A taxpayer in the business of furnishing temporary information technology workers to clients was not liable for Tennessee sales and use tax. Since the contract employees worked under the direction, supervision, and complete control of the client, the “in-house software…
Virginia Tax Commissioner Rules on Taxability of E-Learning Services
Virginia Tax Commissioner ruled that a taxpayer’s sales of licenses to access interactive web-based training and educational services (e-Learning) qualified for an exemption from Virginia’s retail sales and use tax. This exemption only applies if there is no provision of…
Missouri Taxes Personal Training and Physical Fitness Fees
Missouri has issued a letter ruling concerning the taxability of certain services at a health club. Personal training and group fitness classes are subject to sales tax because a health club is a place of amusement. In Wilson’s Total Fitness…
Maine Publication for Photographers and Photofinishers Revised
While photographers and photofinishers are subject to the sales and use tax when producing and selling tangible personal property, revisions made by the Maine Revenue Services indicate that they are subject to a service provider tax that applies to any…
Security Services are Taxable in Texas
A taxpayers” claim for a refund of tax assessed on security services performed by off-duty peace officers was denied. A licensed security services contractor charged the taxpayer a separately-stated per hour fee for each officer, scheduling, and payroll. The taxpayer…
Tickets Provided to Sponsors are Taxable in Alabama
In a recent hearing, Alabama court determined that tickets provided to sponsors in conjunction with sponsorships were subject to the gross receipts sales tax. The taxpayer conducted a wine tour that was open to the public. In addition to selling…
Parts Used to Repair Real Property Did Not Qualify for New Jersey Resale Exemption
A New Jersey Tax Court has agreed with the Division of Taxation’s position that a company who performed maintenance and repair work on commercial heating and cooling systems acted as a contractor performing services on real property, and is therefore…
Ohio Manufacturer Not Liable for Use-Tax Assessed on Goodwill Repairs
The Ohio Supreme Court has reversed the Board of Tax Appeals’ decision that a car manufacturer was the consumer of taxable repair parts and services provided free-of-charge to customers under its “goodwill-repair” program. The Ohio Supreme Court determined that the…
New York Issues Instructions for Printers and Mailers
New York has issued collecting and reporting instructions for printers, mailers, and printer-mailers on sales made on and after September 1, 2008. A printer delivering printed matter to a mailer is required to collect the sales tax on the entire…
New York Determines that Parts and Equipment Used to Receive Satellite TV Programming is Taxable
A provider of satellite television programming was assessed tax on purchases of the following parts and equipment supplied to its’ customers: (i) a satellite dish, (ii) a low-noise block feedhorn (LNBF), (iii) a switch, (iv) a receiver (a.k.a. set-top box),…
New York Extends Expiration Date of New York City Service Tax
New York Legislation has postponed the expiration of sales and use tax on certain services in the city of New York. The tax, which was set to expire on December 31, 2008, will now be in effect until December 31,…
New York Taxability of Millwork Shop Drawing Services
Charges for millwork shop drawing services relating to interior millwork are considered interior decorating and design services, which are subject to New York State and local sales and use tax. Charges for interior decorating and design services that are delivered…
Subsistence, Per Diem, Lodging Reimbursement, and Mileage Charges are Exempt in Wyoming
Travel expense reimbursements billed as subsistence, per diem, and accommodation reimbursements are not subject to sales tax since this re-billing occurs after the actual taxing event. These travel expenses are taxable when incurred by the company from the vendor; e.g.…
Utah Enacts Tax Legislation for Insurance Industry
Effective May 5, 2008, Utah legislation has enacted the Professional Employer Organization Licensing Act under the Utah Insurance Code. As part of the Act, a covered employee whose service is subject to a sales or use tax is considered the…
Ohio Point “”of-Sale Coupon Service Exempt from Sales Tax
The service of providing point-of-sale coupons to customers at retail stores throughout Ohio is exempt from sales taxes on the basis that it is a marketing service provider. The coupon service provider does, however, have to pay taxes on the…
Billing and Collection Services Not Taxed in Ohio
The Tax Commissioner of Ohio has issued an opinion stating that billing and collection services performed by local exchange carriers and invoiced to a telecommunication provider are nontaxable personal services, and therefore not subject to sales tax. (Opinion of the…
Maine Revises Rules Applying to Vehicle Repair Shops
Beginning September 20, 2007, the sale of extended service contracts on automobiles is a taxable sale. Parts associated with the fulfillment of repairs under the contract will not be taxable to the servicer or the customer as the parts are…
North Carolina Cost-Per-Copy Optional Maintenance Fees Exempt
A North Carolina taxpayer who entered into optional maintenance agreements with customers on a cost-per-copy basis was not liable for sales tax. Since the cost-per-copy optional maintenance fee charged by the customer did not represent the sale of tangible personal…
Missouri Rules on Vehicle Service Contracts
The Missouri Department of Revenue has issued a Letter Ruling addressing the taxability of automobile service contracts. The state found that a business that leased vehicles that included the cost of the service contract in their leases was subject to…
Parts Used in Warranty Fulfillment Taxable as Retail Sale in Kentucky
A Kentucky court found that parts and supplies used in the fulfillment of maintenance contract obligations were subject to sales and use tax as a retail sale. The court stated that since no tangible personal property is transferred at the…
Tennessee Exemption for State and Federally Chartered Credit Unions
A notice has been released by the Tennessee Department of Revenue to provide clarification regarding the sales and use tax exemption applicable to purchases made by state and federally-chartered credit unions. Purchases of tangible personal property and services by federally-organized…
Texas Letter Addresses Landman Services
In a letter release, the Texas Comptroller of Public Accounts addressed the taxability of landman services. Landman services are considered to be “services necessary to negotiate or secure land and or mineral rights for acquisition or trade.” This includes acquiring…
Inserts Sold as Components of Newspapers Not Taxable in Florida
According to Florida Statute Section 212.08(7)(W), inserts sold as a component of newspapers are not subject to sales tax. To satisfy the requirements, the inserts must be printed by the publisher as part of the newspaper or delivered directly to…
Virginia Commissioner Finds Tax Applied to Printed Materials
In response to a taxpayer inquiry, the Virginia Tax Commissioner ruled on the taxability of goods/services purchased by an advertising agency. The Commissioner found that the agency’s purchases of photographic tangible property and related services were fully subject to tax.…