Is Taxing Services Too Taxing? A Primer on Complexity Created by States' Efforts to Expand Their Sales Tax Bases

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

As states continue to struggle with severe budget shortfalls, more and more states are turning to services as a potential source of revenue. But sales and use taxation of services presents complexities not found in the taxation of tangible personal property. In this article, authors Jordan Goodman, of Horwood, Marcus & Berk Chartered, and Carolynn S. Iafrate, of Industry Sales Tax Solutions, discuss the complications that have arisen in taxation of services and in taxpayers' attempts to apportion their sales and use tax base.

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