Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Which states require tax on labor charges?

Customer Question
We service stand by emergency...

We service stand by emergency power generators up and down the Eastern US. We are trying to determine in which states we are required to charges sales tax on the labor charges. We are particularly interested in the New England States, North and South Carolina, Virginia, New York, New Jersey, Penn, Delaware, Maryland, Tennessee, Georgia, Alabama, Florida, West Virginia, Louisiana and Texas. We are also trying to find out about tax on service contracts where the contract price includes the parts and labor as set in the contract. Again, each state's rulings on this.

Submitted: 11 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 hours by:
10/18/2006
Tax Professional: Ed Johnson, Tax Preparer replied 11 years ago
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Verified

Generally, all states who have sales tax also have a use tax, and certain labor and services are taxed. However, which labor and services may vary from state to state.

The only states who do not have a sales and use tax are: Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon.

Hawaii charges an excise tax in lieu of a sales tax.

For this reason, I recommend registering in each state, and obtaining a sales tax certificate. Then use the following software to help do your taxes:

http://www.thestc.com/

Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Verified
Ed Johnson and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 11 years ago

That didn't really answer the question I asked which was which states charge tax on labor. You answered which states have no sales tax.

Tax Professional: Ed Johnson, Tax Preparer replied 11 years ago

All states except the ones listed charge tax on labor.

The states that you are concerned about, North and South Carolina, Virginia, New York, New Jersey, Penn, Delaware, Maryland, Tennessee, Georgia, Alabama, Florida, West Virginia, Louisiana and Texas, all charge sales tax on labor, including the conditions of the contracts that you are concerned about.

However, the detail of information you want requires about 12 to 18 hours of research.

Ask Your Own Tax Question
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
10,760 Satisfied Customers
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee

Ed Johnson is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I live in WA State where we have sales tax. My location
I live in WA State where we have sales tax. My location raised sales tax April 1 2017. So for the first three months of the year it was one rate and the rest another. To take the general deduction do … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
513 satisfied customers
I need help figuring out what to pay Use Tax on for my state
I need help figuring out what to pay Use Tax on for my state business sales tax filing in Texas. Texas sales tax code says they tax for Saas services so I'm trying to figure out if I need to pay use t… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
When is the last update on the tax software? Can you buy the
when is the last update on the tax software? Can you buy the software when it is fully updated direct from H&R Block?? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Whats the best tax software to file personal and business
Whats the best tax software to file personal and business taxes. we started our firm last year and we have very few clients we would like to pay per tax file because we have about 30 clients only.What… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
513 satisfied customers
Our Heating and Air company has started using new software
Our Heating and Air company has started using new software that links with Quickbooks Online.In the software, for ITEMS that will be on our invoice it asks for to associate that item with: A. EXPENSE … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Is inheritance income from Germany subject to US taxes?
Is inheritance income from Germany subject to US taxes? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
In an independent contractor in Hawaii. There is a 4% excise
In an independent contractor in Hawaii. There is a 4% excise tax for independent contractors. I'm a tennis pro working for a resort. The resort pays me 70% of my lesson. For instance, a lesson is $100… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm in the state of Florida and required to sales tax on
I'm in the state of Florida and required to sales tax on Fabrication - how do I determine what percentage of a manager's salary is considered taxable under the fabrication rule … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Use your tax software to complete this project. As your
Use your tax software to complete this project.As your Comprehensive Tax Return Final Project, you'll be preparing the 2016 tax return for Kevin Kent and ***** *****. The Kent's Intake Sheet is below.… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
What do I need to be aware of with the US tax law whenever I
What do I need to be aware of with the US tax law whenever I am hiring someone off shores? I currently have an assistant who lives in the Philippines and my business and I are located in the United St… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I own a business in Kentucky and owe state sales tax to the
I own a business in Kentucky and owe state sales tax to the state of Kentucky. Can the state of Kentucky place a lien on my home in Pennsylvania jointly owned by me and my wife … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Question for a Tax Attorny who Knows US tax Laws regarding
Question for a Tax Attorny who Knows US tax Laws regarding Foreign Companies ? My company is a Cayman Company (#1) (Foreign) owned by USA Citizens (2). Company (#1) filed IRS Form 8832 to be Taxed as … read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
In mass u have to pay excise taxes before u can request a
In mass u have to pay excise taxes before u can request a new license, mine equal 1200$ , I just don't have that money , I will never . I barely make it as it is, is there some .thing I can do or only… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Lane I am using tax software for 1099c cancellation of debt
For Lane: Lane I am using tax software for 1099c cancellation of debt and the box that asks for "debt cancelled while insolvent" it has to be equal or less than the cancellation amount? I thought you … read more
Chad Schoch
Chad Schoch
Bacehlors of Business Administration
20 satisfied customers
What is the current NY State sales tax on materials and
What is the current NY State sales tax on materials and labor? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I sent my out of state California excise franchise tax work
I sent my out of state California excise franchise tax work in but it never arrived … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
84 satisfied customers
Will try to apply for a sales and use tax certificate for a
Will try to apply for a sales and use tax certificate for a new dot.com business S corp or LLC not sure yet? Question is how do I avoid being denied the sales and use tax certificate due to the reason… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I need to file my sales and use tax for the second time for
HI, I need to file my sales and use tax for the second time for my online retail business; however, this time I have some invoices and numbers to add to it. All my purchases from my suppliers were tax… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,804 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x