Labor, not a sale (WAS job invoices?)

[Ron Nossaman]

>Slightly a new direction on the subject, just a thought for discussion.  In
>some states a sale is subject to tax but services are not taxable.  When
>completing invoices in one of these states you can save your client some
>money and yourself hassle by always indicating part replacement tasks as a
>"service".  For example, a new set of damper felts may be written up as
>"installed new damper felts".  As such the invoice defines that you sold
>damper felts and thus it must be itemized separate from the "labor" portion
>of the bill.  The other alternative however is to write it up as a service.
>For example "Complete Damper Servicing", or "Damper Overhaul".  Written in
>this format it entirely becomes a service.  This is closely cutting the
>corners of definition however it is highly unlikely that a piano tech would
>ever be challenged in such a small scale sole proprietorship business.
>
>Just a thought the for the day.
>
>Rob Goodale, RPT

Not so in Kansas. Labor has been taxable for somewhat over 25 years, so the 
door is long closed on that dodge. Since then, we've gone from the sales 
tax rate of the point of origin of the business, to the tax rate of the 
point of sales (with all the obvious bookkeeping nightmares for anyone 
doing business farther than 100 yards from their front door), back to the 
point of origin tax rate when the point of sales insanity proved to be 
unworkable. After not nearly enough years of relative stability, we are now 
back to the point of sales thing, where any service, part, or bit of advice 
sold outside the range of our personal aura is subject to the unique and 
continually mutating sales tax of the day on the specific patch of the 
planet on which we sold it. Sanctions for the failure to comply have 
magnanimously been deferred to the first of the year to allow us to get our 
affairs in order to universally direct our professional existences toward 
these ends. We are, as should be expected, immensely grateful for this 
temporary waiver of retribution, and overwhelmingly eager to throw 
ourselves on this latest sword of benevolent servitude to the obvious all 
wise and powerful rulers of Oz. In the time honored custom of idiot 
"reforms", a new set of euphemisms has been conjured up to make it right. 
The core concept is lovingly called "destination-based sourcing", and the 
temporary deferment of sanctions for non-compliance is being called the 
"relaxed" approach to implementation, with the Department of Revenue staff 
currently conducting a strong community outreach effort to explain the new 
rules and help businesses comply. Once the framework is in place in the 
Department, we will be notified, and the implementation period that holds 
retailers exempt from sanctions will cease. Fortunately, "The Department 
will continue to work with Kansas retailers to anticipate and assist with 
the changes required in the tax collection rules dealing with destination 
sourcing". Imagine how relieved we are at that news.

No ma'am, paper documentation is no longer acceptable. Since 10:30, we 
require tattoos.

Ron N