tnleverett

Hey Guys,

I was wondering if you guys are required to collect sales / use tax on your mobile marketing plans.

The state of Georgia requires sales / use tax on tangible personal property but I don't consider any aspect of mobile marketing to be tangible personal property.

Do you guys charge taxes on setup fees and monthly management fees?

I can see maybe having to charge sales tax on a mobile website for a local business but I am not really even 100% sure about that.

As you can imagine, I have been going in circles with the GA Dept. Of Revenue website and can't get any concrete answers. My wife even called them a couple of days ago and the guy referred her back to the website.

Can someone please let me know how to handle the tax issues with mobile marketing?

Thanks!

Tommy

BizGrabbers

Very good question. It's my understanding that in Alabama, it's the same as you described in Georgia. Only tangible good are taxed. But you do raise some interesting questions. It's too bad that the state only refers you to a website and they feel that since they have the site, they shouldn't have to be bothered with questions. Even though you're questions may not be fully answered on their site. Or if they are, they don't make it very easy to find the answers.

allcash830

Get a good accountant that understands your type of business. I too am in GA and do not apply sales tax for websites or mobile sites that I build. If I were to burn the code to a disk and deliver that disk to my customer then it becomes tangible and a sales tax would be required. Best business practice is to get a good accountant.