TaxConnections

 
 

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Archive for Monika Miles

What To Know About Intercompany Service Receipts In Washington

What To Know About Intercompany Service Receipts In Washington

Washington state is known for its evergreen forests, beautiful mountains and for being the home of Starbucks. That said, for remote retailers, it should also be known as a state with several unique tax situations, one of which is its treatment of intercompany service receipts.

In general, the Washington Department of Revenue (DOR) takes a fairly aggressive stance in regards to the taxation of remote companies providing services to customers within the state.

However, companies have several avenues that could provide potential relief for these tax burdens.

Taxation Of Services Within Washington State

Read more

West Virginia Tax And Business Climate

West Virginia Tax And Business Climate

Known for its mountainous landscape and rolling hills, this month we travel north to West Virginia. The state has a rich history and is embedded in the Appalachian Mountains.

West Virginia is known for a wide range of outdoor recreational activities, such as skiing, whitewater rafting, fishing, hiking, backpacking, mountain biking and hunting. The state offers many golf courses as well.

It is also one of the most densely Karstic areas in the world, making it a choice area for recreational caving and scientific research. Karstic topography is a landscape formed from the dissolution of soluble rocks such as limestone, dolomite, and gypsum. It is characterized by underground drainage systems with sinkholes and caves. These underground hydrology systems contribute to much of the state’s cool trout waters.

Read more

How The Paycheck Protection Plan Is Impacting Businesses One Year Later

How The Paycheck Protection Plan Is Impacting Businesses One Year Later

For companies in many industries, staying in business throughout 2020 was a struggle. It meant constantly adapting to new challenges, working harder than ever to just stay afloat and strategically taking advantage of state and federal relief efforts, like the Paycheck Protection Program (PPP), wherever possible.

As a small business, we felt those struggles ourselves, and even as life starts to go back to ‘normal,’ we understand that the financial concerns of the last year are not going to just magically disappear.

Depending on what relief was utilized, many business owners are now considering their best strategy for repayment. In this blog, we’ll discuss your options and help you decide what’s best for your company.

A Recap On The PPP

Read more

Wayfair Three Years Later- What Has Changed?

Wayfair Three Years Later- What Has Changed?

It’s hard to believe that it has been three years since the landmark decision in the Supreme Court Case of South Dakota v. Wayfair  (2018) that changed the sales tax landscape. The high court’s decision was that South Dakota’s economic nexus law was constitutional and that the state could require companies who met certain sales thresholds to collect and remit sales tax on sales to South Dakota customers, even if the company had no physical presence in the state. The decision effectively added another means that states can create nexus in a state for sales tax purposes.

The Supreme Court’s ruling did not automatically make this the law of the land for all 50 states. It was a South Dakota case, so the ruling just applied to South Dakota. However, since then, states have been jumping on the economic nexus bandwagon and enacting laws similar to those of South Dakota. States have long been searching for new ways to bring revenue into their state and the Wayfair case gave them a long-awaited opportunity to do so.

Read more

Georgia Tax And Business Climate

Georgia Tax And Business Climate

The last of the original thirteen colonies is Georgia, the Peach State. Georgia is also known as the Empire State of the South. The state’s terrain spans coastal beaches, farmland and mountains.

There are also many points of interest that attract visitors to Georgia. In Atlanta, there are the World of Coca-Cola and the Georgia Aquarium. Stone Mountain, just north of Atlanta, is Georgia’s most popular attraction, receiving over 4 million visitors per year. Callaway Gardens, in western Georgia, is a family resort. The area is also popular with golfers.

The Golden Isles are a string of barrier islands off the Atlantic Coast of Georgia near Brunswick that include beaches, golf courses and the Cumberland Island National Seashore.

Read more

Wayfair Decision Is Complicating More Than Just Online Sales Tax

Wayfair Laws

It’s been nearly three years, but the Wayfair decision is still impacting businesses in unexpected ways.

For an in-depth overview of South Dakota v. Wayfair (2018) and its impact on states and retailers alike, please click here.

As a result of the decision in that case, almost every state with a general sales tax has implemented what many in the business refer to as ‘Wayfair laws.’ More specifically, economic nexus and marketplace facilitation legislation.

The speed at which these laws were implemented by states eager for additional sources of tax revenue meant that interactions between Wayfair legislation and other laws may not have been fully considered or understood at the time. Even now, as the last holdout states finally join the rest by implementing their own Wayfair laws, businesses are still feeling the effects in areas other than just online sales tax.

Read more

Missouri – The Last State To Enact Economic Nexus Legislation

Missouri- The Last State To Enact Economic Nexus Legislation

The 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair has changed the dynamic of sales tax in a number of ways. Where almost every state in the union has already enacted economic nexus legislation for remote sellers, states like Florida and Missouri have been late to the party to impose sales tax with respect to seller’s economic nexus in the state.  On April 19, 2021, Florida lawmakers finally joined the other 43 states to impose an economic nexus threshold, and now Missouri is also set to finally pass a similar law.

The Missouri legislature approved  S.B. 153 in a 102-42 vote, following some modifications in the bill. Missouri Rep. John Eggleston said, “We have to be fair to out-of-state businesses because that’s what the Supreme Court said, and we want to help our in-state businesses to better compete.” He also added, “After a lot of negotiation, I think we’re at a pretty good spot.”

Read more

What To Know About The Taxability Of SaaS In 18 Key States

What To Know About The Taxability Of SaaS In 18 Key States

Software-as-a-service (SaaS) products are a sticky subject within tax law, even more so once economic nexus gets thrown into the mix.
Most of the complication is due to the different SaaS definitions state to state, in addition to little uniformity when it comes to SaaS tax legislation. Additionally, while SaaS has grown in popularity as a delivery method over the last handful of years, legislation has been slow to catch up. However, over 20 states now assess sales tax on the SaaS revenue stream, but for different reasons.

In this article we’ll discuss the taxability of SaaS in 18 key states.

1. Taxability of SaaS in California

Economic Nexus Provisions: Yes

Read more

Do Wayfair Laws Need Reform To Reduce The Burden On Retailers?

Wayfair Laws

If you’re at all involved in the tax world, whether on the accounting side or as a business owner, you should be well aware of the 2018 Wayfair ruling at this point.

For an in-depth overview of South Dakota v. Wayfair (2018) and its impact on states and re tailers alike, please click here.

As a result of the Supreme Court’s decision in that case, almost every state with a general sales tax has implemented what many in the business refer to as ‘Wayfair Laws.’ More specifically, the ruling opened the door for economic nexus and marketplace facilitation legislation to be implemented across the country.

Now, nearly three years after the decision was rendered , the effects of these Wayfair laws are coming to a head and many groups are calling for reform to reduce the burden on online retailers.

Where The Complexity Comes From

Read more

What Increased Ecommerce Means For Online Retailers

What Increased Ecommerce Means For Online Retailers

While the world has been dealing with the impacts of the COVID-19 pandemic, online retailers have been dealing with an additional issue: the tax implications of increased ecommerce.

As a result of stay-at-home orders, social distancing and health concerns, consumers have turned to online retailers for their shopping. Many of these retailers have seen huge spikes in business, which proved to be a well-timed life preserver as the economic effects of the pandemic took hold last year.

However, in the long term, this jump in sales has created additional tax liabilities and headaches for small retailers that were unprepared to handle it.

Read more

Know About Recent Tax Changes In Florida, Maryland and Oregon

Know About Recent Tax Changes In Florida, Maryland and Oregon

The past few years have seen incredible and widespread changes to online sales tax legislation across the country. A large number of these changes stem from the 2018 Wayfair decision, which prompted many states to adopt economic nexus and marketplace facilitation legislation.

Now that almost every state with a general sales tax has implemented Wayfair-related legislation, you might expect things to calm down a bit.

You would be wrong. As a result of evolving attitudes regarding digital services, such as video streaming, and the continued growth of e-commerce, many states are reevaluating, changing or implementing new legislation to govern these digital transactions.

Read more

Important Updates About Wayfair Legislation In 2021

Important Updates About Wayfair Legislation In 2021

After the landmark decision in South Dakota v. Wayfair (2018), states across the nation rushed to implement Wayfair-related legislation. For most states, this meant implementing economic nexus and/or marketplace facilitation laws to better capitalize on the sales tax opportunities presented by online retail.

While it’s taken some states longer than others, 2021 could be the year that every state with a general sales tax finally implements Wayfair-related legislation.

It’s also important to note that states that already have Wayfair-related legislation are still making tweaks and refining their laws to best suit their economic needs.

Read more