Services - Are They Taxable?

Michael J. Fleming is the founder and president of Sales Tax and More, a full service consulting and solutions firm with a passion for state tax. He is one of the country's leading authorities on sales tax issues such as consulting and research, registrations, returns, nexus, dropshipping, e-commerce, and service providers. Michael is a renowned writer and speaker, and he regularly presents on webinars. He is also the host of the Sales Tax and More podcast, where he shares his wisdom and learnings to his audience in order to help them navigate the tricky world of taxes. In this episode… The answer is yes: Many services are taxable, and each year more states increase their lists of taxable services. In most cases, whether or not a service is taxable depends on the state where the service is provided, as well as what type of service it is. However, it could also depend on the facts and circumstances surrounding the transaction. So why is there so much confusion about the taxation of services? According to Michael J. Fleming, services have historically been non-taxable, so some businesses still assume that their services are not subject to tax. Unfortunately, due to changes in the economy, states have decided to start taxing services in order to boost their overall revenue. In this week's episode of the Sales Tax and More podcast, Michael J. Fleming is interviewed by his co-host Ellie Moffat about the taxation of services in various states. Michael highlights the different services that are taxable, the states that tend to be more aggressive than others, and the reason why many people get confused by their taxation. Stay tuned.