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The Sales Tax Institute is dedicated to
educating business people about sales and use tax concepts and issues. We enable companies
to minimize the tax expenses and administrative costs related to accurate compliance by
offering three training courses throughout the United States.
The course offerings are: Sales Tax Concepts,
Basics of Sales and Use Tax,
and the Advanced Sales and
Use Tax Workshop.
If you would like more information about
upcoming courses, send a message to courseinfo@salestaxinstitute.com.
The Sales Tax Institute was founded by
Diane L. Yetter of
Yetter Consulting Services, Inc.
HOT NEWS UPDATE: 04/18/2008
Canada GST/HST Rate Reduction in 2008 Effective January 1, 2008, the GST rate and the federal component of the HST rate was reduced from 6% to 5%. The provincial component of the HST will remain at 8%. This means that the rate of HST is reduced from 14% to 13%. The HST applies to purchases made in or imported into New Brunswick, Nova Scotia, and Newfoundland and Labrador (the participating provinces). The GST does not apply to basic groceries, most medical services and devices, prescription drugs, residential rents and exports. (Canada Revenue Agency, Notice 226 - Proposed GST/HST Rate Reduction in 2008) President Bush Signs Continuation of Ban on Internet Access Tax On October 31, 2007, President Bush signed into law a seven-year extension of the moratorium on state and local taxes on internet access. The measure will amend the Internet Tax Freedom Act Amendments Act of 2007, includes a new definition of “internet access” which means a service that enables users to connect to the Internet to access content, information, or other services. The grandfather clause that permits Internet access taxes that were generally imposed and actually enforced prior to October 1, 1998, is also extended until November 1, 2014. However, the grandfather clause will not apply to any state that has, more than 24 months prior to the enactment of this legislation, repealed its tax on Internet access or issued a rule that it no longer applies such a tax. [H.R. 3678, as agreed to by the U.S. House of Representatives, October 30, 2007] Louisiana Manufacturing Phase-Out Tax Accelerated The current manufacturing phase-out of Louisiana sales and use tax on certain manufacturing machinery and equipment has been accelerated to exclude 100% of the purchase, lease, or rental of qualifying manufacturing machinery and equipment for all periods beginning on or after July 1, 2009. The phased-in (complete phase-out of the tax) exclusion was originally scheduled to extend over a seven-year period that began on July 1, 2004, and was to have ended July 1, 2010. Previously, only 82% was to be excluded on July 1, 2009, and 100% on July 1, 2010. Furthermore, the exclusion of machinery and equipment used by a manufacturer in a plant facility predominately and directly in the actual manufacturing for agricultural purposes or the actual manufacturing process of an item of tangible personal property has been modified to include rubber tired farm tractors, can harvesters, cane loaders, cotton pickers, combines, haybalers, attachments and sprayers, clippers, cultivators, discs, plows, and spreaders. Additional regulations apply. (Act 12, S.B. 12, Laws 2008, 2nd Extraordinary Session, effective July 1, 2008) North Carolina Combined General Rate Increased Effective April 1, 2008, the combined general rate of North Carolina sales and use tax is increased from 6.75% to 7%. The combined general rate (to include county rates) applies to the gross receipts derived from providing telecommunications service, ancillary service, and video programming and to sales of spirituous liquor other than mixed beverages. Legislation provides that for an increase in the authorization for North Carolina local sales and use taxes, the effective date of a rate change for an item taxed at the combined general rate is the date on which local sales and use taxes authorized for every county become effective in the first county or group of counties to levy the authorized taxes. The increased rate applies to sales in all North Carolina counties and is not limited to such sales in only those counties that adopted the additional 0.25% local tax. (Important Notice: Increase in Combined General Rate of Tax, North Carolina Department of Revenue, February 2008) Indiana Sales and Use Tax Rate Increased to 7% Governor Mitch Daniels signed HB 1001 which will increase the state sales and use tax rate from 6% to 7%, effective April 1, 2008. In addition, other provisions added to the new legislation include caps on the following: homeowners’ property tax bills at 1.5% of their assessed value in 2009 and 1% in 2010 then thereafter. The plan would cap rental and agricultural property at 2.5% in 2009 and 2% in 2010 and business property at 3.5% in 2009 and 3% in 2010. (H.B. 1001, Laws 2008, Indiana General Assembly, March 14, 2008) Tennessee Announces March Tax Holiday The Tennessee Department of Revenue has announced one-time sales tax holiday from Friday, March 21, 2008 through Sunday, March 23, 2008. Qualified items exempt from sales and use tax include: 1) clothing costing $100 or less per item; 2) school and art supplies costing $100 or less per item; and 3) computers costing $1,500 or less. (Notice, Tennessee Department of Revenue, Feb 7, 2008) Maryland Sales and Use Tax increased to 6% Governor O’Malley signed HB 5 which will increase the state sales and use tax from 5% to 6%, effective January 3, 2008. In addition, other provisions added to the new legislation include: tax holiday provisions, taxes to vending machines sales, admission and amusement tax, and a rate increase exemption for contractors and builders. (H.B. 5, Laws 2007, Maryland Governor's Office, November 19, 2007 Michigan Use Tax on Select Services Repealed Governor Jennifer Granholm signed HB 5408 on December 1, 2007. This law creates a business tax surcharge that replaces the service tax originally set under HB 5198. The law to repeal the use tax on select services was signed just hours after the original law went into effect. Services originally targeted included: consulting services, office administration services, business service center services, investment advice services, landscaping services, travel and reservation services, carpet/upholstery cleaning services, warehousing and storage services, packaging and labeling services, specialized design services, courier and messenger services, janitorial services and certain personal and personal care services. The new law, effective December 1, 2007, provides that businesses that charged and collected the 6% use tax on services, before the law was repealed on December 1st, can either refund that money to the purchaser/user of the service or remit the revenue to the State of Michigan when the first Use Tax payment is due. (H.B. 5408, December 1, 2007, Michigan Department of Revenue) |
