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sales/use taxes


The New York Times has an article about how states are looking to collect revenue from sales taxes based on services rendered to its citizens.

Some states already tax a number of services (like haircuts, utilities, repair services, etc.), but very few tax professional services like medical or legal services.

Some states prefer to collect sales tax as a substitute for a state income tax. If states are going to impose a sales/use tax on most goods and services, then they should not also collect income taxes.

A sales tax on medical and legal services would not be paid by the doctor or the lawyer – it would be a surcharge collected from the individual patient or client and paid to the state.

At what point would the sales/use tax obligation on services cease? If pro bono services were rendered by a medical or legal professional, would the client then be responsible to pay an income or sales/use tax based on the value/benefit of the services received, even if they did not have to pay for the actual services rendered?



posted on Sunday, March 28th, 2010 at 4:07 pm and is filed under 2010, 2010-march, taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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