Ohio Supreme Court Rules Management Charges Included in Purchase Price

Charges for “paper management services” were subject to tax under Ohio law because they were found to be associated with the “complete performance” of a contract. While the management services charges were separately stated on the invoice, the court found that the “overriding purpose” was to obtain property produced by the service. The property was the “consequential element of the transaction”, so the entire price of the transaction was subject to tax. (Ameritech Publishing, Inc. v. Wilkins, Ohio Supreme Court, No. 2005-1862, November 1, 2006)

Posted on November 20, 2006