Aaron Giles | TaxConnections

15 Feb 2022

Michigan Sales And Use Tax Audits: Have You Been Selected?

One of our team members sat in on the Michigan Department of Treasury’s MI sales & use tax audit webinar to provide this short summary for your reference. Here are some tips to make your audit process easier and less painful!

Understand Your Basic Responsibilities

If you’ve already been selected for an audit and are familiar with your tax-collection responsibilities, skip ahead. For everyone else, it is important to know that sales & use tax collection is your obligation. When you don’t collect sales & use tax the liability falls on you. Even though customers commonly pay sales taxes, the selling business is the one responsible for adequately collecting and remitting sales taxes. (If you need help with sales tax compliance, reach out to one of our tax experts here.)

Fortunately, MI is an easier state to deal with sales and use tax. They only have the 6% rate for the entire state with no local rates, and their online platform MTO (Michigan Tax Online) is helpful and can make the process much easier! (Read about the benefits of MTO and refresh on general MI sales and use tax tips here.)

Why Did I Get Picked For An Audit?

Written by Aaron Giles | Posted in Audit • Michigan Sales And Use Tax

01 Feb 2022

Georgia Sales Tax Compliance

If you’re planning on filing a sales and use tax return in Georgia, you’ll need to know the following information:

– Total sales in Georgia

– Amount of sales exempt from tax

– Amount of sales tax collected

– Amount of taxable sales

Georgia sales tax compliance has a state-level sales tax rate of 4%. However, in Atlanta and Clayton County, the Motor Vehicle taxes 1% less than the normal rate. The sale of food (which includes groceries, food ingredients, unprepared food, etc.) is tax exempt at the state level. Although you don’t have to pay taxes on food at the state level, there are still taxes applied to the sale of food at Georgia’s local level.

Georgia Sales Tax

Written by Aaron Giles | Posted in Georgia Sales Tax Compliance

28 Jan 2022

Sales Tax Recovery Can Help Cash Flow

Sales tax recovery reviews, sometimes known as sales tax reverse audits are a great way to generate cash flow at any time, but the disruption Covid-19 has caused worldwide has forced many businesses to reevaluate. Will reopening generate the volume of sales businesses had pre-Covid-19? Will our economy tip into a recession? Will businesses be forced to trim costs or even payroll to remain profitable? Businesses are facing these and many other pressing questions over the coming months. One thing is certain, businesses have found ways to adapt and do more with less over the past 10+ weeks. Maybe it is time to reconsider recovering overpaid sales taxes.

Many of you are familiar with sales tax recovery reviews. Quite a few of you have enjoyed success in prior sales tax recovery reviews. We view sales tax recovery reviews as something akin to a doctor’s checkup. Maybe they don’t need to occur on an annual basis (who are we kidding, we all know we’ve missed one from time-to-time), but every few years it is imperative to go in for that checkup to make sure everything is still functioning properly and to address any concerns we have. That’s the same opportunity sales tax recovery reviews offer your business as it relates to sales tax.

Written by Aaron Giles | Posted in Sales Tax Compliance

27 Jan 2022

Florida Sales Tax Compliance Rates And Exceptions

Florida’s tax rates are mostly consistent across the board, but there are a couple of exceptions that are useful for one to keep in mind while filing taxes. Florida has a state-level tax rate of 6%, but when it comes to commercial rentals, the tax rate is .5% less. This makes the state-level tax rate on commercial rentals 5.5%. Florida sales tax compliance also imposes a 4% tax on amusement machines and a 6.95% tax on electricity.

Florida Sales Tax

There are four different types of filing frequencies for tax returns in Florida: monthly, quarterly, semi-annually, and annually. Make sure to mark your calendar for the 19^th of each month because that is the last day you can file your tax returns in Florida. If the 19th falls on a weekend or on a business holiday, then the deadline is changed to the first applicable business day before the 19^th. This is different than how most states deal with their return due dates. Usually, states will push the due date back to after the weekend or holiday. Keep that in mind, so you do not end up missing the due date because you thought you had a little bit of extra time. Please note that all payments must be made before 5pm EST of the due date to be considered on time.

Written by Aaron Giles | Posted in Sales Tax Compliance

25 Jan 2022

Kentucky Sales Tax Compliance

Kentucky sales tax compliance is fairly simple and straight-forward in comparison to other states’ tax laws. Kentucky has a state-level sales tax rate of 6%, and the state does not offer reduced rates. Due to this, businesses can expect to collect and remit a 6% sales tax rate on all taxable sales they make.

Kentucky Sales Tax

There are three filing frequencies at which taxpayers file their tax returns which will be determined by the Kentucky Department of Revenue at the time of registration. These three frequencies are monthly, quarterly, and annually. Kentucky sales tax compliance requires all taxpayers to file by the 20^th of the following reporting period, no matter their filing frequency. If the return due date falls on a weekend or national holiday, then the correct due date will get pushed back to the next business day.

Written by Aaron Giles | Posted in Kentucky Sales Tax Compliance

20 Jan 2022

What Are Your Responsibilities For A Tennessee Sales Tax Return?

https://www.taxconnections.com/Aaron-Giles/12273638/United-States/Georgia/Norcross/profilepage

Businesses that qualify for Nexus in Tennessee collect and remit sales and use tax on the sales, lease, or rental of tangible personal property (an item you can touch, smell, or taste), recreational activities, and digital products. Digital products are subject to a special local rate unless the products are also available as tangible product. For example, an eBook version of a book in print. In cases like that, the digital products are taxed at the normal rate.

While most services are exempt from tax in Tennessee, some have specific laws making them taxable. Taxable services include lodging services and rooms, short-term rental space for making sales, cleaning/repairing/installation of tangible personal property including animal bathing or computer software installation, parking or storage of motor vehicles, telecommunication & ancillary telecommunication services, and enriching of uranium materials.

Written by Aaron Giles | Posted in Tennessee Sales Tax Return

29 Jul 2021

Washington State Sales Tax Exemptions

The state of Washington levies a 6.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 0.5% and 3.3%. The range of total sales tax rates within the state of Washington is between 7% and 9.9%. Since July 1, 2008, the state of Washington has changed the way in which local sales taxes are to be collected. The local sales tax will now be based on the destination rate of the delivery.

Use tax is also collected on the consumption, use or storage of goods in Washington if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th 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 Washington on or before the 25th day of February.

Have a question? Contact Aaron Giles, Agile Consulting Group

Written by Aaron Giles | Posted in Sales Tax Exemption • Washington State

24 Feb 2021

United States: New Jersey Sales Tax Exemptions

The sales tax rate was reduced from 6.85% to 6.625% rate. New Jersey applies sales tax on the retail sale, lease or rental of most goods and some services. There are no additional local sales taxes in the state of New Jersey. More information is provided below about reduced sales tax rates and major exemptions.

In Salem County, the sales tax rate is 3.5% and the 7% state sales tax rate does not apply. This 3.5% Salem County rate only applies to retail sales of tangible personal property made in person at a place of business located within Salem County.

Written by Aaron Giles | Posted in TaxConnections

16 Feb 2021

Access Sales Tax Exemptions For 50 States

Sales Tax Exemption Information For Your State

TaxConnections Member Aaron Giles of Agile Consulting has compiled state-specific research regarding the sales and use tax exemptions available in each state. You’ll also find helpful links to sales and use tax related content for each state revenue agency.

Sales Tax By State

Click on any state in the map below or from the column to the left of the map to see all relevant sales & use tax information available for that state.

Click Here To Access U.S. Map And Choose State

Written by Aaron Giles | Posted in Sales Tax Exemptions By State

02 Feb 2021

Arizona Transaction Privilege Tax (Sales Tax) Exemption For Manufacturing

Arizona allows manufacturers in the state to purchase machinery and equipment directly used in the manufacturing process “transaction privilege tax” exempt.

Arizona Sales Tax Exemption For Manufacturing

While Arizona does not technically collect sales tax, they do collect transaction privilege tax which is treated in the same manner as most states treat sales tax. Transaction privilege tax is the tax levied by the state of Arizona on a vendor for the privilege of conducting business in the state.

The main difference in transaction privilege tax and traditional sales tax is that the burden lies on the seller versus the purchaser. Because of this many of the transaction privilege tax laws have a corresponding use tax law.

Written by Aaron Giles | Posted in Arizona Sales Tax Exemption • Transaction Privilege Tax

28 Jan 2021

Oklahoma Sales Tax Exemption For Software

The Oklahoma sales tax exemption for software allows businesses that utilize software at their Oklahoma-based locations to claim an exemption on software purchases that meet certain criteria. The experienced, detail-oriented and knowledgeable sales tax consulting team at Agile Consulting Group is uniquely qualified to help your business leverage this sales tax exemption to improve your cash flow.

According to Section 1354(A)(9) of Title 68 of the Oklahoma Statutes, “Computer hardware, software, coding sheets, cards, magnetic tapes or other media on which prewritten programs have been coded, punched, or otherwise recorded, including the gross receipts from the licensing of software programs” are subject to sales tax. Since prewritten computer software is subject to sales tax in Oklahoma, it is important to understand how the Oklahoma tax code defines this term. Per Section 1352(20) of Title 68 of the Oklahoma Statutes, prewritten computer software means, “‘computer software’, including prewritten upgrades, which is not designed and developed by the author or other creator to the specifications of a specific purchaser.” Prewritten computer software also includes the following:

Written by Aaron Giles | Posted in Oklahoma Sales Tax Exemption

09 Sep 2020

Arizona Transaction Privilege Tax (Sales Tax) Exemption For Manufacturing

Arizona allows manufacturers in the state to purchase machinery and equipment directly used in the manufacturing process “transaction privilege tax” exempt. While Arizona does not technically collect sales tax, they do collect transaction privilege tax which is treated in the same manner as most states treat sales tax. Transaction privilege tax is the tax levied by the state of Arizona on a vendor for the privilege of conducting business in the state. The main difference in transaction privilege tax and traditional sales tax is that the burden lies on the seller versus the purchaser. Because of this many of the transaction privilege tax laws have a corresponding use tax law. The Arizona transaction privilege tax exemption for manufacturing extends to manufacturing machinery and equipment used directly in processing, fabrication, job printing, refining, metal working, mining, electrical power transmitting, oil and gas extraction, and research and development [Ariz. Rev. Stat. Ann. §42-5061(B)(1)]. Directly used in manufacturing means the item purchased must be involved in the direct production of the product.

Written by Aaron Giles | Posted in Arizona Transaction Privilege Tax