Wisconsin Realtors Association advises caution about Sales and Use Tax requirements relative to Property Management Services

In a recent WRA Legal Hottips email the following exerpt appeared:

“DOR Says Labor Component of Some Property Management Services Triggers Sales Tax

Recent audits by the Wisconsin Department of Revenue (DOR) have revealed a potential sales tax problem for property management firms providing services in Wisconsin. The DOR is taking the position that property management firms performing certain services (e.g., repair services, landscaping, delivery of parts, key making) are required to charge sales tax to their customers for the labor component of these services. This is the same rule that applies to third party contractors who provide these services. The DOR has indicated that sales tax is required regardless of whether the client is billed separately for the specific service or the service is provided as part of the services (both taxable and non-taxable) performed by a “loaned employee” for a specific property.

The “loaned employee” issue has been tagged by the DOR in another context. The DOR recently audited a public company and took the position that taxable services performed by their temporary employees are subject to sales tax and thus they should have been charging sales tax. This company has appealed to the Wisconsin Tax Appeals Commission with oral arguments in February.

This DOR approach has come as a surprise to property management firms. Given the current economy and state budget situation, many property management firms and their clients may be audited by the DOR in the coming months with regard to this issue. The WRA is researching the history and background of this apparently “new” interpretation by the DOR.”

Contact Pountain Partners for additional explanation and the sharing of resources or recommendations of experts in the field who can advise and guide in proper accounting procedures to assure compliance with state law.

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Marjean Pountain named Interim Editor of Depot Dispatch

The Elkhart Lake Chamber of Commerce has promoted Marjean Pountain to the position of Interim Editor of the Depot Dispatch Newspaper.  Marjean has been a contributing writer for a number of months, and the positive comments received about her articles resulted in little hesitation in the Chamber’s decision to offer the Editor role to Marjean when the position became available this month.  Based on the busy schedule Marjean maintains with her real estate consulting clients, she accepted the interim role for a few months until the Chamber finds a permanent replacement.  “Although I would love to make it a permanent assignment, I am happiest writing a stories and covering events upon request as my schedule permits.  I love Elkhart Lake and enjoy having a role documenting events and matters of interest to local residents.”

Marjean states that she enjoys writing as well as covering local news and events to promote in the newspaper.  She prefers to focus on the historical aspects as well as nature and wildlife in connection with the local news as the public expresses the most positive feedback on such stories. 

In her busy role as a real estate consultant Pountain sets her own hours and schedule.  Her contributing writer position brings variety and interesting challenges that compliment her real estate work and give her balance that she enjoys.