject to Tax in Pennsylvania

The Pennsylvania Department of Revenue has issued a letter ruling discussing the taxability of membership fees for a professional association.

Utah Repeals Legislation that Expanded Taxation to Specified Services, Repealed and Created Exemptions

Effective January 29, 2020, Utah enacted legislation that repeals previously enacted legislation, S.B. 2001, that included expansion of taxability to specified services, the elimination of sales tax exemptions, the creation of new sales tax exemptions, and more.

Point-of-Sale Services Subject to Washington Sales and Use Tax

The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.

Washington Enacts B&O Tax Surcharge on Services and Increases B&O Tax Rate on Financial Institutions

Effective January 1, 2020, Washington will impose a B&O tax surcharge on businesses primarily engaged in one or more specified services.

Illinois Issues Guidance on Parking Excise Tax

The Illinois Department of Revenue (DOR) has issued information regarding the state’s Parking Excise Tax, which took effect on January 1, 2020.

Tennessee Makes Changes to Professions Subject to Professional Privilege Tax

Effective June 1, 2020, only the following professions are subject to Tennessee’s professional privilege tax: Agent (Securities) Attorney Broker-Dealer Investment Adviser Lobbyist Osteopathic Physician Physician The following professions previously subject to the professional privilege tax will be exempt beginning on…

Taxpayer’s Services Qualify as Nontaxable Professional Services in South Carolina

Sales of a taxpayer’s services were not subject to South Carolina sales and use tax since the true object of the transaction was the provision of nontaxable professional services.

Maryland Enacts Exemption for Commercial Building Cleaning Services

Effective April 30, 2019, Maryland sales and use tax does not apply to cleaning services for a commercial or industrial building owned by a common ownership community or a retirement community used for specified services.

Kentucky Enacts Exemption for Specified Services if Certain Conditions Are Met

Kentucky has enacted legislation that exempts specified services from taxation if one of the following conditions is met: The services were sold prior to January 1, 2019 and gross receipts from the sales were less than $6000 in calendar year…

Idaho Provides Exemption for Vehicle Accessory Installation Charges

Idaho passed legislation that creates a sales tax exemption for labor costs on vehicle accessory installation.

Hazard Removal Services Subject to New Mexico Gross Receipts Tax Since They Were Performed In-State

Hazard removal services provided by a taxpayer for the DEA were subject to New Mexico gross receipts tax since the services were performed in the state.

Motor Vehicle Maintenance Contracts Sold to Nonresidents Subject to Tax in Virginia

A car vehicle dealer’s sale of extended warranties, service and maintenance contracts and agreements for vehicles purchased in Virginia but licensed and registered in another state are subject to Virginia sales tax.

Iowa Expands Tax Base to Include Additional Specified Services

Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.

Provision of Personnel to Manufacturer Not Taxable as Employment Service in Ohio

A company that provided personnel to a pet food manufacturer was not subject to Ohio sales tax since it did not provide a taxable employment service.

Certain Cleaning Services Exempt from New York Sales Tax

A taxpayer’s carpet cleaning services are exempt from New York sales tax, but its other cleaning services and floor repair services are subject to sales tax.

Photograph Tinting and Coloring Services Subject to North Carolina Sales and Use Tax

Effective September 1, 2018, charges for services to tint or color a consumer\’s tangible or digital photograph are subject to North Carolina sales and use tax as repair, maintenance, and installation services.

Kentucky Expands Sales Tax Base to Include Specified Services

Effective July 1, 2018, Kentucky has expanded its sales tax base to subject specified services to sales tax.

In-State Repair Services for Nonresidents are Taxable in Washington

The Washington Department of Revenue has issued guidance regarding the taxability of repair services for nonresidents of Washington. Tangible personal property repair services performed in Washington for customers located outside of Washington are subject to Washington business and occupation (B&O)…

Non-Member Fees for Club Services Exempt in New York

New York has issued an advisory opinion concluding that fees paid by non-members of a social club for services provided by the club are not subject to sales tax.