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"Charging Sales Tax on Services: Rules of the Road"

Governments are struggling to fill post-recession revenue gaps, and are increasing the types of goods and services that are subject to sales tax.

And guess what?  Sales tax is one of the largest sources of state revenue and is crucial to basic government operations.  As more states expand taxability on  services and tangible goods, the potential for sales tax calculation errors and audit risk rises.

These challenges may apply to the following businesses:

• Businesses selling taxable services, such as debt collection, financial services, professional services, and credit reporting services 
• Construction contractors
• Maintenance services

This paper gives some “rules of the road” in the new world of greater sales tax liabilities for companies of all sizes.

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