State revenue coffers are aggressively reaching out for new sources. Traditionally, professional services have been spared the spotlight. This is because attorneys (who just happen to offer professional services) make up the overwhelming majority of state legislators in every state.
However, very recently, states have been looking to assess sales taxes on various professional services in various ways. In some cases, the framers of legislation do this while exempting attorneys so they will not face defeat in state congress votes.
Looks like 3 states, Hawaii, SDakota, NMexico have already passed legislation taxing CPA services (including tax prep services) under sales tax laws. Other states have proposed and failed. Most recently Minnesota Mark Dayton has proposed taxing services (including accounting services) but has not yet faced legislative action.
This is from a CPA blog...
However, very recently, states have been looking to assess sales taxes on various professional services in various ways. In some cases, the framers of legislation do this while exempting attorneys so they will not face defeat in state congress votes.
Looks like 3 states, Hawaii, SDakota, NMexico have already passed legislation taxing CPA services (including tax prep services) under sales tax laws. Other states have proposed and failed. Most recently Minnesota Mark Dayton has proposed taxing services (including accounting services) but has not yet faced legislative action.
This is from a CPA blog...
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