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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12194
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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What are my tax obligations (sales/use) if I charge for membership

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What are my tax obligations (sales/use) if I charge for membership to my website? Professional trainers will pay to list/link their businesses/classes/services, and that information will be free for the public to search and use.

NPVAdvisor :

Hi, more than likely you have no obligation it depends on the state, but only 2 states charge sales tax on ANY sort of PROFESSIONAL services

NPVAdvisor :

Can you tell me what state you're in?

NPVAdvisor :

excuse me, I just checked and that number is XXXXX

NPVAdvisor :

here's a site from, based on NAIC, by state (

<table border="0" cellspacing="0" cellpadding="0" width="789" style="letter-spacing: normal;orphans: auto;text-indent: 0px;text-transform: none;widows: auto;word-spacing: 0px;">

Federation of Tax Administrators

NPVAdvisor :

Als, here's a searchable database, by state, by business code (updated for 2010)

NPVAdvisor :

Here's an article from on sales taxation of services:

NPVAdvisor :

Currently, many states exclude service providers from sales and use taxes. However, a number of state lawmakers have begun to re-examine the exclusion of service from sales tax liability because they realize that a potentially large source of revenues is going uncollected. So as you might expect, these lawmakers are working on changing their laws to treat some, if not all, services as taxable.

NPVAdvisor :


NPVAdvisor :

And here's an excellent listing BY STATE (51 jurisdictions) of what sales and use taxes are imposed

NPVAdvisor :

Hope this helps

NPVAdvisor :


NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better. That's the only way they will pay us here.

HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question

Customer: replied 4 years ago.
I'm in Texas. I haven't formed an LLC yet. I wanted to find the answer to this to help me determine if I should inc in TX or another state. What are the six states? I'm not at my PC, using my phone to check answer.

Just saw your reply.

Will get. Give me a sec

My apologies, as of the 2007 table there are 7 that tax PROFESSONAL, as I mentioned, services.

Those seven, not six, are the following (the number beside the state is the NUMBER of services (categorized as professional) that the state taxes.

Delaware 9
Hawaii 9
New Mexico 9
South Dakota 5
Texas 1
Washington 9
West Va 1

Texas specifically:

In Texas, a tax is imposed on the sale at retail of taxable items and upon the storage, use or other consumption in the state of taxable items purchased, leased or rented from any retailer for storage, use or other consumption in Texas.


Taxable items are tangible personal property (including computer programs).


Taxable services include the following:

  • amusement services
  • cable television services
  • personal services
  • motor vehicle parking and storage services
  • repair, remodeling, maintenance and restoration of tangible personal property
  • telecommunications services
  • credit reporting services
  • debt collection services
  • insurance services
  • information services
  • real property services
  • security services
  • data processing services
  • real property repair and remodeling services
  • telephone answering services
Lane and other Tax Specialists are ready to help you

Thanks so much!

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Thanks again,