Make no simple assumptions about taxation of services

Professionals and businesses should make no simple assumptions about the taxability of services, according to a new white paper from CCH.
In the white paper, The Taxability of Services, CCH points out that while some states generally exempt services from sales taxes and other states generally tax them, exceptions abound in both cases.

The white paper examines five main service categories in detail:

• Standalone services
• Tangible personal property services
• Real property services
• Bundled services
• Digital and information services

OSCPA has fought and won the battle to tax accounting and consulting services many times. As issues like school and Medicaid funding continue to take up an increasing amount of the state’s budget, many states are considering the feasibility of taxing professional services, including accounting and consulting services. The Ohio Society will continue to bring the message to the legislative and executive branches that an expansion of the state’s sales tax base would be bad for Ohio.

More tax news