I. NON-TAXABLE SERVICES -
A. Personal / Professional Services:
Checkfree Services Corp. v. Harris, Ohio BTA Case No. 2019-43 (October 10, 2024) on appeal before Ohio Supreme Court (Case No. 2024-1569). The BTA held that certain financial authorization services (Debit Authorization) were not taxable automatic data processing (“ADP) or electronic information services (“EIS”). They did not involve the service provider (CheckFree Services Corp.) processing or accessing any information from the consumer’s financial institution. Rather, CheckFree simply conveyed a transaction request from a vendor’s point-of-sale system or bank ATM to the consumer’s bank and relayed the “Yes” or “No” response from the consumer’s bank back to the requesting equipment to authorize or deny the transaction. This service verifies whether a consumer’s account has sufficient funds to complete an ATM or vendor transaction using a debit card.
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