Shampoo that is sold by the bottle to a customer is purchased tax free from a supplier by the business. The business charges the customer sales tax on the selling price. Following are items that are taxable when used in the performance of barber and cosmetology services and when used to maintain the business. This list is not intended to be complete. If the inventory was purchased tax free, the business owes sales tax on what it uses in the course of business.
Many communities have one or both local option sales taxes in addition to the state sales tax.
Each local option tax only applies in those jurisdictions that have imposed it. Local option sales tax applies to the same goods and services that are subject to sales tax. Products, services or organizations that are exempt from sales tax are usually exempt from local option tax. The local option tax should be collected if the product is delivered or the service is performed in a local option tax jurisdiction. The same services or supplies that a barber or hairdresser provides that are subject to sales tax are also subject to local option sales tax if the service or product is performed or delivered in a local option tax jurisdiction.