Hi everyone!

Our bank branches are in two states (Minnesota and Iowa). Iowa requires sales tax to be charged and collected on deposit services, such as wire fees, money orders, statement fees, etc. Minnesota does not.

My questions:
1) If a customer opens an account in our Iowa branch, but then relocates to Minnesota (or another non-taxed state), should the services be taxed?
2) If a customer opens an account in our Minnesota branch, but then relocates to Iowa - should the services be taxed?

My guess is that it should follow the customer's physical location (ie: mailing address)- much like online rentals (ie: Apple store movie rentals, Netflix, etc) do, but I'm not for sure.

You're asking about state-specific laws. You may have a better chance of obtaining an informed response if you post your question in the Iowa and/or Minnesota state discussion forums.

https://www.bankersonline.com/forum/ubbthreads.php/forums/29/1/iowa

https://www.bankersonline.com/forum/ubbthreads.php/forums/20/1/minnesota

Or contact state tax officials.