Utah has enacted legislation creating a sales and use tax exemption for purchases or leases of certain machinery and equipment by an electronic financial payment service. The exemption is effective July 1, 2013. To qualify, the machinery and equipment must…
Rhode Island Amends Direct Mail Sourcing Rule
Rhode Island has amended its sales and use tax regulation covering direct mail sourcing to maintain compliance with the Streamlined Sales Tax Agreement. The regulation has been amended to specify that a sale of advertising and promotional direct mail is…
Services Sold for Resale Not Taxable in New Mexico
Sales of services by a waste management consulting service to a governmental waste authority for resale were determined to be deductible from New Mexico gross receipts for sales and use tax purposes. The sales were tax exempt because the consulting…
Mailing Service and Postage Charges Not Taxable in Missouri
A commercial printer’s separately stated mailing service and separately stated postage charges are not subject to Missouri sales tax. If requested by customers, the printer’s direct mail service can deliver materials via the U.S. Postal Service to home and business…
Drawings Delivered Electronically Not Taxable in New York
A taxpayer\’s sales of drawings delivered electronically as PDF files are not subject to New York sales and use tax.
Staffing Agencies’ Provision of Personnel Taxable in West Virginia
The West Virginia Office of Tax Appeals found that staffing agencies that provided medical professionals were not entitled to a refund of consumers’ sales and service tax because the service provided by a temporary employment agency is taxable under West…
Connecticut Issues Guidance on Taxability of Hazardous Waste Services
Services provided in the voluntary evaluation, prevention, treatment, containment, or removal of hazardous waste or other air, water, and soil contaminants are subject to Connecticut sales and use tax…
Warranty Contracts Purchased After Tangible Personal Property Purchase Exempt in South Carolina
Starting on September 1, 2011, sales of a warranty, service, or maintenance contract for tangible personal property are exempt from South Carolina sales and use tax, with limited exceptions, if purchased after the purchase of the tangible personal property. (S.B.…
SEC Filing Service Subject to Tennessee Sales Tax
The services of a taxpayer that obtains financial information from its customers, converts it into a compliant file then transmits the file electronically to the U.S. Securities and Exchange Commission (SEC) are subject to Tennessee sales and use tax as…
Indiana Issues Ruling Regarding Taxability of Repair Service Contract Fees
The Indiana Department of Revenue has issued a ruling stating that repair service companies must collect and remit sales tax on the monthly or annual fees it charges customers under their real estate improvement repair services contracts for a number of items.
Department Store Operator Not Liable for Use Tax on Catalogs and Other Printed Materials.
A department store operator with stores in Louisiana and other states is not liable for use tax on the printing costs of catalogs and other printed materials that are sent to its stores and customers located in Louisiana.
New York Exempts Litigation Support Services
The New York Department of Taxation and Finance has issued an Advisory Opinion concluding that a company’s litigation support service is not subject to New York sales tax imposed on information services. Although it is considered an information service because…
Indiana Use Tax Due on Waste Hauling Trucks Because Public Transportation Exemption Requirements Not Met
An Indiana corporation engaged in waste hauling was found liable for use tax on the purchase and repair of trucks used to haul waste. The taxpayer argued that these trucks qualified for the public transportation exemption because it contracts with…
CDs Provided with Non-Taxable Missouri Services Exempt
A printing company’s charges for scanning and imaging customer documents onto CDs for distribution to its customers were services not subject to Missouri sales tax. The true object of the transaction was not to obtain the CDs, but to obtain…
Utah Clarifies Taxability of Public Relations, Media, And Web Design Services
A private letter ruling was issued by the Utah State Tax Commission in response to a taxpayer’s questions concerning sales and use tax treatment of various charges associated with public relations, advertising and marketing. Public relations service retainers, including coordinating…
Direct Mail Sellers Informed with Recipient Location Must Collect Utah Tax
Effective July 1, 2010, if a seller of advertising and promotional direct mail receives information indicating the locations of the recipients to which the advertising and promotional direct mail is delivered, the seller must collect and remit sales and use…
Indiana Car Dealerships Sales of Optional Warranty Contract and Purchases of Credit Reports Taxable
The Indiana Department of Revenue found that a dealership\’s sale of optional warranty contracts were subject to tax because the contracts were billed as a single price for the service, labor, and parts provided under the contract.
Caterer’s Rental of Audiovisual Equipment Taxable in New York
The New York Supreme Court, Appellate Division, determined that a catering business should have paid sales tax on its rental of audiovisual equipment. Since the petitioner did not rent the equipment to anyone other than its catering customers, the rerental…
Lighting Design Services Taxable in New York
An advisory opinion determined a taxpayer\’s lighting design services were subject to New York sales tax.
Professional Employer Organization Services Not Taxable in Pennsylvania
A Professional Employer Organization’s (PEO) charges for providing certain human resources-related services (PEO Services) to clients through the placement the clients’ employees on the payroll of the PEO were found not subject to Pennsylvania sales and use tax. Pennsylvania imposes…
Entry Fee to Museum Taxable in Florida
The Florida Department of Revenue determined that payments made by museum patrons to a museum (the taxpayer) for the privilege of entering exhibits are subject to sales and use tax absent any applicable exemptions.
Web-Based Reports Delivered to Customers in New York are Subject to New York Sales Tax
A taxpayer sale of a web-based report that allows retailers, shopping centers, and real estate developers to assess the potential success of specific retail brands for a given location was found subject to New York sales tax. The sale of…
Check Verification Service Not Taxable Information Service in New York
A taxpayer\’s service of providing check verification, under which the taxpayer provides a recommendation to a merchant to either accept or reject a customer\’s check in payment for goods or services, was not subject to New York sales tax as an information service.
Entire Charge Taxable When Printing Charges Taxable in Florida when not Separately-Stated
A taxpayer\’s charges to contributing firms to participate in the publication of financial/legal books were determined to be taxable for sales tax purposes.