In the state of Pennsylvania, would you pay sales tax on labor? I have three examples:

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Q. (cont.)

  1. We are paying a company to set up staging, so it's just labor we paying for. This does not include the staging, just the hours for the workers to set it up.
  2. During an event we have to have security. The security company charges us the hours of the employees.
  3. Janitorial: We pay sales tax on the product but would we need to pay it on the labor hours also?

A. 

We spoke to Don (agent #837) at the Pennsylvania Department of Revenue. His answers to your questions:

  1. No, you do not have to pay sales tax on the staging service as long as there is no equipment rental involved.
  2. Yes, security is considered a “help supply service” and is subject to sales tax.
  3. Yes, janitorial services are also subject to sales tax.

Taxable services in the Commonwealth of Pennsylvania are detailed here:

http://www.pacode.com/secure/data/061/chapter31/s31.5.html          

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