Bill in Utah going through that would tax services (like surveying).
For those that work in like taxed areas, how much time does it take to comply?
One issue is that Utah has up to 300 different tax rates in various jurisdictions. So someone that gets around would need to look up the tax rate almost for every invoice.
I'm not as opposed to the tax as much as having to be the agent that collects it for the state. Just one more thing taking my time, more regulations to deal with. Should the client be billed for the time to collect the tax and deposit it with the state?
Here is one take on the subject:
They imposed a professional services tax in Fl about 20 years ago. This included Doctors and Lawyers (the cheapest people on earth besides used car salesmen.)
Everyone threw a sh*t fit and the tax was abolished about 6 month later. It wasn't a paperwork nightmare, just some regulations but a pain nonetheless. 😎
LRDay stated the problem - if you collect both state and local taxes, you have to know and comply with the regulations for every tax district you do work in. This becomes a compliance nightmare and the only person happy about it will be your accountant because you'll be paying him a lot more money.
In Louisiana there's a state tax, every parish has its own tax, and cities like Houma also have their own tax.
I didn't read the proposed legislation; if they treated it as a separate tax rather than lumping it in with sales tax then they could only collect it at the state level and eliminate most of the compliance nightmare. But there's no way the local jurisdictions would let that fly.
Been collecting sales tax for boundary survey in Texas since 1992. Present rate at my location is 6.5%. In town it is close to 9%. There is a state web page that will give sales tax rate by zip code.