Graphic artists and computer programmers who work to merge tape and film to digital post production and mastering as a part of finishing the master in digital form do not provide a taxable service. Graphic artists may be presented with…
Rhode Island Photography Services Addressed.
The taxability of photographer fees depends on the “real-object test.” This test determines the true object of a transaction. In the case of Bristol Workshops in Photography vs. Clark, it was found by the court that photographer’s fees were subject…
New York subscription fees.
Subscription fees, including associated marketing fees, additional employee surcharges and annual practitioner fees are subject to sales and use tax. This is pursuant to Secs. 1105(c) (1) and 1105(c) (9) which require that information be delivered by “telegraphy or telephone…
New York art installment taxable.
Sales tax is imposed on the entire contract price of art purchased at the time of the first installment payment. Regardless of the seller’s agreement to pay for the art in installments, the seller is liable for the sales tax…
Promotional material in Washington subject to use tax.
The Department of Revenue in Washington has extended the taxability for those who distribute articles of tangible personal property promoting the sale of products or services. These items continue to be now subject to use tax on the value of…
New Jersey businesses allowed to advertise taxes paid.
The New Jersey Division of Taxation has recently implemented legislation allowing businesses to advertise a vendor’s payment of New Jersey sales tax for the customer in particular transactions. The advertisement must indicate that the vendor paid the tax for the…
Virginia software training taxable.
Any computer software training services which are included in the sale of software are subject to Virginia sales tax. The reason for the taxability is because the service is bundled with the sale of tangible personal property, thus making everything…
Kansas exhaust cleaning service taxable.
In Kansas, the cleaning of kitchen exhaust systems is taxable because there was more involved than a simple cleaning or using a janitorial service.
Washington B&O taxes.
Legislation has been enacted exempting certain remote sellers from Washington’s Business and Occupation tax. These sellers, who have limited connections to the state, are not required to collect tax if their activities in the state are conducted electronically via a…
South Dakota sign and advertising business exemptions.
In South Dakota, legislators have exempted tangible personal property used by sign and advertising businesses if the tangible personal property becomes an integral part of the final product and the product is installed somewhere outside of the state by the…
New York videotape catalogs taxable.
In New York, videotape catalogs of television commercials with advertising messages attached are subject to the New York sales and use tax, at both the state and local levels. These catalogs are considered purchases of tangible personal property when sent…
New York cleaning services during certain construction are exempt.
An advisory opinion released by the Commissioner of Taxation and Finance states that while residential buildings are being constructed, any cleaning services used during this period are to be considered capital improvements, and thus exempt from tax. The advisory opinion…
Florida dispatch services taxable.
Dispatch charges are considered communication services if the service has one user pushing a button to be immediately connected with a predetermined destination or talk group.
Connecticut now imposes a 6% sales and use tax on storage space effective July 1, 2002.
To qualify for this taxes, the storage space must be rented to store personal property. Rentals of entire buildings like warehouses are not affected by this notice.
California sales and use tax amendment affects publishers.
A state regulation has recently been amended for clarification purposes regarding publishing. Regulation 1543 states that any transfer of copy or a manuscript, cartoon and/or comic strip from an author to a publisher explicitly for publication purposes is a nontaxable…
Rhode Island LLC’s may now render professional services.
Starting July 28, 2002 professional limited liability companies may operate in the state of Rhode Island. Prior to this amendment, LLC’s were strictly prohibited from performing or rendering any professional services under the Rhode Island Limited Liability Company Act. (Ch.…
Washington service taxability.
When a service is performed outside the state on tangible personal property used in Washington the service will become subject to use tax as of June 1, 2002. Such services include installing, repairing, cleaning, altering, imprinting, or improving tangible personal…
Virginia management fees nontaxable.
A management contract requiring fees to be paid between a professional corporation of physicians and a partnership that handled all of the administrative operations of the clinic were not subject to Virginia sales and use tax even though some tangible…
Minnesota Scanning Services Can Be Taxable
In the state of Minnesota, scanning documents and then transferring those documents via tangible personal property is subject to sales tax.
Nevada amends the taxability for freight, transportation, and delivery.
Charges for freight, transportation, and / or delivery are taxable if they are not separately stated from the sell of tangible personal property. However, these same charges can be exempt. To be exempt they must be separately stated and the…
Alabama personal television services exempt from tax.
In Alabama, any service which assists people with recording programs for later use, pauses or records live broadcasts, programs personal settings for viewing, and/or allows reception of special content through a personal television is exempt from state sales and use…
Nebraska Rate and Other Taxability Changes
Beginning October 1, 2002, Nebraska will have several alterations to their sales and use tax system. The sales tax rate was originally going to be 5.5%, up from 5%, from October 1, 2002 through September 30, 2003, but the rate…
Valet Parking in District of Columbia exempt.
The D.C. Code has been amended to specifically exempt valet parking in the District of Columbia. Sales tax on valet parking has never been applied before but legislature has deemed it necessary to have a written ruling which addresses the…
Virginia web site design services considered media advertising.
An advertising agency in the state of Virginia recently requested a letter ruling regarding an assessment made by a Department of Taxation audit. Tax was assessed on items originally purchased without tax and then used by the advertising agency to…