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 The 1% privilege tax has been repealed effective June 30, 2018 by Senate Bill 257 from the 2017 Legislative Session.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
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 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
Most taxpayers can claim one personal exemption for themselves and, if married, one for their spouse. This helps reduce their taxable income on their 2017 tax return. They may also be able to claim an exemption for each of their dependents. Each exemption normally allows them to deduct $4,050 on their 2017 tax return. While each is worth the same amount, different rules apply to each type.
Here are five key points for taxpayers to keep in mind on exemptions and dependents when filing their 2017 tax return: Read More
Some tax rules affect everyone who files a federal income tax return. With that in mind, here are seven facts about dependents and exemptions that taxpayers should know about.
1. Exemptions lower your income. There are two types of exemptions: personal exemptions and exemptions for dependents. You can usually deduct $4,050 for each exemption you claim on your tax return.
2. Personal exemptions. You can usually claim an exemption for yourself. If you’re married and file a joint return you can also claim one for your spouse. If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer.
Effective July 1st, 2016 Iowa Code 423.3(47)(a) now provides an exemption for manufacturers to purchase replacement parts for computers, machinery and equipment without paying Iowa sales and use tax. Manufacturing supplies also now qualify for this exemption. The legislation effecting this change has created new definitions for the terms “replacement parts” and “supplies”. These definitions can be found in Iowa Code 423(47)(d)(7) and (8), respectively.
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.
The amount for single and marred filing separate is $6,300 ($7,850 if 65 and over or blind), surviving spouse and married filing joint $12,600 plus $1,500 for each spouse 65 and over, or blind, heads of household $9,300 plus $1,250 if 65 and over or blind. For taxpayers claimed as a dependent on another return, it is the greater of (a) $1,050 or (b) $350 plus earned income. The amount can’t exceed the basic standard deduction.
What if you could walk into a store, buy something and not have to pay sales tax because the whole state does not impose a sales tax? Believe it or not, in some states that does happen. Several states, mainly in the South and East, have these so-called “tax holidays,” which at specific goods. As we discuss below, during tax holidays specific items are exempted from the tax, only in certain states, and these holidays occur only on limited days. Very little is uniform in the multi-state tax world.