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Charging Sales Tax on Services

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"Charging Sales Tax on Services"

Sales tax is one of the largest sources of state revenue and is crucial to basic government operations. Governments are struggling to fill post-recession revenue gaps, and are increasing the types of goods and services that are subject to sales tax.

As more states expand taxability on services and tangible goods, the potential for sales tax calculation errors and audit risk rises. 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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