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Sales Tax on Services: Categorizing Income, Bundled and Mixed Sales, Maryland's Proposed Business Services Tax

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, June 27, 2024

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, May 31, 2024

or call 1-800-926-7926

This webinar will discuss the various methods states use to assess sales tax on services. Our knowledgeable SALT attorney will explain how to distinguish items subject to sales tax, how specific states impose sales tax, the current state of sales tax examinations, and changes on the horizon relative to the taxation of service income.

Description

Every state assesses tax on service income. Some states tax services rendered to tangible or real property, some tax recreational services, and some tax business services. Recently, Maryland has proposed to tax additional services, including accounting, auto repair, funeral, and other professional services.

Deciding how to classify services properly is difficult. Distinguishing between tangible and real property services and tangible and intangible property services, as well as calculating taxability of bundled and mixed transactions, is problematic. Every state's guidelines for taxing digital goods and services vary. Still, states are stepping up sales tax audits, and penalties charged for misclassifications and failure to remit these taxes can be severe. SALT practitioners and businesses need to understand how states impose tax on services.

Listen as our multistate tax specialist examines how states tax services and how to determine the taxability of services in specific states.

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Outline

  1. Sales tax on services: introduction
  2. Categories of service income
    1. Intangible property
    2. Tangible property
    3. Real property
  3. Examples
  4. States seeking to increase taxes on services
    1. Maryland
    2. Nebraska
  5. Sales tax on digital goods and services
  6. State audits of sales tax
  7. Changes on the horizon

Benefits

The panel will cover these and other critical issues:

  • Distinguishing tangible and intangible service income
  • Maryland's proposed tax on business service income
  • Sales tax on digital goods and services
  • How specific states assess sales tax on services

Faculty

Dillon, Michael
Michael T. (Mike) Dillon

President
Dillon Tax Consulting

Mr. Dillon is an attorney and founder specializing in multistate sales and use tax matters for multistate and...  |  Read More

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