Compliance
Which States Impose Sales Tax on Lobbying Services?
June 5, 2026 | Jose Perez
Seven states and one territory currently impose a sales tax on lobbying services, including Connecticut, Hawaii, Kentucky, New Mexico, Pennsylvania, South Dakota, West Virginia, and Puerto Rico, with rates and rules varying widely by jurisdiction. In some states, the sales tax on lobbying services gets more complicated at the local level. In New Mexico, Pennsylvania, and South Dakota, local jurisdictions can layer on their own rates, meaning the total tax owed depends on where the lobbying activity takes place. West Virginia takes a different approach than most: lobbying is generally taxed at 7%, but licensed attorneys providing services like legislative drafting or written legal analysis are exempt. Efforts to expand lobbying compliance obligations through broader sales tax bases have come up in states like Louisiana, Nebraska, Maryland, and Indiana in recent years, but none have succeeded so far. Missouri voters will have a say on a constitutional amendment to expand the state's sales tax base, and Michigan has active legislation that would broadly impose an excise tax on currently untaxed services, which could sweep in lobbying.
