The Case for Taxing Services
Tangible Personal Property Services
Services that are performed directly on TPP in some form or another.
TPP services will usually involve the use of specialized knowledge, expertise, or ability but will
usually involve direct contact with the TPP itself.
In performing TPP services there may or may not be a transfer of other TPP, and if so, the transfer
of TPP may or may not be separately stated on an invoice or billing statement.
Examples of TPP services include carpentry, car repair, and other equipment repair and
installation.
As explained, the state does not tax such services if the services are separable and separately
stated. Taxing these services without consideration of separability and whether separately stated
could potentially ease administration.
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