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North Dakota’s Attorney General has issued an opinion stating that the record retention requirement imposed on a retailer does not limit the Tax Commissioner’s authority to obtain the records necessary to audit a taxpayer, for sales and use tax purposes. North Dakota requires retailers to preserve their records for a minimum period of three years and three months. This is to support the statute of limitations for the Commissioner to assess under audit.  If the determination of tax due relates to an incorrect or insufficient return filed by the taxpayer, notice of such determination shall be given not later than three years after the last day on which the return was due or three years after the return was filed, whichever period expires later; notice of determination of tax due for any reporting period for which a taxpayer failed to file a return shall be given not later than six years after the due date of the return; where fraudulent information is given in a return or where the failure to file a return is due to the fraudulent intent or willful attempt of the taxpayer in any manner to evade the tax, the time limitation herein provided for giving notice of the determination of tax due shall not apply.  Due to the conflict between the record retention requirement of 3 years and 3 months and the potential for a 6 year or unlimited assessment, retailers who preserve their records for longer periods must provide those records to the Tax Commissioner upon request under audit. The opinion overrules any previously issued, contrary opinions issued by the office of the Attorney General. (Opinion No. 2017-L-05, North Dakota Attorney General, December 5, 2017)

(12/18/2017)

Enacted legislation specifies the methods for weekly sales tax remittance in Connecticut, effective January 1, 2018. The Commissioner of the Connecticut Department of Revenue Services is authorized to require any taxpayer who is delinquent to remit sales tax on a weekly basis. The enacted legislation requires such taxpayers to remit the tax through a service provider certified by the Streamlined Sales Tax Governing Board unless they elect to establish a separate account with a financial institution and deposit into that account the taxes collected or received within two business days of that collection or receipt. If this option is selected, the taxpayer may select a bank, Connecticut credit union, federal credit union, an out-of-state bank with a Connecticut branch, or an out-of-state credit union that maintains an office in Connecticut.  



If a taxpayer withdraws funds from that account for any purpose other than to remit tax due, the person will be guilty of larceny and each unauthorized withdrawal will constitute a separate offense. A taxpayer’s choice for weekly remittance is irrevocable and remains in effect until the commissioner notifies the taxpayer that they are no longer required to weekly remit the tax. The commissioner is prohibited from waiving any penalties imposed on taxpayers who must remit sales tax on a weekly basis. Taxpayers that are obligated to file monthly or quarterly returns, including taxpayers who must remit sales taxes on a weekly basis, are required to file returns electronically and make each weekly remittance via electronic funds transfer (EFT). (Ch. 36 (H.B. 7109), Laws 2017)

(11/28/2017)

On December 31, 2107, all Colorado sales tax licenses are set to expire. Sales tax licenses are used for the collection and filing of Colorado and local sales taxes. Separate, individual licenses and a $16 renewal fee are required for each physical location. The renewed licenses will be valid for a two-year period beginning January 1, 2018. Even if a license was recently applied for and received, renewal for the new two-year period is still required. Before beginning the renewal process, you should verify your open locations using the Colorado Department of Revenue’s tax filing portal, Revenue Online.



There are several options to renew your sales tax license.  First, you may complete your renewal online through Revenue Online, which allows payment for each license using credit card or e-check. Online renewal is also possible through Electronic Funds Transfer (EFT), as paying for renewed licenses by EFT fulfills the requirement of filing a license renewal application. Finally, paper renewal is also available using the DR 0594 form. When you send in your payment, remember to include your Colorado Account Number and the words “sales tax renewal” on the check or money order.
 

(11/28/2017)

Effective December 1, 2017, Wisconsin is expanding its exemption from sales tax for lump sum contracts to apply to all construction contracts and to subcontractors. An exempt construction contract is defined as a “contract to perform real property construction activities and to provide products.” This rule exempts the sale of tangible property that is not affixed to real property from sales tax on either a time and material or a lump sum contract.  In these cases, the contractor is deemed the consumer and owes the use tax on the cost of the materials. The expanded exemption is first applicable to a contract that is entered into or extended, modified, or renewed on December 1, 2017.



Additionally, products sold by a subcontractor to a prime contractor, or to another subcontractor for eventual sale to the prime contractor, as part of a construction contract are exempt if:
 

  • the total sales price of all products is less than 10% of the total amount of the construction contract; or
  • the products will be sold by the prime contractor as part of a construction contract, and that sale is exempt as a sale of products by a prime contractor.


The subcontractor is considered the consumer of the products and must pay the sales or use tax on them.
 

The subcontractor is considered the consumer of all products used by the subcontractor in real property construction activities, but the subcontractor may purchase, without tax, for resale, products that are sold by the subcontractor to the prime contractor or another subcontractor as part of the subcontractor’s construction contract for resale to the entity and that are not consumed by the subcontractor in real property construction activities.
 

No use tax is due by either the prime or subcontractor for materials incorporated or sold to an exempt entity for a real property project. (Act 59 (A.B. 64), Laws 2017)

(11/28/2017)

Effective August 11, 2017, the Illinois State Treasurer is authorized to (at least annually) share with the Illinois Department of Revenue the names (and social security numbers, if available) of people who appear to own unclaimed property held by the State Treasurer. The Department shall notify the Treasurer if any of these people has filed an income tax return and will provide the last known address and any additional addresses of the person, except as prohibited by federal law. The Treasurer can deliver unclaimed property or pay the amount owed to someone if the following conditions are met:
 

  • The value of the property owed is $2000 or less;
  • The property is not tangible property or securities;
  • The last known address for the person according to Department records is less than 12 months old; and
  • The Treasurer has sufficient evidence that the person is the owner of the property and currently resides at the last known address.


If the unclaimed property has a value greater than $2000 or is tangible property or securities, the Treasurer will provide notice informing the person that he or she is the owner of unclaimed property and may file a claim with the Treasurer for the return of the property. (Public Act 100-0047 (HB 1808))
 

(11/28/2017)

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