Should and architect charge sales tax on time when purchasing supplies for a client?

[Waterl]

Hello!

BACKGROUND:
I'm an architect and provided design and construction administration services to a client in 2021 (and continue to do so). This was a very hands-on (services vary depending on client sophistication and needs but are customarily considered architectural services.). I bring this up, as because of my profession, I do no collect sales tax on architectural services.

Particularly due to COVID 19, but likely going forward due to the status of the construction industry for the foreseeable future, I directly purchased several construction materials for the project and received (or will receive) reimbursement. For example: Due to supply limitations with insulation needed at critical times of the project; I used my architectural expertise to determine what was available locally, in the quantities needed, and that worked for the project (vs what we drew on the drawings pre-covid). This isn't unusual for a 'change' to occur during construction and requires architectural input - but the unusual part is due to the literal minutes these items would stay on the shelves (I was literally tracking truck loads from the factory), they give me cart-blanc to purchase for reimbursement. This was similar from everything from faucets to flooring to cabinets. Some of these items have specific code requirements that need to be checked by an architect, others do not but are customarily specified by an architect.

QUESTION: I write these off as 'reimbursable expenses' (I know how to do that). (I'm working in an LLC Partnership). Should I have been collecting extra sales tax for these 'services' since I purchased rather than just reviewed or recommended as an architect? I did pay regular sales tax on items and did pass that through. NOTE: This was not the primary purpose of them hiring me, but a secondary role due to circumstances; HOWEVER it did make up a proportionally larger percentage of the money that exchanged hands due to the quantities and costs of materials.

Thank You!

[ColeenD3]

Sales tax on services varies from state to state. If your state allows it, you may charge it.

There are significant differences across the country, so be sure to check each state accordingly.

1. Services to tangible personal property (TPP): Many states now tax services to TPP at the same rate as sales of TPP. This includes improvements or carpentry repairs to property, and car repair.
2. Services to real property: Includes work done on buildings and land, such as landscaping or janitorial services.
3. Business services: Here, services performed for businesses and companies include telephone answering, credit reporting and credit bureaus, and extermination services.
4. Personal services: These comprise businesses that provide personal grooming or other types of self-improvement, tanning salons, massages not performed by a licensed therapist, and even animal grooming.
5. Professional services: These are considered the least-taxed services due to powerful lobbying presences. Accountants fall into this area, as well as the work performed by attorneys and healthcare professionals, among other licensed professionals.
6. Amusement and recreation: Where there’s fun, there may be a tax on services; many states tax admission to amusement parks and events such as concerts and professional sports.

Sales tax