As discussed in an earlier alert, Ohio Governor John Kasich’s proposed budget bill broadly subjects previously untaxed business activities to sales tax. The bill seeks to expand sales tax to include most “services.” While the bill itself is well over 4,000 pages in length, the good news is the definition of what is a taxable “service” is relatively short. Unfortunately, the definition’s brevity is due to it mainly listing the excluded activities.
Under the bill, “service” means “an act performed for another person for a fee, retainer, commission, or other consideration, including any fee or other amount charged for access to a physical fitness facility or recreation and sports club.”