District of Columbia Issues Revised Sales & Use Tax Guidelines

As of October 1, 2011, the District of Columbia sales and use tax will apply to a new range of service providers. Armored car, private investigation, and security services are now required to pay the sales and use tax at the general 6 percent rate. This tax will apply to any charges for services rendered under existing contracts for ongoing services, as well as for any new services beginning on or after October 1, 2011. The tax exists regardless of the service’s duration or the date on which the contract was signed.

Limits Defined by the Office of Tax and Revenue

According to guidelines issued by the District of Columbia Office of Tax and Revenue, an “armored car service” is defined as any company involved in the pickup and delivery of money, receipts, or other items of value. Such companies must use personnel and equipment to protect the property while in transit. Taxable income for “armored car services,” however, doesn’t include any separately-stated charges for coin rolling or change room services.

The other fascinating element close to this subject matter. “Private investigation” services are defined using slightly more complex requirements. The tax regulations apply to any legally-recognized organization that conducts investigations with the purposes of providing information related to a crime (either already committed, or threatened to be committed), the identity or character of any person, or the credibility of a witness or any other individual. “Private investigation services” taxes also apply to those involved in investigations to locate a missing individual or property, or to ascertain the cause of a fire or accident. Additionally, this category doesn’t include any private process services unless the service goes beyond the simple process to an actual missing person investigation. There are other specifications for this category which can be gleaned from the Office of Tax and Revenue website.

In the end, “security services” taxes apply to any activities performed as a security guard for compensation. Such activities include anything done to protect an individual or property, provided on the premises of a personal or commercial property, or done to monitor an electronically-operated burglar alarm system. Even so, this category doesn’t apply to any installation services or the maintaining of security systems for a customer. Similarly, provision of medical response services aren’t subject to sales and use taxes.

Any of the aforementioned service providers who aren’t currently registered to receive sales and use tax must either register online or at the Office of Tax and Revenue website.

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana, money did not always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth tax attorney his practice has given him the opportunity to help many people stop wage garnishment, IRS harassment and resolve their tax debts.