The Case for Taxing Services

Real Property Services Services that are performed directly on real property such as land, buildings, or other structures. In many cases, the service provider is deemed to be the consumer (rather than a retailer) of the TPP that they use in performing or carrying out their real property service. Real property services include trades such as janitorial, electrical, air-conditioning and heating, drywall, roofing, masonry, painting, landscaping, and fertilizing. Under current law, the application of sales tax to these types of transactions can be confusing, making voluntary compliance difficult. Taxing these services could potentially ease administration. CDOR

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