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.
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.
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.
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.
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.
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.
An entrepreneur’s dream is to start her own business and witness it grow. First, she wants to see it grow locally. And then, she may see it grow statewide. Whether the company is a small retail operation or a cutting edge technology company, the next step up may be overwhelming as the business begins to operate across state lines. At that point, there are many strategic and tactical issues including hiring employees or contractors operating in other states, or the maintenance of inventory.
Have you been keeping up with the online sales tax debate? Are you curious which pieces of internet sales tax legislation are still circulating in Congress? Here’s a quick summary of the current bills we’ve been watching, and the pros and cons for each one.
Vast plains and the Rocky Mountains paint the landscape of Wyoming, the Cowboy State. Its famed Yellowstone National Park, a nearly 3,500 square mile wilderness area, is home to hundreds of animal species (i.e., bears, wolves, bison, elk and antelope), dramatic canyons, alpine rivers, lush forests, hot springs and gushing geysers, its most famous geyser being Old Faithful. Yellowstone was the nation’s first national park and the first national monument was Devil’s Tower. Known for its backcountry skiing areas, forested trails and Snake River is Grand Teton National Park.
A colleague asked me the other day how my Rainmaking program was going. And the answer was, unfortunately, “It’s going well, but not taking off as quickly as I’d like it to.” After thinking about it, I got mad at myself and decided to shift the conversation to “It’s going amazingly well – thanks for asking!” The conversation needed to be reframed in order to honor the dream and the encouragement I’ve received from my friends and colleagues. So, thank you!
As we shared last week, Congress recently introduced two new online sales tax bills: Sensenbrenner’s H.R. 5893, which would make it harder for states to impose sales tax, and Goodlatte’s Online Sales Tax Simplification Act of 2016, which would make it much easier.
California always has budget problems. In 2012, temporary tax increases were voted in to raise both the state sales tax rate and the top personal income tax rate. These put California at the top among state for high tax rates. These provisions expire soon, but budget problems remain. So, Prop 55 on the November 2016 ballot calls for extending the income tax rate increase.
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