It does indeed vary from state to state, in some cases it varies wildly. Rob\'s correct that most of us fall under \"service providers\", but several states have a service sales tax bill in the works, including Texas. (Am I right, Bruce?) So you\'ll need to find out exactly what\'s happening in Iowa and adjust your billing accordingly.
Forgive me for posting crude questions in here, but I\'m new to the business aspect of music and everyone here has a great Handel on it. [img]images/icons/wink.gif[/img]
I\'m sure the answer to my question differs from state to state, but do I need to charge sales tax if I provide a client with music or a jingle? It\'s seems tricky since music is an intangible creation.
I sure hope not (!@!#!#). Because I haven\'t been doing this. I believe sales tax applies to materials provided. Since we essentially are a \'service business\' I have to think it doesn\'t apply. In some states (Oregon as one example), there is no sales tax. Hope this helps.