No. There are exceptions, usually made to extract revenue from particular services, sometimes targeting people that don't live in that locality, like hotel taxe

No. There are exceptions, usually made to extract revenue from particular services, sometimes targeting people that don't live in that locality, like hotel taxes, but very seldom do they tax things like attorney services (wonder why...) or software development. NYC has a weird list of services. http://www.nyc.gov/html/dof/html/business/business_tax_nys_sales.shtml http://www.nyc.gov/html/dof/html/business/business_tax_nys_s... The Texas list is more comprehensive, and includes web site creation http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html This is also an option that would be useful in creating a VAT, if the government has access to all of these transactions. Sadly, the states already tax most of this money and it would look bad to have Feds move in there. However, the gap in service taxes would appear to be an opportunity, especially in B2B taxes which would be invisible to most people.