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Tag Archive for Aaron Giles

Alaska, Arizona And Arkansas Sales And Use Tax (United States Sales And Use Tax Series – Part #2)

Aaron Giles - State Sales And Use Tax Exemptions 1

Alaska, Arizona And Arkansas Sales Tax Exemptions

Alaska Sales Tax Exemptions

The state of Alaska is one of five states in the U.S. that does not charge a state sales tax. At the local level over 100 municipalities do collect a sales tax, with rates ranging between 1% and 7.5%.   For more information on Alaska sales tax exemptions please visit:

Alaska Department of Revenue
Alaska Sales Tax Exemption Statement

Arizona Sales Tax Exemptions

The state of Arizona levies a Transaction Privilege Tax, which is similar to sales tax in other states. The state rate is 5.6% and is levied on all purchases of tangible personal property unless specifically exempted. All Arizona counties collect an additional tax ranging between 1-5.3%.
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United States Sales And Use Tax Series (Alabama Part #1)

Aaron Giles3

Alabama Sales Tax Exemptions

Alabama levies a 4% state sales tax on all purchases of tangible personal property unless the transaction is specifically exempted. There are more than 200 city and county sales taxes imposed in addition to the 4% state sales tax rate. Alabama’s range of sales tax rates is between 4% and 11%.

The consumers use tax is imposed on tangible personal property brought into Alabama for storage, use, or consumption in the state when the seller did not collect seller’s use tax on the sale of the property. The tax rates due are the same rates as for 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 Alabama on or before February 20th.

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State And Federal Excise Tax Refunds On Clear Diesel Used In An Exempt Manner

Aaron Giles And State Fuel Taxes

When we go to fill up at the corner gas station nearby we’re all familiar with the choices of diesel and the various octane ratings of unleaded fuel.  What your corner gas station may not have is a pump for dyed diesel.  That isn’t really a problem for individual consumers, but it might be for business consumers who may qualify for excise tax refunds on clear diesel used in a qualifying manner.

What is dyed diesel fuel?

Dyed diesel is called by a number of different names – off-road diesel, untaxed diesel, pink or red diesel – but the only real difference between it and the clear diesel is that dye has been added.  The dye is added to distinguish it from the clear diesel because dyed diesel is taxed at a lower rate by both the state and federal government.

Dyed diesel is illegal for use on roads and highways because it is taxed at a lower rate than clear diesel.  The taxes on clear diesel include both state and federal taxes for the maintenance of the roads and highways.  Because dyed diesel is intended to be used “off-road” the taxes to offset the costs of the wear and tear caused by vehicles operating on the roads and highways are not included in the taxes levied on dyed diesel.

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Texas Sales Tax Exemption For Manufacturing – What Is Exempt?

Aaron Giles - Texas Sales Tax Exemption

The Texas sales tax exemption for manufacturing makes purchases that are necessary and essential to the manufacturing process non-taxable.  Under the general heading of the Texas Sales Tax Exemption for manufacturing, there are a number of subcategories of purchases which are designated as taxable or non-taxable by the Texas Comptroller’s Office.

A manufacturer, as Texas defines, is a taxpayer who manufactures, fabricates or processes tangible personal property for sale. Texas Administrative Code 3.300 explains in detail what items specifically are exempt from sales tax and which items are not.  This list is not intended to be exhaustive, but does provide taxpayers solid guidance about what may and may not qualify for the Texas sales tax exemption for manufacturing.

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Sales Tax Consultants Top 5 Tips For An Effective Sales Tax Audit Defense

Aaron Giles - Sales Tax Audit Defense

Sales tax audit defense is one of the cornerstones of our sales tax consulting practice. We’ve represented hundreds of clients who were undergoing sales tax audits. We’ve fought audit assessments in all 45 U.S. states that have sales tax. One of the most common questions we hear from taxpayers upon receiving the notification of a sales tax audit is, “What should we do now?” We’ve put together the following list of the best tips and tricks of the trade from our experience as sales tax consultants defending a sales tax audit.

Sales Tax Audit Defense Tip #1 – Relax

It’s never good news when you find out that your company has been selected for a sales tax audit. It seems like the initial reaction everyone has is to cringe and think “I wonder what the auditor is going to find?” Followed quickly by the second thought of “I wonder how much time this audit is going to take?” While no one will ever confuse a sales tax audit with fun, it’s important to remember that there is nothing you can do to avoid the process. Stressing about what prompted the sales tax audit is a useless endeavor and it’s important to remember that it doesn’t necessarily mean that the state suspects any wrongdoing by your company. In fact, I’d say from our experience that less than 10% of audits are generated because of some suspected liability.

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Georgia: New Sales Tax Compliance Requirements For Online Retailers

Georgia will require online retailers to file sales tax compliance returns beginning January 1, 2019, if their annual Georgia revenues exceed $250,000 or if they have more than 200 separate retail transactions within the state per calendar year.

As an alternative to collecting Georgia sales tax from its customers and filing sales tax compliance returns, the retailer may instead send “tax due” notices to all Georgia customers who purchased more than $500 of taxable goods during the year. The law, which originated as House Bill 61 and became Act 365, was signed by Governor Nathan Deal on May 8, 2018.

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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.

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Sales Tax Consultant Having Success Recovering Georgia Sales Tax Refunds For Hospitals And Healthcare Industry

Georgia sales tax exemptions for healthcare providers, including hospital, clinics, and medical practice groups include several categories of purchases. One Georgia sales tax exemption for healthcare providers that a sales tax consultant from Agile Consulting Group has been recovering a significant amount of refunds for relates to prosthetic devices. Georgia Code Ann. § 48-8-3(54) states that prosthetic devices that are sold or used pursuant to a prescription are exempt from Georgia sales and use tax. Our sales tax consultant has learned that the prosthetic device may be purchased exempt from Georgia sales and use tax by a hospital, clinic, or medical practice group if it is sold or used pursuant to a prescription under federal or state law and title and possession is permanently transferred to a natural person to whom a prescription for the device is issued, per Georgia Comp. Rules & Regulations § 560-12-2-.30(5)(a). Read more

North Carolina Sales And Use Tax Exemptions For Manufacturers Revised Effective July 1, 2018

North Carolina sales and use tax law provides an exemption for sales of mill machinery, machinery parts and manufacturing accessories, however these items are subject to a 1% privilege tax with a maximum tax of $80 per article until June 30, 2018. The 1% privilege tax has been repealed effective June 30, 2018 by Senate Bill 257 from the 2017 Legislative Session.  Beginning July 1, 2018 purchases of qualifying mill machinery, machinery parts and manufacturing accessories will be exempt from both North Carolina sales and use tax as well as the privilege tax. Read more

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

Washington Sales And Use Tax Exemptions For Medical Products Purchased By Hospitals

Washington sales and use tax law considers hospitals and health care facilities to be the consumers of the medical supplies and equipment used in providing medical services to patients. The Washington sales and use tax exemptions that apply to certain purchases do so based upon the use of the item in question.

Prescription drugs for human consumption are exempt from Washington sales and use tax.  There is a three-pronged definition a substance must meet in order to be defined as a “drug” under Washington sales and use tax law.

First, it must be a substance that is listed in the official United States pharmacopoeia.  Second, it must be intended for use during the diagnosis, cure, mitigation, treatment or prevention of disease.  Third, the substance must affect the structure or function of the body.  Read more

Seven Benefits of Sales Tax Compliance Outsourcing

There are a variety of reasons it makes sense for companies to look for assistance with sales tax compliance outsourcing. Fast growth which makes keeping up with ongoing compliance requirements a challenge, turnover in key positions or an unfavorable audit experience resulting in significant liabilities are a few of the possible reasons we have heard from our clients. Regardless of the reason, many companies are making the decision to look for outside assistance with their sales tax compliance. Below are the seven benefits cited most frequently by our sales tax compliance outsourcing clients when asked about their experience:

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