Name of State or Business
Name of person completing
survey
Telephone number of person
completing survey
E-mail address of person
completing survey
Instructions - In each of the following
scenarios assume that the service is subject to sales tax in all taxing
jurisdictions involved. For 1 through 3, please indicate whether you agree or
disagree with the suggested application of the sourcing rules. If you disagree,
please indicate how you believe the sourcing rules apply to the scenario and
why. For scenarios 4 through 6, please indicate which sourcing option applies.
1.
Services
to real property (i.e., building cleaning, pest control, lawn care, security)
are sourced to the property location where the service is performed.
Agree Disagree If disagree, please explain
2. Personal services (i.e., tanning, barber service, massage service, veterinary service) are sourced to the location where the service is performed.
Agree Disagree If disagree, please explain
3.
Admission
tickets and reservation services (i.e., movies, sports events, concerts,
seminars, lodging, golfing) are sourced to the location of the event or the
location where the service is provided.
Agree Disagree If disagree, please explain
4.
Services
to tangible items, such as car or appliance repair or laundry or dry cleaning.
Example –
A customer drops off and picks up laundry in Minnesota, but the laundry service is performed in Wisconsin.
____ Source to the location where the
service is provided regardless of where the customer takes possession of the
serviced item. (The sale would be sourced to Wisconsin.)
____ Source
to the location where the customer takes possession of the serviced item. (The
sale would be sourced to Minnesota.)
____ Other (please explain)
Sourcing Survey for Services
Page 2
5.
Services
that in order to be completed may be performed in one or more taxing
jurisdiction, such as vehicle towing, armored car, funeral, detective or
investigative services.
A. A bank hires an armored car service to pick up money at their bank location in Minnesota and deliver it to their branch office in North Dakota.
____ Source to the location where the
service begins. (The sale would be sourced to Minnesota.)
____ Source
to the location where the service ends. (The sale would be sourced to North
Dakota.)
____ Other (please explain)
B. A funeral home in South Dakota prepares a body at the funeral home in Pierre, the funeral service is held at a church in Miller and the burial is at a cemetery outside the city limits of Miller. The funeral home performs services at each of the locations. The charges are subject to the South Dakota State sales tax. How should the transaction be sourced for local sales tax?
____ Source to the location where the
service begins. (The sale would be sourced to Pierre.)
____ Source to
the location where the service ends. (The sale would be sourced to the cemetery
location.)
____ Source
to the address of the person contracting for the service.
____ Other (please explain)
6.
Professional
services, such as attorney, accounting, consulting, detective, engineering
services, investigation, investment counseling, real estate brokers, research
services, surveying.
A. The result of the service is a report or other document being provided to the customer. Example – An attorney located in Wisconsin is hired to prepare a will for a client who lives in Illinois. The client has the completed will mailed to her home in Illinois.
____ Source to the
location where the service is provided. (The sale would be sourced to Wisconsin.)
____ Source to the location where the client receives the will. (The
sale would be sourced to Illinois.)
____ Other (please explain)
Sourcing Survey for Services
Page 3
B.
No
report or document is received as a result of the taxable service, such as
certain investment, legal, consulting or telemarketing services. Example – A
client located in North Carolina contracts with a CPA located South Carolina to
provide investment advice. The CPA sends a bill to the client for costs
incurred in obtaining information and providing the results to the client over
the phone.
____ Source to the CPA’s location in South
Carolina.
____ Source to the client’s location in North Carolina.
____ Other (please explain)
Example – Same as above, except the client receives
the investment advice at the CPA’s location in South Carolina.
____ Source to the CPA’s location in South
Carolina.
____ Source to the client’s location in North Carolina.
____ Other (please explain)
C.
The
seller delivers the results of the service to the client electronically.
Example – A client located in Florida contracts with a surveyor to have land
located in Michigan surveyed. The surveyor sends a report to the client electronically.
____ Source to the property location in
Michigan.
____ Source to the client’s location in Florida.
____ Other (please explain)
D.
An
attorney from Chicago, Illinois is hired to represent a client from Rockford,
Illinois in a lawsuit. The client is billed for meetings at the attorney’s
office in Chicago, depositions taken in Peoria, Illinois and Madison,
Wisconsin, a professional witness to testify during the trial in Springfield,
Illinois. The charges are subject to the Illinois State sales tax. How should
the sale be sourced for local sales tax purposes?
____ Source to the attorney’s location in
Chicago.
____ Source to the client’s
location in Rockford.
____ Source to the trial
location in Springfield.
____ Other (please explain)
Sourcing Survey for Services
E.
An
accountant is hired to do tax returns for a business with locations in
Oklahoma, Illinois and Ohio. The accountant completes the returns and mails
them to the company headquarters in Michigan. The customer can provide the
accountant with a Multiple Points of Use exemption certificate. In that case,
the seller would not charge sales tax, but the customer is responsible for
reporting and remitting tax to Oklahoma, Illinois and Ohio.
Agree Disagree Alternative
If the customer does not
provide a Multiple Points of use exemption:
____ Source to the accountant’s location.
____ Source to the client’s
headquarters in Michigan.
____ Other (please explain)
7.
Please indicate any specific
concerns that you have about sourcing services that have not been addressed in
the scenarios above.
8. State respondents only. Please include a list the specific services currently subject to sales or use tax in your state.