The Ohio Housing Council (the "Council") recently issued the following alert: "Sales tax must be listed separately on invoices or the buyer may be charged by the State of Ohio for the tax." According to the Council, the State of Ohio has been assessing sales tax and penalties to contractors and property management companies for tax services they purchased when the invoice did not break out sales tax as a separate line item. Thus, per the Council, invoices for taxable services, such as landscaping or painting, must contain a separate sales tax line item instead of the simple phrase "sales tax included." The Council advises contractors and property managers to review all invoices to make certain that property tax is listed separately.
One of our loyal readers, a representative from the Ohio Department of Taxation’s Communications Office, has pointed out that painting is not a taxable service. Accordingly, the above article may not apply to painting services.