sales tax | TaxConnections

10 Aug 2017

A Focus On South Dakota’s Tax And Business Climate

This month takes us to the Mount Rushmore state of South Dakota. South Dakota is the 5th least populous state in the U.S., with a population of 865,454 people in 2016. It is also the 5th least densely populated state in the country. South Dakota is in the north-central United States, and is considered part of the Midwest by the U.S. Census Bureau. It is also part of the Great Plains region, which covers most of the western two-thirds of the state. West of the Missouri River the landscape becomes more and more rugged, consisting of rolling hills, plains, ravines, and steep flat-topped hills called buttes. In the south part of the state, east of the Black Hills, lies the Badlands of South Dakota. Erosion from the Black Hills, marine skeletons that fell to the bottom of a large shallow sea that once covered the area, and volcanic material, all contribute to the geology of this area. Read More

Written by Monika Miles | Posted in State Tax

19 Jul 2017

Are California Taxes That High?

Are California’s taxes high? I was asked this question recently by a reporter with Politifact California. Assemblymember Travis Allen who is running for governor had stated that California had the highest taxes. His website says that California has the highest personal income tax and state sales tax rates. [Chris Nichols article of 7/11/17]

If just looking at the rate structure, those are correct statements. The Federation of Tax Administrators posts helpful and current tables of the PIT and sales tax rates among the states. Read More

Written by Annette Nellen | Posted in State Tax

19 May 2017

Major Overhaul To Arkansas Sales And Use Tax Exemptions

Act 465 will significantly change the Arkansas sales and use tax exemptions available to manufacturers by phasing out two sales tax incentives while concurrently expanding the exemption for manufacturing repair parts and services. Arkansas Act 465, which was enacted on March 13, 2017, sunsets the InvestArk incentive as of June 30, 2017 and the Major Maintenance and Improvements incentive as of June 30, 2022.

Written by Aaron Giles | Posted in State Tax

23 Mar 2017

Pennsylvania- Clarification Issued On Tax Legislation?

Businesses obviously grow by selling their products outside of their local boundaries and across state lines. Pennsylvania (PA) has experienced, like most states, a relatively large amount of sales from companies outside PA, and, with that, the loss in sales tax revenue from those sales, as out of state companies do not often collect sales tax. Pennsylvania has a growing economy, and like most states, it is continually modifying its tax laws to be current with changing conditions and technologies.

Written by Monika Miles | Posted in State Tax

02 Mar 2017

How To Determine Taxability Of Services, Part 1

If you followed our recent series about multi-state tax facts for various types of technology companies, you likely noticed a common theme: it’s important to determine which states a business has created in so that they know which sales and use tax laws to follow. Although it can be tricky, the good news is there are some generalities that can help get a company started with the process.

Written by Monika Miles | Posted in State Tax

01 Feb 2017

A Common Sense Approach To Tax Reform

For years, there have been promises by both Republican and Democratic lawmakers to reform our tax code. I’m not sure if many of you recall that in 2010 there was a bi-partisan commission convened by President Obama, “Simpson Bowles” to draft a proposal on reforming our tax code. What happened? The Commission presented its report to Congress, but they refused to do anything.

Written by William Rogers | Posted in Tax Reform

05 Jan 2017

Multistate Tax: The Top 3 State Tax Issues For 2017

Happy New Year!

I always like the fresh feeling of a New Year – a clean desk, a new calendar, and a relaxed and grateful frame of mind from coming off of the holidays. I’m particularly excited about 2017 because it’s a year of special milestones and anniversaries for me – both personally and professionally, and I’m a big believer in celebrating those special occasions. I’m not sure exactly what the year will bring, but I have big expectations for it.

Written by Monika Miles | Posted in State Tax

28 Dec 2016

Colorado Income Tax Planning Update: Form 104

The following items might seem new and/or different for Colorado taxpayers on the CO 104 Income Tax form, some are some are not. These points below basically represent some of the more persistent questions coming across my desk as part of year end tax planning.

Written by John Dundon | Posted in State Tax

23 Nov 2016

An Interesting Look At Sales Tax And Legal Marijuana

Although the presidential campaign seemed to dominate headlines earlier this month, there was another proposition that passed in California (as well as a handful of other states): recreational marijuana became legal. What does this mean for the Golden State’s sales tax revenue? And how will it affect other industries? I thought it would be worth taking a look at what other states have done and how California may proceed in the coming months.

Written by Monika Miles | Posted in State Tax • United States

27 Sep 2016

Overlooked Tax Considerations For Small Business

If you own your own business, your tax obligations likely do not end with the IRS. There are other tax agencies looking to put the bite on you as well. Small business owners can cut their taxes by taking various tax deductions. Be sure you don’t pay more taxes than you need to by being aware of the overlooked tax considerations for small business.

Written by Advertorial | Posted in IRS • Small Business • Tax Deductions • Tax Tips

06 Nov 2015

Are Tips Taxable?

Mandatory tips and gratuities are generally subject to sales tax in California when:

• An amount is automatically added to the bill without first consulting with the customer after the meal is served. Think about group meals, banquets, etc. Generally when serving more than 8 at one table in one ticket.

• The customer and the business agree to a suggest tip amount before the service or event. Think preplanned gathering, education meeting with a meal, conference, etc.

• Menus, brochures, ads, or other materials state that tips, gratuities, or service charges will automatically be Read More

Written by Steven Potts | Posted in Individual • Sales/Use Tax

06 Apr 2015

Designing Sales Tax Exemptions – What Is Necessary?

Several sales tax exemptions fall under the “necessity of life” category – or at least that is typically how a state might describe them. For example, see page 1 of California Board of Equalization Pub 61 which lists food, health and housing under this category. One that caught my attention recently is Idaho’s addition of “eyeglasses and eyeglass component parts” as a sales tax exemption effective July 1, 2015.

While the lens are health related, the frames are often fashion related. Frames range in price from $50 including the lens (!) to over $250 for just the frames. If I’d been asked, I would have suggested that Idaho just exempt the cost of the lens and the cost of a basic frame (perhaps $20). The rest should be subject to sales tax. That helps the system be more equitable as expensive frames are not a necessity of life and more likely to be Read More

Written by Annette Nellen | Posted in Sales/Use Tax