A Nebraska sales and use tax regulation regarding labor charges has been amended to clarify that charges for installation and repair labor are taxable when the item being replaced is taxable. The definition of repair labor has also been clarified…
North Carolina: Administrative Decision on Mapping Services.
North Carolina ruled that a taxpayer’s purchase of tangible personal property used to provide mapping services (film, negatives, etc.) by its land surveying company was subject to state use tax. The taxpayer argued that the items purchased were used to…
Ohio: Staffing Services Subject to Tax.
The Ohio Supreme Court ruled that a staffing service which provided technicians to assist in the production of live sports broadcasts was providing a taxable service subject to Ohio sales tax. As broadcasting companies prepared to operate out of town,…
Florida Issues Advisement Concerning Advertising Inserts.
The State of Florida issued Technical Assistance Advisement No. 05A-015, clarifying that advertising supplements inserted into free, circulated advertising publications (\”shoppers\”)are exempt from Florida sales and use tax…
Washington: Tax Bill Includes Many Tax Changes.
Washington Governor Christine Gregoire recently signed legislation which includes a number of tax provisions, including sales and use and business and occupation (B&O) taxes. Some of the areas impacted include extended warranties (become taxable July 1, 2005), self-service laundry facilities…
Washington Issues Notice on Temporary Staffing.
The Washington Department of Revenue has issued a special notice addressing the taxability of temporary staffing firms. The Department of Revenue stated that it was and has always been their position that businesses that provide temporary workers are required to…
Massachusetts Position on Taxability of Direct Mail Promotional Advertising Materials
Following the decision of the Massachusetts Appeals Court case Bloomingdale\’s, Inc. v. Commissioner of Revenue, the Massachusetts Department of Revenue clarified their position on sales and use taxability of direct mail promotional advertising materials.
Massachusetts Appeals Court Finds Advertising Materials to be Exempt Direct Mail Materials
The Massachusetts Appeals Court recently found that a taxpayer\’s purchase of direct mail advertising materials was not subject to sales or use tax.
Utah Enacts Exemption for Mailing Lists and Databases.
Effective July 1, 2005, mailing lists and databases used to send direct mail are exempt from Utah sales and use tax. A mailing list or database is defined in Utah as “containing information that includes one or more names or…
Kentucky Passes Bill Outlining Multiple Sales and Use Tax Changes.
The State of Kentucky has passed H.B. 267, without the signature of the governor.
Tennessee Issues Revenue Review Citing Discovery and Collection of Delinquent Taxes.
The State of Tennessee has recently issued a Revenue Review indicating it is enhancing its processes in assuring tax compliance and will be increasing its efforts to identify and collect delinquent use tax and business tax. The Revenue Review discusses…
Washington makes distinction between maintenance agreements and warranties.
The State of Washington issued an excise tax advisory to provide assistance for taxpayers in clarifying the distinction between maintenance agreements and warranties. The Department provided a description of the maintenance agreement being a contract in which a vendor will…
Kansas Discusses Resale of Installation Services.
The Kansas Department of Revenue stated that the resale of installation services was exempt from tax if the equipment installed is not affixed to real property and the seller had a valid resale certificate.
Kansas Discusses Tax on Shipping Charges.
In a \”Questions and Answers\” release, the Kansas Department of Revenue discussed the allocation of tax on shipping charges.
Wyoming Issues Bulletin Outlining Taxability of Photography.
The State of Wyoming issued a bulletin in regards to the taxability of photography. This bulletin stated that the sales price paid for photographs, photo equipment and supplies, photography and photo developing, and printing are subject to sales tax. The…
South Dakota promotional allowances exempt from tax.
In South Dakota, a store that sells gasoline, grocery items, and cigarettes received promotional allowances from manufacturers, distributors, and wholesalers. These allowances were not subject to tax as long as they were received in conjunction with a contract that required…
Ohio sales and use taxes apply to electronic security systems.
An installer of electronic security systems for commercial and residential customers offered to link the security system to another business, such as an emergency contact business, as part of the installation process. If the security system was triggered, signals would…
South Dakota clarifies taxation of moving and storage services.
The South Dakota Department of Revenue and Regulation stated that moving services are exempt from sales tax as of July 1, 2004, and that packing, unpacking, loading, unloading, and storage are also exempt if performed as part of the transportation…
Florida free, monthly publication subject to use tax.
A free publication, distributed monthly in Florida is subject to use tax on the \”cost price\” of production because the publication is not comprised primarily of advertising.
Texas affirms taxability of out-of-state printing of advertising materials.
In a case issued on July 15, 2004, May Department Stores Co. was found liable for Texas use tax for the store’s use of advertising materials printed outside of the state. On August 26, 2004, a new opinion was substituted…
Massachusetts clarifies taxability of catalogues.
An amendment was made to Massachusetts law to better explain the term “direct and cooperative direct mail promotional advertising materials.” Under the newly clarified law, this term is defined as “individual discount coupons or advertising leaflets incorporating the coupons within…
Makeup artist and hairstylist services used to produce cover art subject to New York City but not state sales tax.
In an Advisory Opinion, the Department of Taxation stated that the services provided by the makeup artists and hairstylists were part of the taxpayer’s creative process in producing cover art for its compact discs, DVDs, and videos, and not subject…
Garbage and solid waste services taxable in South Dakota.
Gross receipts from garbage or solid waste disposal services are subject to the state’s 4% sales tax, but statutorily exempted from municipal sales taxes. Garbage disposal services include collection of recyclables and hazardous wastes, and tipping fees or landfill charges…
Arkansas implements tax on certain services.
As of July 1, 2004 Arkansas is imposing gross receipts tax on the following services: 1) wrecker and towing; 2) collection and disposal of solid wastes; 3) cleaning parking lots and gutters; 4) dry cleaning and laundry services; 5) industrial…