Delaware, Florida, Georgia, Hawaii Sales And Use Tax (United States Series #4)

Aaron Giles Sales And Use Tax 3

Delaware Sales And Use Tax

The State of Delaware is one of the five States In the in the United States that does not have a Sales And Use Tax.

Florida Sales And Use Tax

The state of Florida levies a 6% state sales tax rate on the retail sale, lease or rental of most goods. Counties impose their own additional surtaxes. The range of sales tax rates charged within the state of Florida is between 6% and 7.5%. Florida’s county surtax rates are capped on purchases over $5,000, which is different from other states. For example, if you purchased a motor vehicle with the purchase price of $20,000 in a county with a 1% surtax rate, 7% tax would be due on the first $5,000 of the purchase price and 6% tax would be due on the remaining $15,000 of the purchase price.

Use tax is due on all purchases brought into the state of Florida, unless specifically exempted. Use tax is due at the same rates as sales tax. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of July should be reported to the state of Florida on or before August 20th.

Florida Sales Tax Exemption For Software

Florida provides a sales tax exemption for software that is either custom or electronically transferred. Florida’s definition of what qualifies as custom software is broader than many other states because it considers a software program to be exempt if a salesperson or technician surveys a buyer’s needs and makes recommendations. Electronically transferred or web-based software is not considered to be tangible personal property by the Florida Department of Revenue and is therefore not subject to Florida sales and use tax. The challenge with claiming either of these Florida sales tax exemptions for software relates to having documentation to support the purchase being tax exempt. Agile Consulting Group’s sales tax consultants know from experience the type of documentation that the Florida Department of Revenue finds compelling evidence supporting an exemption for software purchases. For more information on Florida Sales Tax Exemptions, go to the following site for updates:

Florida Department Of Revenue
Florida Sales And Use Tax Incentives
Florida Sales And Use Tax Forms

Georgia Sales And Use Tax  

The state of Georgia levies a 4% state sales tax rate on the retail sale, lease or rental of most goods. Local jurisdictions impose additional sales taxes up to 4%. The sales tax rates in the state of Georgia are within the 4% to 8% range.

Use tax is due on all purchases brought into the state of Georgia, unless specifically exempted. Use tax is due at the same rates as sales tax. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Georgia on or before February 20th. For updated information on sales and use tax, go to the following site for updates:

Georgia State Department Of Revenue
Georgia State Tax Credits

Hawaii Sales And Use Tax  

In lieu of a sales tax, the state of Hawaii collects a 4% general excise tax, which is assessed on the retail sale, lease or rental of most goods. Oahu charges an additional 0.5% surtax.

Use tax is charged on the purchase price or value of tangible personal property purchased or imported, whichever is applicable. Depending on the use the rates are different. The rate is 0.5%, if the item is for resale at retail. The rate is 4%, if the item is for use or consumption. Use tax is applied on the same basis as general excise tax is within the state of Hawaii. If you are required to file a return on a monthly basis, returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be filed with the state of Hawaii on or before the last day of February. For more information, visit the following sites:

State Of Hawaii Department of Taxation
State Of Hawaii Tax Forms And Publications
State Of Hawaii Tax Laws And Rules

Have a sales and use tax question? Contact Aaron Giles

 

Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.

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