CCH Learning Center

Description:

In recent years, sales and use taxes have been expanded to tax the service sector of the U.S. economy. When sales and use taxes began, services made up only a small portion of the economy. Over time, however, the manufacturing base in the United States has diminished and the service sector has expanded. To maintain revenue streams from the sales and use tax, the states have expanded the base by including more and more services in the measure of tax. Initially only services related to tangible personal property were taxed; however, over time, the base has been expanded in many states to include other services not necessarily related to the sale of tangible personal property.

This course explains the state sales and use tax treatment of various service transactions. It discusses the issues involved in determining the sales and use taxability of mixed transactions, maintenance contracts, temporary help, and professional services.

Upon completing this course, the student will be able to:

• Explain the elements used to determine the sales and use tax treatment of mixed transactions
• Describe the issues involved in determining the sales and use tax treatment of professional, advertising, architectural, printing, and carrier services
• Indicate the various issues involved in the determination of sales and use taxability of computer consulting and services
• Describe how states treat maintenance contracts for sales and use tax purposes