Administration of Sales & Use Tax

The Rise of Retail Delivery Fees: Unveiling the Impact on Consumers

We are putting the Colorado Retail Delivery Fee center stage and diving into how its story has unfolded thus far.

Indiana Enacts Changes to Tax Exemption for Sales by Nonprofit Organizations

Indiana has enacted legislation that makes changes to the state’s sales tax exemption for sales of tangible personal property by nonprofit organizations.

Michigan Provides Guidance on Taxability of Delivery and Installation Charges

Effective April 26, 2023, delivery and installation charges are excluded from the “sales price” and “purchase price” for purposes of Michigan sales and use tax if conditions are met.

Oklahoma Updates Sales Tax Permit, Special Event, and Tax Lien Regulations

Oklahoma H.B. 2289 has changed provisions in three key areas: obtaining sales tax permits, organizing special events, and tax lien sales.

Key Sales Tax Updates Affecting the Mid-Atlantic

To help those with business operations in the Mid-Atlantic or those who make sales into Mid-Atlantic states keep up, we’re putting a magnifying glass on some of the key recent sales tax changes.

Arkansas Storm Victims Qualify for Tax Relief, Extended Federal Returns Deadline

The Internal Revenue Service (IRS) has issued a news release stating that Arkansas storm victims now have until July 1, 2023 to file various federal individual and business tax returns and make tax payments.

South Dakota Temporarily Lowers Sales Tax Rate

South Dakota is lowering its sales and use tax rate for four years under a bill signed into law by the governor. This house bill is reducing the rate from 4.5% to 4.2%. The reduced rate will be effective from July 1, 2023 – June 30, 2027.

Alabama Extends Filing Deadline for Taxpayers in Declared Disaster Areas

The Alabama Department of Revenue (ALDOR) is offering tax relief to Alabama taxpayers who reside or have a business in federally declared disaster areas in Alabama where damage was caused by severe weather in January.

Use Tax Accrual: Manual and Automated Options to Keep You Compliant

Decisions your suppliers make as they react to changes in where they are required to collect sales tax can greatly impact your relationship with them as a customer.

CA Extends Tax Deadline for 41 Counties

California Governor Gavin Newsom announced that residents and businesses impacted by winter storms in the state have until Oct. 16 to file their taxes for this year.

California Taxpayer Liable for Use Tax on Repair Parts Used for Out-of-State Customers

The California Office of Tax Appeals (OTA) held that a taxpayer is liable for use tax on parts used to repair equipment in California for out-of-state customers.

Pennsylvania High Court Rules on Application of Coupons in Sales Tax Calculations

The Supreme Court of Pennsylvania ruled in favor of the state in a case brought by a customer over a denied refund of overpaid sales tax on orders where coupons were used.

Antimicrobial Agents Did Not Qualify for Wholesale Exemption in Alabama

A taxpayer that operates a poultry processing plant in Alabama was not entitled to a refund of sales and use tax paid on purchases of antimicrobial agents since it failed to prove that the purchases were non-taxable as a “wholesale sale.”

Illinois Amends Administrative Code to Address Specifics of Leveling the Playfield for Out of State Sellers

Effective January 23rd, the Illinois Department of Revenue adopted amendments to their use tax rules to provide guidance in line with the state\’s Leveling the Playing Field for Illinois Retail Act, which originally came into effect on January 1, 2021.

New York Department of Taxation and Finance Refusal to Issue Certificate of Authority Upheld

After reviewing the facts of the case and considering petitions from both sides, the Administrative Law Judge determined the Department of Taxation was within its power to refuse to issue a certificate of authority despite Bar 13, Inc declaring Chapter 11 Bankruptcy because the Department had previously revoked Bar 13’s certificate of authority.

3 Trending 2023 Sales Tax Issues

As a new economic cycle unfolds, some changes are appearing on the horizon. States have been thorough in reassessing their sales tax policies to make positive changes for taxpayers. A lot of bold tax changes were proposed in the 2022 legislative session, and the same is to be expected of 2023.

California Tax Relief for Taxpayers in Humboldt County Directly Affected Earthquake

In response to a magnitude 6.4 earthquake that struck Northern California on Dec 20,2022, the California Department of Tax and Fee Administration (CDTFA) has announced relief measures for taxpayers who were affected.

North Carolina Issues Guidance on Dry-Cleaning Solvent Tax

North Carolina imposes a privilege tax on dry-cleaning solvent retailers at a flat rate for each gallon of dry-cleaning solvent sold to a dry-cleaning facility. An excise tax is imposed on dry-cleaning solvent purchased for storage, use, or consumption by a dry-cleaning facility in North Carolina.

Pennsylvania Retirement of e-TIDES February 24,2023

e-TIDES, the online filing system for Pennsylvania taxpayers, will be officially retired as of February 24,2023.

Tax Deadlines Extended by IRS for California Storm Victims

The IRS announced households and businesses are eligible for extended deadlines in 20 California counties where a federal emergency has been declared.

Hardware Company Sales Not Wholesale, Mississippi Justices Told

After receiving an unfavorable lower court ruling, attorneys for Toolpushers Supply Company filed a brief claiming certain transactions should be exempted from tax and argued the purchasers had presented sales tax permits allowing for purchases without sales tax.

Alaska Announces Voluntary Disclosure Program

As of January 1, 2023, the ARSSTC will require remote sellers who reach the limit of $100,000 gross sales or 200 transactions statewide in Alaska to register to collect and remit sales tax in municipalities that are members of the ARSSTC.

California OTA Finds CEO Personally Liable for Sales Tax in Company’s Fraudulent Reporting

The California Office of Tax Appeals (OTA) released an opinion in Matter of Goldstein finding that J. Goldstein, CEO of National Imaging Company dba Reseda Mobil (NIC), was personally liable for the tax and penalties related to an audit.

Ohio Expands Bad Debts to Include Tax Paid on Purchases made with Private Label Credit Cards

In line with current recommendations from the Counsel on State Taxation, the state of Ohio has updated its laws regarding bad debt deductions on sales tax returns to allow states to take a credit for tax remitted for a transaction made with a private label credit card that is in default.