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Archive for Sales/Use Tax

New Jersey Sales And Use Tax Exemptions For Manufacturers

Aaron Giles, Norcross, Georgia, USA, Tax Advisor, TaxConnections

The New Jersey sales and use tax exemption for manufacturers enables machinery, apparatuses, or equipment to be purchased without paying New Jersey sales and use tax.  New Jersey Revenue Statute 54:32B-8.13(a) further clarifies the sales and use tax exemption by stating that the machinery, apparatuses or equipment must be for use or consumption directly and primarily in the production of tangible personal property by manufacturers, processors, assemblers or refineries. This New Jersey sales and use tax exemption for manufacturers applies to any such machinery, apparatus, or equipment regardless of whether the item is purchased, rented or leased. Read more

South Carolina to Amazon: Collect Sales Tax Now!

Monika Miles, Tax Advisor

States are continuing to come up with ways to collect sales tax from online sellers (specifically Amazon’s third-party sellers). South Carolina recently filed a motion in court to force Amazon to collect these taxes and fees on behalf of its third-party sellers.

As it is now, Amazon collects sales tax on items purchased directly from them, but the retail giant does not collect it on sales made on the site by a third party. South Carolina is claiming it could lose more than $500 million in sales tax if Amazon doesn’t begin collecting them now, and is asking the court to require the retailer to charge sales tax and put it into a trust or escrow-type account until the case is settled. Read more

California Sales Tax Exemption for Manufacturing and R&D Machinery and Equipment

Aaron Giles, Tax Advisor

Beginning July 1, 2014 manufacturers in California are eligible for a partial exemption from state sales and use tax. This California sales tax exemption for manufacturing and research and development machinery and equipment reduces the state sales tax by 4.1875% from July 1, 2014 through December 31, 2016. From January 1, 2017 through June 30, 2022 the state sales tax rate is reduced by 3.9375%. In order to qualify for this exemption the “qualified tangible personal property” must be purchased or leased by a “qualified person” and used in one of four ways:

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South Carolina Tax Exemption For Drugs Paid Via Medicare

South Carolina sales tax law provides an exemption for drugs dispensed to Medicare Part A patients residing in nursing homes. Facilities that were clearly organized exclusively as “nursing homes” have long claimed this exemption, however, the South Carolina Department of Revenue had failed to grant or extend this exemption to those facilities with more complex operations. In reality, many facilities have different segments or divisions that interact with patients in varied ways, including providing skilled nursing services. Many facilities organized in this manner have a portion of their total bed count dedicated to providing these skilled nursing services. As a result of arguments presented by Agile Consulting Group in mid-2017, facilities organized in this multifaceted manner are now able to reap the benefit provided under this South Carolina sales tax exemption. Read more

Shopping Trends And Taxes

I like to look at trends because they are interesting and many have tax implications. Trends may indicate a need to update or modernize tax rules or systems. I’m a bit behind on blogging on this, but several weeks ago, there was an article in Fortune – Phil Wahba, “Major Wall Street Firm Expects 25% of U.S. Malls to Close by 2022,” 5/31/17. Reasons included bankruptcies and continuing growth in retail e-commerce sales. Read more

An Interesting Look At Nevada And Online Sales Tax

Monika Miles

If you’ve been following along with our series about various states’ approach to online sales tax, you can see how multi-state tax issues can get confusing for business owners quickly.

At this point we’ve taken a look at the how Colorado, Alabama, Washington, Texas and Arizona establish nexus, which determines eligibility for state sales tax; today we review Nevada.

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Georgia Sales And Use Tax Exemptions For Manufacturing

There are many Georgia sales and use tax exemptions available to manufacturers operating within the state. In recent years, Georgia’s sales and use tax exemptions for manufacturers have broadened through the integrated plant theory with respect to manufacturing machinery and equipment. The integrated plant theory as it relates to Georgia sales and use tax exemptions has evolved in stages beginning in 2009.

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Florida Prescription-Required Single-Use Hospital Exemption

The state of Florida provides several sales & use tax exemptions for medical purchases made by hospitals and health care facilities. One exemption that provides an opportunity for sales & use tax savings applies to purchases that are required to be issued under a physician’s prescription and are only used for one patient. This is often referred to as the prescription-required single-use exemption for hospitals, surgical centers or other healthcare establishments.

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Medicines Exempt From Alabama Sales And Use Tax

Aaron Giles

The state of Alabama is relatively limited when it comes to providing sales and use tax exemptions for medical purchases made by hospitals and health care facilities. However, there is an Alabama sales and use tax exemption available for medicines and other substances consumed by the body.

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3 Vital Multi-State Tax Facts For SaaS Companies

Monika Miles

Last week, we discussed various multi-state tax issues software companies often overlook. This week we look at another industry that often misses sales and use tax ramifications on their sales: Software-as-a-Service (SaaS). Many think that because it’s not a tangible product or even clearly defined as a service (at least according to traditional definitions), these companies don’t need to worry about state sales tax. Keep reading to find out why this could be a costly mistake.

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Sales Tax Policy Outlook For 2017

Annette Nellen

Sales tax law changes and discussions in 2017 are likely to look a lot like those of 2016, with one possible exception.

The repeating discussions and activities will include:

1) Expanding the sales tax base to include more services and digital goods.

2) Congressional hearings on the Marketplace Fairness Act without enactment of legislation.

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Sales Tax Exposure Revisited

Monika Miles

In our practice, we see many new clients who have sales tax exposure issues. And we, of course, are happy to help them identify and then mitigate that exposure. As we discussed in our blog last month, “Sales Tax Non-Compliance: What’s Your Exposure“, sales tax exposure can add up quickly. Sales tax is a gross tax and if not properly collected from the buyers at the time of the sale, it can come back to haunt the seller later.

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