Sales/Use Tax | TaxConnections

30 Sep 2020

State Tax Issues Associated With Troubled Companies: Part Two- Sales and Use Taxes

Sales taxes are often overlooked when a company is experiencing an economic crisis. Given that some jurisdictions can have rates over 10%, this can be very costly at a time when a company can least afford this expense. With the exception of bankruptcy situations, there are no “special” rules with regard to sales or use taxes when a company is experiencing financial difficulties. So, how can a troubled company minimize their sales and use tax obligations?

The following highlights several areas that should be reviewed for possible opportunities.

Written by Monika Miles | Posted in Sales/Use Tax

05 Feb 2020

3 Important Sales Tax Predictions To Watch For In 2020

The world of sales tax has changed a lot in the past year. Following the Supreme Court’s Wayfair decision, 2019 was the year most states began requiring businesses to collect and remit sales tax, and then began making marketplace facilitators (such as Amazon or eBay) responsible for collecting and remitting the taxes on sales that came through their marketplaces.

What changes can we expect to see this year? Keep reading for three predictions we believe are just around the corner.

3 Sales Tax Predictions For 2020
1. Smaller Retailers Will Depend On Marketplaces
As Greg Chapman, SVP of business development at Avalara explains, “We should expect traditional ecommerce providers to start working closely with marketplaces or offering more ‘Amazon-like’ experiences to stay relevant.”

The increase in online shopping coupled with confusing economic nexus laws make it even more appealing for very small businesses up to mid-sized companies to work with online marketplaces. In addition to facilitating sales in a process that’s more streamlined for customers, a lot of states have placed the burden of sales tax collection on the marketplace rather than the seller. This can greatly reduce the cost and risk of doing business online for companies struggling to navigate tricky taxability questions.
Read More

Written by Monika Miles | Posted in Sales/Use Tax • Wayfair Decision

15 Oct 2019

Utah And Vermont State Sales And Use Tax

The state of Utah levies a 4.65% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 1.3% and 3.4%. The range of total sales tax rates within the state of Utah is between 5.9% and 8.1%.

Use tax is also collected on the consumption, use or storage of goods in Utah 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 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 reported to the state of Utah on or before the last day of February.

Written by Aaron Giles | Posted in Sales/Use Tax • Utah • Vermont

27 Aug 2019

Maine, Maryland And Massachusetts State Sales And Use Tax

Aaron Giles States Sales And Use Tax- Maryland, Maine, Massachusetts

Maine State Sales And Use Tax

The state of Maine increased its state sales tax rate to 5.5% on Oct. 1, 2013. Taxes are levied on the retail sale, lease or rental of most goods. There are no local sales taxes in the state of Maine.

Use tax is due on all purchases brought into the state of Maine, unless specifically exempted. Use tax is due at the same rates as sales tax. Returns are to be filed on or before the 15th 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 Maine on or before February 15th.

For more information on Maine sales tax exemptions please visit the sites shown below.

Maine State Department of Revenue
Maine State Sales Tax Forms
Maine State Voluntary Disclosure Program

Maryland State Sales And Use Tax

The state of Maryland levies a 6% state sales tax rate on the retail sale, lease or rental of most goods. There are no local sales taxes in the state of Maryland.

Use tax is due on all purchases brought into the state of Maryland, unless specifically exempted. Use tax is due at the same rate 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 Maryland on or before February 20th.

For more information on Maryland sales tax exemptions please visit the sites shown below.

Maryland State Comptroller
Maryland Sales And Use Tax Forms
Maryland State Business Tax Credits

Massachusetts State Sales And Use Tax

The state of Massachusetts levies a 6.25% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Massachusetts.

Use tax is also collected on the consumption, use or storage of goods in Massachusetts 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 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 Massachusetts on or before February 20th.

For more information on Massachusetts sales tax exemptions please visit the sites shown below.

Massachusetts State Sales And Use Tax Guide

(This is part of the 50 States Sales And Use Tax Series)

Have a question? Contact Aaron Giles

Written by Aaron Giles | Posted in Maine • Maryland • Massachusetts • Sales/Use Tax

10 Jul 2019

Tax Climate In Ohio – Aggressive On Technology Products For Sales Tax Purposes

Ohio is a Midwestern state in the Great Lakes Region of the United States. It is the 34^th largest state by area, the seventh most populous and the 10^th most densely populated. Ohio is historically known as the “Buckeye State” after its Ohio Buckeye trees and Ohioans are also known as “Buckeyes.”

Much of Ohio features glaciated till plains, with an exceptionally flat area in the northwest being known as the Great Black Swamp. This glaciated region in the northwest and central part state is bordered to the east and southeast by a belt known as the glaciated Allegheny Plateau, and then the unglaciated Allegheny Plateau. Most of Ohio is of low relief, but the unglaciated Allegheny Plateau features rugged hills and forests.

Business Climate

Ohio’s geographic location has proven to be an asset for economic growth and expansion because Ohio links the Northeast to the Midwest, much cargo and business traffic passes through its borders along its well-developed highways. Its border with Lake Erie has numerous cargo ports.

Written by Monika Miles | Posted in Ohio • Sales/Use Tax • State Tax

24 May 2018

Determination Of Property’s Taxability For Michigan Sales And Use Tax

In Michigan sales and use tax law determining whether an item of tangible personal property remains tangible personal property or becomes a fixture affixed to real estate can significantly affect the taxability of the item in question. This determination may impact whether the taxpayer is considered a retailer or a contractor.

There are also several exemptions in Michigan sales and use tax law for purchases of tangible personal property that do not apply if the item is instead a fixture. The Michigan sales and use tax exemptions for both the agricultural industry and the industrial processing or manufacturing industry include such language.

Written by Aaron Giles | Posted in Sales And Use Tax • Sales And Use Tax Manufacturing Exemption • Sales/Use Tax

07 Mar 2018

New Jersey Sales And Use Tax Exemptions For Manufacturers

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

Written by Aaron Giles | Posted in New Jersey Tax • Sales/Use Tax • TaxConnections

12 Dec 2017

South Carolina to Amazon: Collect Sales Tax Now!

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

Written by Monika Miles | Posted in Sales/Use Tax • TaxConnections

14 Nov 2017

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

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:

Written by Aaron Giles | Posted in Sales And Use Tax Manufacturing Exemption • Sales/Use Tax • United States

23 Aug 2017

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

Written by Aaron Giles | Posted in Sales/Use Tax

18 Aug 2017

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

Written by Annette Nellen | Posted in Sales/Use Tax

07 Jun 2017

An Interesting Look At Nevada And Online Sales Tax

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.