Question
Assume various clients have approached you regarding the following transactions and whether such transactions are subject to sales tax or not subject to sales tax.
Assume various clients have approached you regarding the following transactions and whether such transactions are subject to sales tax or not subject to sales tax. Assume that all transactions take place in states that (1) impose sales tax upon all sales of tangible personal property and (2) do not impose sales tax on sales of services. First address what the true object test is and the difference between a bundled transaction and a mixed transaction? Then, explain whether each transaction is taxable or not taxable and why. Explain your answers. Also, indicate whether you recommend that the client bill a particular product and service as lump-sum or separately stated on the invoice.
1.) Sale of Suits and Service of Tailoring on new suits
2.) Sale of Hair Styling and Coloring
3.) Architects Services and Blueprints
4.) Catering Services (company provides the food)
5.) Moving Service and Moving Boxes that remain with the Moving Company
6.) Lawn Fertilizing Services (company provides the fertilizer)
7.) Service of Oil Changes in Cars (company provides the oil)
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