Taxes 201: Industry Specific Taxes

I have years of accounting education and related experience, but I’m not a CPA. I can’t file taxes for you, but I can help you plan. Many industries in the U.S. are subject to taxes and fees beyond standard income, sales, and payroll taxes. I Below is a categorized list of common industry-specific taxes that small business owners and their advisors should be aware of (source: ChatGPT, “Small Business Taxes” by Garrett Monroe:

Transportation & Trucking

 Heavy Vehicle Use Tax (HVUT) – Federal (Form 2290)

 State Highway Use Taxes – e.g., NY HUT, KYU (Kentucky), OR Weight-Mile Tax

 International Fuel Tax Agreement (IFTA) – Multi-state fuel tax reporting

Alcohol & Beverage

 Federal Excise Tax – Distillers, brewers, wineries pay tax to the TTB

 State Alcohol Taxes & Licensing Fees – Vary widely

 Must file detailed production and sales reports

Tobacco/Vape Shops

 Federal & State Excise Taxes

 Special licensing, stamp reporting, and monthly filings

 Vape/e-cigarette taxes in some states (e.g., Pennsylvania, Minnesota)

Beauty & Cosmetology

 Occupational license fees – State boards (e.g., cosmetology license renewals)

 Salon booth rental taxes – Some states tax booth rent

 Sales tax on services in some states (e.g., CT, HI)

Gaming & Amusement

 Amusement machine taxes – e.g., jukeboxes, arcade games

 Bingo & Raffle Taxes – Often taxed even when nonprofit-sponsored

 Casino gaming licenses (even for small bars or clubs)

Real Estate & Short-Term Rentals

 Occupancy/Hotel Taxes – Required for Airbnb hosts

 Transfer Taxes – When selling real property

 Rental Property Licensing & Inspection Fees – Common in many cities

Construction & Trades

 Contractor licensing fees

 Gross receipts taxes in states like New Mexico and Nevada

 Use Tax on tools/materials brought in from out of state

Arts, Events, and Entertainment

 Live entertainment taxes – e.g., Nevada

 Venue fees, special event permits

 Temporary sales tax permits for pop-ups

E-Commerce & Retail

 Marketplace Facilitator Taxes – Some states still require direct seller filing

 Product-specific excise taxes – Batteries, sugary drinks, etc.

Cannabis & CBD

 High excise taxes – Vary by state

 Special sales tax rates or local surcharges

 License & seed-to-sale tracking compliance

Pet Services & Animal Sales

 Pet breeding license fees

 Pet sales tax – Varies by state

 Boarding/daycare taxes – Local municipalities

Other Industries to Consider

Telecom/VoIP: Universal Service Fund (USF) contribution, telecom taxes

Financial Advisors: Investment advisor registration fees (state-by-state)

Nonprofits: UBIT (Unrelated Business Income Tax), sales tax filings

Fuel Retailers: Federal & state fuel excise taxes, environmental fees

Food Trucks: Commissary fees, mobile vendor permits, special local taxes