Notary fees are subject to which state tax?

• A. State general excise tax
• B. Sales tax
• C. Income tax
• D. Property tax

Answer: (A)

Notary fees are subject to state general excise tax because this tax is charged on the gross income a business earns from its activities, including fees charged for services like notarizations. The general excise tax covers the receipts a business brings in from providing services, so the money you collect for a notarial act is part of that tax base. This is different from sales tax, which is tied to the sale of goods and certain taxable services; notary services are typically classified as service income rather than a taxable sale of tangible property. It’s also not the same as income tax, which targets personal or business earnings, or property tax, which is based on the value of property owned. So the money you collect for notarial acts would fall under the state general excise tax.