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Updated regularly - information is updated as states announce dates and participation: Click here for chart

(01/24/2017)

In conjunction with the implementation of remote seller collection and notice/reporting rules, Vermont has modified the rules related to use tax accrual for individuals.  Effective retroactively to January 1, 2017, and applicable to returns filed for tax year 2017 and after, Vermont’s provision requiring reporting of use tax on individual income tax returns is amended to state that taxpayers are not required to pay more than $500 for such use tax liability arising from total purchases of items with a purchase price of $1,000 or less. Additionally, the amount of use tax that a taxpayer may elect to report is 0.10% of their adjusted gross income (previously 0.20% of their Vermont adjusted gross income). The percentage amount is no longer to be indexed annually. (H.B. 516, Laws 2017)

(10/23/2017)

Effective July 1, 2017, Illinois has enacted an exemption from the Hotel Operators’ Occupation Tax for entities that are organized and operated exclusively for religious purposes and possess an active Exemption Identification Number (EIN).  The exemption applies when the entity acts as a hotel operator renting, leasing or letting rooms in furtherance of the purposes for which it is organized; or to entities that are organized and operated exclusively for religious purposes, possess an active EIN, and rent the rooms in furtherance of the purposes for which they are organized. For purposes of the Hotel Operators’ Occupation Tax, the term “hotel” now also includes retreat centers, conference centers and hunting lodges. (P.A. 100-213 (S.B. 587), Laws 2017)

(10/23/2017)

North Carolina has issued a letter ruling stating that hotel stays over 90 days are exempt from state sales tax even if the guest checks out and immediately checks back in over that period in order to take advantage of a discount. The hotel operator offers guests who stay 30 consecutive days a discount. The discount can be used once per stay. In order to take advantage of the discount numerous times, a guest staying at the hotel for 120 days will check out and immediately check back in every 30 days. Throughout this process, the guest does not vacate their hotel room. The North Carolina Department of Revenue stated in the letter ruling that the rental of a hotel room for 120 days is not subject to sales and use tax, even if the guest checks out and checks immediately back in every 30 days. Unless there is a lease or other document that requires a guest to rent the accommodation for 90 or more continuous days, generally a renter in North Carolina will collect sales tax on the gross receipts from the rental until the accommodation has been rented to the person for 90 continuous days. Where sales tax is collected from a person who stays for 90 continuous days, the sales tax collected may be refunded or credited to the person.(North Carolina Private Letter Ruling, August 11, 2017) 

(10/23/2017)

California has extended the end date for the state’s partial sales and use tax exemption for manufacturing from July 1, 2022 to July 1, 2030. The exemption is also expanded to apply to the gross receipts from the sale of, and the storage, use, or other consumption in California of qualified tangible personal property purchased for use by:

 

  • a contractor purchasing that property for use in the performance of a construction contract for a qualified person that will use the property as an integral part of the generation or production, or storage and distribution, of electric power; and
  • a qualified person to be used primarily in the generation or production, or storage and distribution, of electric power.

 

The sunset date of the exemption is extended from January 1, 2023 to January 1 2031. Click here for our previous news item on this topic. (Ch. 135 (A.B. 398), Laws 2017, effective July 25, 2017)

(10/23/2017)

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