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Hot Check Fee Sales Tax

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September 03, 2008, 11:01
Reagan County Attorney
Hot Check Fee Sales Tax
Checkstar and Vericheck have begun adding sales tax to their $30.00 hot check fee. Right now my office is hesitant to collect the additional $2.48 for them. Is this a taxable service, anybody?

Russell Ash
Reagan County Attorney
September 04, 2008, 09:07
Ken Sparks
In the absence of any statutory authorization, I would not collect it.
September 09, 2008, 09:38
The issue came up years ago at our office, so I called the state sales tax folks who assured me that the charging of the fee by a third party bill collector was a taxable event, so sales tax would be payable on it.

That was good enough for me at the time, but currently we don't have much in the way of third party collector that file with us, so the issue has not recently presented itself again.