TaxConnections

 
 

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Archive for Monika Miles

What You Need To Know About Virtual Currency

What You Need To Know About Virtual Currency

You’re probably familiar with the common question, “Cash or card?” However, over the last decade, a newcomer has entered the race. Virtual currencies, and its subset “cryptocurrencies,” which use cryptography to validate and secure transactions, have exploded onto the scene, offering a brand-new avenue for commerce.

However, similar to the lack of consistency among economic nexus and marketplace facilitator laws, legislation concerning virtual currencies also varies wildly state to state.

A Brief History of Virtual Currency

While most people have at least heard of them at this point, there is still a great deal of confusion regarding virtual currencies, how they work and what exactly they are.

Bitcoin is the most popular form of virtual currency, first introduced in 2009 and valued for the first time in 2010.

Read more

What You Need To Know About Important Illinois Tax Updates

What You Need To Know About Important Illinois Tax Updates

As we begin 2021 and approach the legislative season, it’s clear there will be numerous changes that will impact tax compliance. This is spurred on by both the pandemic’s economic fallout and changes necessitated by our increasingly digital economy.

In this article, we examine several updates regarding tax compliance in Illinois and what they mean for any retailer doing business in the state.

Marketplace Facilitation in Illinois

After the 2018 Wayfair decision, Illinois enacted marketplace facilitation legislation, following in the footsteps of many other states. However, unlike other states, this legislation is creating friction with other pieces of tax law specific to Illinois.

Read more

Will Massachusetts Speed Up Sales Tax Remittance?

Will Massachusetts Speed Up Sales Tax Remittance?

The pandemic has spurred on a number of sales tax changes over the last 10 months, many of them in regards to economic nexus or other Wayfair-related legislation. However, in Massachusetts, lawmakers are looking at sales tax remittance instead. More specifically, speeding up the remittance process.

This doesn’t come as a huge surprise as Massachusetts Governor Charlie Baker has introduced a number of similar plans since taking office in 2015, but this is the first one that may be approved.

What Is The Current Sales Tax Remittance Process?

Read more

Tax And Business Climate In The State Of Maine

Tax And Business Climate In The State Of Maine

This month we travel up the eastern seaboard to the Pine Tree State of Maine. Maine is the northeastern most state in the contiguous United States. It is known for its jagged rocky coastline, low, rolling mountains, heavily forested interior, picturesque waterways, and its seafood cuisine, especially clams and lobster.

Maine was part of the Commonwealth of Massachusetts until 1820 when it voted to secede from Massachusetts to become a separate state. There is no definitive explanation for the origin of the name “Maine,” but the most likely explanation is that early settlers named it after the former province of Maine in France.

Carved by glaciers, Somes sound in Maine is considered to be the only fjord on the eastern seaboard and reaches depths of 175 feet. The extreme depth and deep drop-off allow large ships to navigate almost the entire length of the sound. These features also have made it attractive for boat builders, such as the prestigious Hinkley Yachts.

Business Climate

Read more

What To Know About Certain Tax Obligations In California

What To Know About Certain Tax Obligations In California

Are you a remote seller making sales into California through a marketplace seller like Amazon? Do you have inventory within the state?

What about remote workers? Do you have any employees that are now working from home across state lines?

If you answered yes to any of the above questions, I encourage you to keep reading!

Income Tax Obligations From Inventory

California’s Franchise Tax Board (FTB) recently sent out notices to online merchants demanding income tax returns, part of a larger effort to collect taxes from remote sellers with inventory within the state. While in-state businesses have received similar notices for a number of years, the recent focus on out-of-state retailers may trace back to the 2018 Wayfair decision and the implementation, and enforcement of, Wayfair-related legislation within California.

Read more

When Is Distance Learning Subject To Taxation? It depends.

When Is Distance Learning Subject To Taxation? It depends.

Just like the many employees who have been forced to adapt to remote working, students across the nation have transitioned to distance learning as a result of the pandemic. While universities have previously offered online options for a minority of classes, the pandemic has rapidly pushed the majority of instruction online.

As is the case for companies with remote workforces, universities may now be facing changed and possibly increased tax obligations. However, rules on the taxation of online schooling vary wildly by state, and if students are now located in a different state than their school because of displacement by the pandemic, it gets even more complicated.

The Role of Economic Nexus

For a breakdown of economic nexus and the impact it has had over the last two years,  please click here.

The 2018 Wayfair decision paved the way for states to implement economic nexus legislation. Today, over 40 states have implemented some form of economic nexus. In a nutshell, this allows states to require remote sellers to collect and remit sales taxes based on the seller’s economic presence alone, typically measured by way of sales thresholds or the number of sales transactions made per year.

For universities, online education and other training courses offered by these institutions may or may not fall under the purview of economic nexus, depending on the state.

Read more

Business And Tax Climate In Mississippi

Business And Tax Climate In Mississippi

This month we travel to the land of Dixie, the southern state of Mississippi. The state is the 32nd largest and 34th most populous of the 50 states. The state is heavily forested with over half of the state’s area covered by wild trees including mostly pine, as well as cottonwood, elm, hickory, oak, pecan, sweetgum and tupelo.

The hills region in the northeast part of the state is covered in natural wooded forests and the peaceful waters of Pickwick Lake. The green pine woodlands of east-central Mississippi provide endless outdoor recreational activities and world-class golf. In addition to lush forests, the Pines region is filled with historical sites and authentic Southern restaurants.

Read more

How Will The Pandemic Impact Sales Taxes In The Long Run?

How Will The Pandemic Impact Sales Taxes In The Long Run?

As states across the nation continue to struggle with immediate concerns related to the pandemic, lawmakers are turning their sights to the future and looking for ways to make up the massive budget shortfalls brought on by COVID-19.

One potential avenue is sales tax. There are a variety of ways that legislators could change or implement sales taxes to increase revenue. In the following article, we’ll examine these and other long-term changes that we may see over the coming months and years as a result of the pandemic.

Economic Nexus Legislation

For a breakdown of economic nexus and the impact it has had over the last two years,  please click here.

An ongoing theme of the pandemic has found states with robust economic nexus legislation faring (at least slightly) better than those without. While over 40 states have now enacted economic nexus laws, there are still two states with a general sales tax that have yet to do so: Florida and Missouri.

Read more

California’s Partial Manufacturing And R&D Exemption

California’s Partial Manufacturing And R&D Exemption

The California Manufacturing Partial Sales and Use Tax Exemption allows manufacturers and certain research and developers to exempt a portion of sales and use tax. In general, this partial exemption allows a qualified person, who purchases qualified tangible personal property and used that property in a qualifying manner, to purchase the property at a reduced tax rate, according to the CDTFA. While it’s been around for a few years, in 2017, California amended the exemption to expand the partial sales and use tax exemption for purchases of certain tangible personal property used in manufacturing or research and development activities.

How to Qualify for the Exemption

In order to be eligible for the exemption, you must meet all three of the following conditions:

Read more

What You Need To Know About Long-Term Impacts Of The Pandemic On Online Retailers

What You Need To Know About Long-Term Impacts Of The Pandemic On Online Retailers

In the last 10 months, much of daily life has been turned upside down. Large events have been canceled, schools have switched to distance learning and many workplaces are still depending on remote setups for employees.

One of the many other consequences of the pandemic is the temporary closure of in-person retailers. Between this and understandable safety concerns, many consumers have turned to online shopping as their default.

This has offered many retailers the lifeline they needed to stay afloat during the pandemic, but it’s also creating problems for those that were unprepared for the complex tax burdens associated with online retail.

Read more

Business And Tax Climate: Focus on New Mexico

Business And Tax Climate: Focus on New Mexico

New Mexico, nicknamed as “The Land of Enchantment,” is located in the Southwest part of the United States. The state was admitted to the union as the 47th state on January 6, 1912. It is one of the mountain states and shares the Four corners region with Utah, Colorado, and Arizona.

The dramatic climate, a sharp diversity of people, and famous landscapes are some of the things that make New Mexico a unique state. The state’s climate is generally semiarid to arid, though portions of the state have a continental and alpine climate, and its terrain is mostly covered by mountains, high plains and desert. The state is home to prospering art communities, colleges, and historic sites that inspired many influential early artists.

Read more

How Colorado Is Easing The Tax Burden For Retailers

How Colorado Is Easing The Tax Burden For Retailers

Over the last two years, retailers across the U.S. have needed to adjust to the widespread implementation of economic nexus. As of today, only two states with a general sales tax have yet to implement it. However, a handful of states add an additional layer of complexity. These states, known as home rule states, create a tax burden that can be overwhelming. Colorado is included in this number.

However, much to the relief of retailers, Colorado is now looking to simplify local sales tax collection for remote sellers within the state.

What Makes Colorado So Complex?

Read more