The South Carolina Department of Revenue issued a revenue ruling to advise taxpayers on the treatment of warranties, maintenance contracts and similar service contracts. The state advised that tax was due on the sale or renewal of service contracts whether…
Ohio Amends Definition of Employment Service
The State of Ohio has adopted language amending the definition of “employment service” in the state tax statutes. The amended definition now includes personnel who receive their compensation from a third party who supplies the workers to second party who…
Massachusetts Rules Service Charge Was Sale at Retail
Massachusetts found that a charge which provided both a service and a transfer of tangible personal property was subject to state sales tax.
Arizona Discusses Exemptions of Architectural and Engineering Services
Under the prime contracting classification for direct costs of architectural and engineering services, a privilege tax exemption applies to direct labor costs, direct material costs and third party subcontracted costs. To qualify for the exemption, the service must be performed…
Printing for Motion Picture Production Exempt in Arizona
Under the Arizona job printing classification, sales of printing, engraving, embossing, or copying to a qualified motion picture production company for use in motion picture production are exempt. To be eligible for this deduction, at the time of sale, the…
New Jersey Taxes Information Services
Effective October 1, 2006, information services will be subject to sales and use tax in New Jersey. An information service is defined as service which provides information of any kind other than “personal or individual information which is not incorporated…
New York Discusses Shipping Charges for Givaways
A company that sent a free sample of its cosmetic product to consumers was not required to collect tax on the shipping and handling fee charged to the customer. Provided the shipping and handling charge reflects the actual amount paid…
User-Specific Web Site Data Not Subject to Tax in New York
A company that provided website visitor information specific to its customers was not required to charge tax on this service. In this situation, the company provided information about the behavior of visitors to the customer’s website. The information, collected and…
Texas Letter Clarifies Taxability of Bookkeeping Services
The Texas Comptroller clarified the tax treatment of bookkeeping services. In the clarification, the Comptroller stated that 80% of the charge for data processing services was taxable. However, the law specifically excludes services where the computer is used “to facilitate…
Ohio Supreme Court Rules Management Charges Included in Purchase Price
Charges for “paper management services” were subject to tax under Ohio law because they were found to be associated with the “complete performance” of a contract. While the management services charges were separately stated on the invoice, the court found…
Separately-Stated Photography Services Taxable In Arizona
The Director’s review upheld an earlier decision that separately-stated photographer’s fees were subject to the state’s transaction privilege tax. Specifically, the photographer did not qualify for a “service in addition to a retail sale” exemption as the services provided by…
Washington Printing Industry Rule Amended
The Washington Department of Revenue has adopted permanent amendments to a rule pertaining to the printing industry, including explanations of the business and occupation (B&O) and sales and use tax reporting responsibilities. The rule is revised to reflect Ch. 514,…
Consulting Services Exempt in Florida
Services, including consulting services, are generally exempt from sales tax provided they are not made available in conjunction with the sale of tangible personal property.
Certain Printed Materials Exempt In Texas
In a recent hearing, a computer hardware/software manufacturer was exempt from Texas sales and use tax on certain printed material it purchased from vendors and included with its products to customers.
Out-of-State Printers Exempt in Kentucky
An out-of-state commercial printer or mailer engaged in business in Kentucky is not required to collect use tax on sales of certain printing or direct mail advertising materials. To qualify, the advertising materials must be printed out-of-state and delivered out-of-state…
Catalogs Stored Or Delivered In Texas Taxable
In a May 2006 Comptroller of Public Accounts Letter, the State explained that any taxpayer which pays an out-of-state company to produce and mail catalogs is liable for Texas use tax on any catalogs shipped directly to Texas residents. Furthermore,…
Temporary Employees Exempt in Missouri
Pursuant to Missouri Statutes, labor is not subject to Missouri sales or use tax without the purchase of tangible personal property resulting from that labor. As a result, fees paid to an employment agency for temporary personnel used for packaging…
Nebraska’s Tax Relief Legislation on Home-Repair Labor
On April 6, 2006, Governor Dave Heineman signed LB 968 into law. A portion of the new bill repeals the sales tax on home-repair labor, rescinding the residential tax levied on homeowners. Exempted labor may relate to: the original construction…
Oklahoma Exempts Certain Advertising From Sales Tax
On June 6, 2005, the State of Oklahoma enacted House Bill 1547. The law exempts the sale of advertising space in newspapers, periodicals, and on indoor or outdoor billboards or posters. The exemption also applies to advertising in sports and…
North Carolina Exempts Services Related to Funerals
Effective January 1, 2006, North Carolina will not tax funeral services. Examples of exempt services include those provided by ambulance, morticians, undertakers, beauticians, and barbers. Tangible personal property related to funerals, such as coffins, caskets, vaults, and memorial stones, however,…
New York Taxes Sales of Engineering and Architectural Bid Sets
The New York State Department of Taxation and Finance ruled that an engineering and architectural firm must pay sales tax on all purchases of tangible personal property and taxable services incorporated into its service. The firm’s sale of final work…
Louisiana Does Not Tax Electronic Discovery Service
In a recent Private Letter Ruling, the State of Louisiana held that electronic discovery services, consisting of evidence collection, data preparation, data review, and data production, were not subject to sales and use tax because they fell outside the scope…
Washington Clarifies Reporting Requirements of Delivery Costs for Direct Mail.
A rule regarding Washington use tax on promotional material is modified to provide information about the responsibilities of both buyers and sellers that are directly related to delivery charges associated with direct mail. “Direct mail” includes tangible personal property supplied…
Washington Amends Direct Mail Delivery Charges.
Effective May 17, 2005, Washington retail sales and use and business and occupation (B&O) tax rules regarding delivery charges for direct mail have been modified to reflect recent statutory changes. A B&O tax deduction and a sales and use tax…