24 more states considering sales tax on accounting and tax services in 2013

We recently reported on a new tax package being pursued by Ohio Governor John Kasich, which would reduce income taxes, but add many professional services to things subject to sales taxation.

That would include tax professionals, accountants and other financial and legal advisors.


It turns out that Ohio is not alone. The new tax proposal in Minnesota would also have a similar effect. The AICPA's Advocacy program states that as many as 24 states "anticipate that their 2013 legislature will consider a proposal to tax accounting services."


Currently there are three states that tax professional services without exempting the services of accountants. They are New Mexico, Hawaii and South Dakota.


Both the Minnesota Society of Certified Public Accountants and the Ohio Society of Certified Public Accountants have started to organize against the proposals in their states. (Ohio society's information on sales tax; Minnesota society's information on sales tax.)


More information on the taxation of accounting services is available via the AICPA, including white paper on the issue.

 

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