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Companies doing business in Colorado should take advantage of the Colorado Department of Revenue’s Sales and Use Tax Lookup page to accurately determine company sales and use tax rates. The page provides resources such as the DR 1002 document that details sales and use tax rates for all Colorado cities, counties, and special districts, a spreadsheet that combines the tax rates in the DR 1002 document with location filing or jurisdiction codes from the DR 0800 document into a single lookup tool for filing sales tax, and links to electronic address database providers certified by the Department of Revenue as accurate. The Sales and Use Tax Lookup page is regularly updated, serving as an excellent resource for current and correct Colorado tax rates. The information includes both state administered and home rule authority information.

(11/20/2017)

Virginia has disallowed a taxpayer credit for sales taxes paid to Oklahoma because the sales tax was erroneously paid. The taxpayer purchased store fixtures from a business located in Oklahoma. Oklahoma sales taxes were paid on the purchase. The taxpayer hired a common carrier to pick up the store fixtures at the seller’s location and transport the fixtures to Virginia store locations. A Virginia auditor concluded that the fixture purchases were exempt sales in interstate commerce and that the Oklahoma sales taxes were erroneously charged by and paid to the seller. As a result, Virginia assessed use tax on the fixtures delivered to and used in Virginia. The taxpayer requested a credit for the Oklahoma sales taxes paid on the fixture purchases. For Oklahoma sales and use tax purposes, the taxpayer did not take possession of the fixtures in Oklahoma. Oklahoma's treatment of such sales transactions is consistent with the treatment of interstate sales transactions by Virginia. As a result, the taxpayer's payment of Oklahoma sales taxes to the seller was erroneous and the auditor was correct in not allowing a credit for the Oklahoma sales taxes paid. (Ruling of Commissioner, P.D. 17-116, Virginia Department of Taxation, June 29, 2017; Ruling of Commissioner, P.D. 17-117, Virginia Department of Taxation, June 29, 2017)

(11/20/2017)

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)

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