Fiserv Unit’s Case Will Measure Scope of Ohio Taxable Services

The Ohio Supreme Court will hear arguments Tuesday over whether a test for determining the taxability of multi-part service transactions can be broadly applied—a question worth nearly $2 million to one Fiserv Inc. subsidiary.

Ohio applies the true object test, which looks to the intention of a transaction to determine whether it’s a taxable computer service or a nontaxable professional service. Courts around the country have been grappling with how to apply similar tests as the service economy becomes increasingly digital.

CheckFree Services Corp., a financial services technology company, is asking the justices for a sales tax refund on ...