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.
Iowa Clarifies the Definition for Sales Tax Enforcement on Recreational Activities
Iowa has issued a sales tax change to their guidance for sellers of recreational activities that will take effect January 4, 2023.
Ohio Clarifies the Definition of Magazines Exempt from Sales Tax
Ohio has updated their rules to clarify the definition of \”Magazines distributed as controlled circulation publications\”, which are not subject to sales tax in the same manner as newspapers and community newspapers.
Ohio Supreme Court Rules NASCAR Licensing Fees Cannot Be Taxed Under State Commercial Activity Tax
The Ohio Supreme Court filed in favor of NASCAR\’s holding company in a dispute with the state tax commissioner over an audit assessment that determined that the licensing, broadcast, media, and sponsorship income was subject to the Commercial Activity (CAT) tax.
Georgia Tax Tribunal Orders Uber To Charge Tax On Safe Rider Fee, Pay Uncollected Taxes
The Georgia Tax Tribunal issued a pair of orders in the case of Uber Technologies Inc. v. Crittenden, determining that Uber underpaid its sales tax liability by several million dollars by not including its Safe Rider Fee in its taxable basis.
Kansas Retiring ST-16 Retailers’ Sales Tax Return
Effective January 1, 2023, The Kansas Department of Revenue will no longer use the ST-16 Retailers’ Sales Tax Return.
Business License Compliance: The Oft-Forgotten Registration
There are 55 states and territories, 3,000 counties and parishes, approximately 35,000 local municipalities, and special purpose districts that all have their own rules regarding business licenses, permits, and registrations. Here\’s how to handle it…
Illinois Releases Answers to 2022 Sales and Use Tax Issues Survey
In response to a request from a state tax reference book, Illinois has published a General Information Letter addressing issues surrounding the state\’s nexus standards and other laws and procedures.
Vermont Updates Cheat Sheet for Taxable and Exempt Items
Vermont has updated a set of guidelines detailing which items of tangible personal property are taxable or exempt in under their current laws for quick reference.