Generally, professional services are not taxable in Pennsylvania. However, editing services are taxable. Editing is defined by the state as “services performed upon written material, film, videos and audio tape, including altering, adapting, refining, proofreading or confirming.
This document is an explanation of Act 45 of 1998 which created an exemption called “Building Machinery and Equipment” (BME). The BME carve-out sets aside certain materials and items that are commonly used during a construction project with certain exempt entities and designates them exempt from sales tax.
Sales tax on labor in PA. Fees for labor are taxed when the labor is expended on a taxable item. For example, repairs to a vehicle, appliance or jewelry are taxable. Labor charges to or repair items that become part of real estate – such as repairs to a water heater, boiler or new roof – are not taxable.
Contractors in Pennsylvania need a license to remain on file with state records and to ensure that contractors meet minimum skills and knowledge thresholds to provide safe, high-quality services.