This note will examine Ohio's statutory framework for the exemption of personal service transactions from sales taxation in light of judicial developments and the Tax Commissioner's interpretations. The analysis begins with whether a mixed transaction, one involving personal service and tangible personal property, is subject in its entirety to sales taxation only because a small amount of personal property was included. Then the advantages and disadvantages of separating personal service and personal property expenses will be examined. There the taxpayer would charge the client sales tax for the personal property portion of the transaction, but not for the personal service portion. Thereafter, the focus will be upon resolving the turmoil that has developed around Section 5739.01(B) by construing the "real object test."
Petersen, Gregory L.
"Sales Taxation of Mixed Transactions in Ohio: A Proposal to End the Turmoil,"
Akron Law Review: Vol. 12
, Article 11.
Available at: http://ideaexchange.uakron.edu/akronlawreview/vol12/iss1/11