A Missouri fitness center was liable for sales tax on its personal trainer fees because the fitness center was considered a place of recreation. The Missouri Hearing Commission rejected the taxpayer’s argument that the personal trainer fees were rent and…
Direct Mail Exception Offered in Kansas
Effective July 1, 2007, charges for delivery of direct mail are not subject to Kansas sales or compensating use tax when the delivery charge is separately-stated on the invoice. “Direct mail” means printed material delivered or distributed by United States…
Texas Clarifies Tax Treatment of Gratuity Charges
The Texas Comptroller of Public Accounts has amended the State’s regulation on the taxation of gratuities. Reasonable mandatory gratuities are not subject to tax as long as they are separated from the price of the meal, identified as a tip…
Internet Advertising Fees Not Taxable in Missouri
Monthly fees paid for advertising services are not subject to Missouri sales or use tax. While the state imposes tax on the sale, storage, use or consumption of any article of tangible personal property and certain enumerated services, sales of…
Michigan Use Tax on Select Services Repealed
Governor Jennifer Granholm signed HB 5408 on December 1, 2007. This law creates a business tax surcharge that replaces the service tax originally set under HB 5198. The law to repeal the use tax on select services was signed just…
Michigan Expands Tax To Include Specific Services
Michigan Expands Tax To Include Specific Services. Effective December 1, 2007, certain specified services will be taxable (6%) in a manner similar to tangible personal property. For a complete list of impacted services, please refer to the law referenced below.…
Distinction between Optional and Mandatory Tips Reflected in California
A recent amendment classifies and distinguishes between optional and mandatory tips.
Photography Services in Missouri Not Subject to Tax
Hourly and daily rates for wedding or commercial photography are not subject to sales tax if they are separately-stated from finished photos. Additionally, the portrait sitting fee, photographers’ consultative fee and photographic services up to the point of previews are…
Oklahoma Excludes Electronics Repair Businesses From Tax
All businesses primarily engaged in the repairing, refitting, or refurbishing of consumer electronic goods are exempt of sales or use tax on purchases of tangible personal property or services. Consumer electronic goods include cell phones, MP3 players, personal computers, compact…
Professional Firms Taxed on Computer Purchases in Iowa
The state recently provided guidance with respect to computer purchases by professional companies. In a policy letter issued by the Iowa Department of Revenue, the state indicated that purchases of computers by commercial enterprises for processing or data storage are…
Employment Agency Guidance Provided in Connecticut
A policy statement set forth by the Connecticut Department of Revenue provides guidelines for imposing sales and use taxes on employment agency services as well as agencies that provide personnel services.
Texas Taxability for Motor Vehicle Repair Services
The Texas Comptroller of Public Accounts explains the sales tax treatment of repair services performed on motor vehicle component parts. When a repair person repairs or rebuilds component parts that a customer places in inventory or installs on a vehicle…
Arkansas Amended Statute Provides Resale Exemption for Services
On March 19, 2007, Arkansas Governor, Mike Beebe, signed H.B. 1622, which amends and provides that a person performing taxable labor to for another person who holds a retailer’s permit is not required to collect and remit Arkansas sales tax…
Illinois Service Club did not Qualify as Charitable Organization
A nonprofit corporation in Illinois did not qualify for exemption from sales and use tax as a charitable organization because its primary mission was to promote the social and professional growth of its members.
Purchase of Ad Circulars Taxable in North Carolina
A North Carolina tax hearing found that circulars distributed by a taxpayer were subject to sales and use tax. The taxpayer argued that the circulars did not constitute tangible personal property because they were distributed free to the public qualifying…
Certified Electrical Inspector Services Taxable in West Virginia
A taxpayer recently petitioned that the services provided as a certified electrical inspector should be considered \”professional services\” and, therefore, exempt from West Virginia consumers\’ sales and service tax.
Texas Internet Job Web Site Services Deemed Taxable
A taxpayer that provided an Internet employment website on which employers could post a company profile and job openings was deemed to be providing taxable data processing services. A Texas Decision Hearing provided that the services were taxable when it…
South Dakota Taxability of Blueprint Purchases by Architects for Resale
A South Dakota Department of Revenue and Regulation publication discusses the sales and use tax liability of an architect’s purchases of blueprints for resale to the owner of the project. There are no South Dakota provisions allowing a service provider…
Fashion Stylist Services Nontaxable in New York if Separately-Stated
Under section 1105(c) of the New York Tax Law, charges for a fashion stylist\’s services are not subject to sales tax because they are not considered to be among the state\’s enumerated taxable services.
Florida Exempts Pilates Instruction as a Professional Service
The State of Florida has exempted flat fees charged for Pilates instruction, whether for a specific number of classes or for an unlimited number of classes.
Taxability of New York Graphic Design and Design Services
A taxpayer’s petition to the New York Commissioner of Taxation and Finance raised the issue of whether or not its charges for graphic design and design services are subject to sales tax. It was determined that for final graphic designs…
Auditor’s Estimate Valid on Unreviewed Government Service Contract
During a taxability examination, a federal government contractor did not allow a Virginia Department of Taxation auditor, who had appropriate government clearance, to review a contract to determine whether it was for the sale of tangible personal property or for…
Utah Exempts Common Carrier Transportation
Effective July, 2006, Utah exempts from sales and use tax any amounts paid for transportation by a common carrier. Common carrier is defined as “a person engaged in the business of transporting passengers, freight, merchandise, or other property for hire…
DJ Activities Eligible for Chicago Exemption
The City of Chicago imposes an amusement tax of 8% on the admissions fees of all patrons of the amusement.