Because a taxpayer was able to predict when elevator rope replacements and adjustments would be necessary the Department agreed that these services were scheduled and performed as periodic maintenance services. The services were therefore considered exempt from sales and use…
Florida exempts housekeeping management services.
Taxpayer requested guidance from the Florida Department of Revenue regarding the tax status of the monthly service fees charged to hospitals for housekeeping management and housekeeping labor.
Texas taxes residential termite inspection services.
Insurance inspections performed on residential real estate to evaluate the risks to property are taxable for buyers, sellers, or others. Pest control services are taxable as a real property service. (Letter, Texas Comptroller of Public Accounts, No 200401357L, January 28,…
New York exempts the installation of home alarm systems.
Sales of alarm systems on an uninstalled basis are typically sales of tangible personal property that are subject to sales tax. Residential burglar and fire alarm systems that are installed to real property may qualify as a capital improvement that…
Texas taxes pre-employment screening services.
The sale of information services is subject to Texas sales tax. The performance of personal reference checks and gathering background screening information from primarily public information sources qualifies as a taxable information service. (Position Letter, Texas Comptroller of Public Accounts,…
North Carolina includes creative design charges as taxable.
A taxpayer sold trade booths, displays, and printed material and also performed creative services for clients. The department ruled that taxpayer’s charges for creative services and design labor constituted part of the sales price of the tangible personal property sold,…
Utah limits the taxation of cable and satellite TV services.
Formerly, cable and satellite television services were subject to both state and local sales and use taxes. The Utah Legislature recently announced the Multi-Channel Video or Audio Service Tax Act, which will be effective July 1, 2004. The new law…
Indiana taxes delivery charges.
To comply with the Streamlined Sales and Use Tax Agreement, Indiana now includes delivery charges in gross retail income and taxes them regardless of shipping terms or invoice documentation.
Kansas exempts some of the fees associated with monogramming services.
The service fee charged for the unique design of a logo or monogram design is considered exempt.
Ohio taxes snow removal services that are performed by mechanical means.
Effective August 1, 2003, taxpayer guidance was revised to define “snow removal service” as the removal of snow by any mechanized means. The application of salt made in conjunction with mechanized snow removal is similarly taxable as snow removal. If…
West Virginia marketing incentive payment plan taxable.
In West Virginia, marketing incentive payment plans for tobacco products were subject to use tax because of the taxable services retailers were required to provide. Activities required of retailers included providing storage stocking and rotating products, accounting, executing promotions, assembling,…
Texas charges for broadcast commercials.
In Texas, commercials that provide information to customers located in the parking lots of malls and stores are exempt from tax when they are billed in connection with the provision of FCC approved AM radio broadcasts. (Comptroller of Public Accounts,…
Texas homebuilder tax refund.
Landscaping services purchased for model homes by a homebuilder in Texas partially qualified for a sales tax refund. This refund was applicable only to services rendered to make the model homes ready for residence and did not include services for…
New York airline services exempt.
The separately stated charges for certain services provided to commercial airlines in New York were not subject to sales and use tax. These services, which included emptying the aircraft’s lavatories, de-icing the aircraft, and cleaning the aircraft, were exempt because…
Florida advertising publication exempt.
In Florida, a publication which is primarily advertising, distributed on a monthly basis through the mail free of charge, is exempt from sales and use tax. (Florida Department of Revenue, FL-TAA 03A-055, November 14, 2003)
Wisconsin treatment of landscaping.
The Wisconsin Department of Revenue has updated its Publication 210 which clarifies the treatment of landscaping services for sales and use tax purposes. You can find a copy of the Publication at http://www.dor.state.wi.us/pubs/pb210.pdf. Some of items covered are maintenance, exemptions,…
Texas post-fire cleanup services for residences taxable.
Post-fire cleanup services for residences, which includes any boarding up or the application of tarps is all considered to be part of a taxable real property service. The cleanup of a residence after a fire, including hauling away the damaged…
New York rock salt and rock salt spreading service taxable.
A New York company which provides rock salt spreading and snow removal services petitioned the Department of Taxation and Finance to make a determination of their belief that the spreading of rock salt without “the provision of snow removal services”…
New Jersey food and cleaning services.
Although a company acted as an agent for two hospitals, for the purchase of cleaning supplies and paper goods, it did not qualify for a derivative exemption because the relationships it had with the hospitals were not master-servant in nature.…
Nebraska pest control services taxable.
In Nebraska, clarification is included in a new regulation. Any materials, equipment, and/or supplies used to supply pest control services are taxable. This includes contracted services as well. Pest control services are defined as those services intended to inspect for,…
Minnesota Massage Therapy Taxable
In Minnesota, a massage therapist that performs services that are not for the purpose of treatment of an illness, injury, or disease is subject to sales tax but is not liable for MinnesotaCare tax.
Indiana installation services subject to tax.
An Indiana court ruled that satellite dish installation services were subject to sales tax because they were combined with the sale of a satellite dish and not separately stated.
Massachusetts retrieval of health data exempt
Fees charged by a company for retrieval of health and medical records for its customers are not subject to sales and use taxes.
Iowa storm water drainage services taxable.
An Iowa Appellate Court affirms the decision that fees charged for storm water drainage are taxable to nonresidential commercial operations because rainwater collection is a taxable sewage service.