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« A Favourite ITA Topic | Main | A Sense of Perspective » June 26, 2006Sales tax for government services?In Montgomery County, Pennsylvania, a showdown is brewing between county commissioners and the state government. As in many states, county government offices are required to provide copies of public record documents (such as deeds, court filings, etc.), and may charge a fee (but not make a profit) for this service. The Pennsylvania Department of Revenue, however, has announced that beginning next year county offices will be required to collect state sales tax for these services. The state associations for recorders of deeds and for treasurers have officially opposed this move, and now the Montgomery County commissioners have sent the Department of Revenue a letter informing them they have no intention of collecting the tax: "The whole premise of this is that they are comparing us to Kinko's which, when you go, you bring something in to copy," said [Recorder of Deeds Nancy] Becker. "When you come into a county office, it is the only place where something is filed." Probably one of the most annoying aspects of this requirement would be the need for county offices to make change down to pennies. A copy of a document which formerly cost $6 may now cost $6.36. And as the article notes, it seems redundant to charge tax on a government service. Posted by Eric Seymour at June 26, 2006 05:15 PM CommentsAre there any other places where they charge tax on services? 'Cuz I'm thinking they don't charge sales tax on other services, like hairdressers, doctors, dentists, etc. It's usually just if you buy products during the same visit that any sales tax is charged, and even then, the tax is only applied to the goods sold. Posted by: lawyerchik1 at June 28, 2006 08:57 AM | permalink Posted by: mark at June 28, 2006 04:21 PM | permalink Post a comment |
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