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.
Mississippi Enacts Exemption for Sales of Coins, Currency and Bullion
Effective July 1, 2023, Mississippi has enacted a sales tax exemption for sales of coins, currency and bullion. “Bullion” means a bar, ingot, or coin: Manufactured, in whole or in part, of gold, silver, platinum, or palladium; That was or…
Arizona Eliminates Annual Renewals for Certain Nonprofit Sales Tax Exemptions
Effective 91 days after the close of the current legislative session, Arizona no nonprofit organizations that qualify for exemptions to the state\’s Transaction Privilege Tax will no longer be required to annually re-certify their exempt status.
Texas Non-Profit’s Sales of Learning System, Subscriptions, and Membership Dues are Exempt
A non-profit professional healthcare organization’s sales of a learning system, subscriptions to its journal, and annual membership dues were exempt from Texas sales and use tax.
Tennessee Updates Definition of Industrial Machinery for Sales Tax Exemption
Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption.
D.C. Court Affirms the Denial of Refund Claim for Hospital
The District of Columbia Court of Appeals affirmed the denial of George Washington University Hospital’s (GWUH) refund claim for nearly $1,000,000 in sales tax collected between 2016 and 2019.
Virginia Extends Sales Tax Exemptions for Natural Gas and Oil
Virginia has extended its exemption for raw materials, fuel, power, supplies, and machinery used in the drilling, extrusion, or processing of natural gas and oil, and items related to the reclamation of well areas, until July 1, 2024.
Grass Seed and Erosion Control Blankets Exempt as Construction and Building Materials in Colorado
The Colorado Department of Revenue (DOR) issued a private letter ruling discussing the taxability of sales of grass seed, erosion control blankets and fertilizer to a construction contractor.
Texas Appeals Court Denies For-Profit Correctional Facility’s Use of Government Exemption
A Texas appeals court has denied a refund claim brought by a private operator of correctional and detention facilities, holding a lower court\’s decision that the company does not act as a instrumentality of the state or federal government while operating state and federal prisons.
Tribal Owned Contractor Owes Arizona Transaction Privilege Tax
A three-judge panel for the Arizona Court of Appeals, Division One released a decision in the case Ute Mountain Ute Tribe v. Arizona Department of Revenue, upholding a state court decision that Weeminuche Construction Authority is responsible for remitting tax on contracting proceeds done on tribal lands.
Key Sales Tax Updates Affecting the Northeast
No region of the United States is immune from sales tax updates…
Indiana Rules Rental of Some Equipment Used on Manufacturing/Production Site Tax Exempt
An Illinois based company that manufactures, assembles, and installs automated food processing, packaging, and conveyor equipment in food production lines at food processing plants successfully argued the rental of some equipment should be tax exempt in Indiana.
South Carolina Public Utilities Cannot Claim Manufacturing Exemption
The South Carolina Department of Revenue put forth a ruling stating Public Utilities are ineligible for property tax exemptions on manufacturing properties, formally bringing the Department in line with legislation prohibiting the same.
Virginia Denies Sales Tax Refund for Reagents used by Medical Diagnostic Testing Provider
The Virginia Department of Taxation (DOT) issued a letter ruling upholding the denial of a sales and use tax refund for chemical reagents used by a provider of medical diagnostic testing and analytical services.
Hawaii Farm’s Guinea Grass is Subject to Tax
On November 28,2022, The Intermediate Court of Appeals of the State of Hawaii ruled that a farm producing guinea grass is subject to taxation and ineligible to claim exemption based on agricultural use.
Sales by Non-Profit Thrift Store Are Exempt in Missouri
The Missouri Department of Revenue (DOR) issued a letter ruling stating that a religious organization that runs thrift stores is not required to collect sales tax on purchased items sold in the stores.
Tennessee Releases Guidance for Upcoming New Farm Equipment Exemption
The Tennessee Department of Revenue has released guidance on the application of the state\’s revised farm equipment sales and use tax exemption that will come into effect on January 1, 2023.
Virginia Discusses Exemptions for Food and Personal Hygiene Products
Virginia has issued a bulletin discussing the state’s exemption for food purchased for human consumption and essential personal hygiene products.
Sales Tax 101: Determining When Sales Tax Applies
This blog details key items in understanding when a sale is taxable or exempt and what you need to know to ensure that an exemption can be claimed.
California Enacts Sales and Use Tax Exemption for Qualified Hybrid and Zero-Emission Vehicles
Effective January 1, 2023, California has enacted a sales and use tax exemption for qualified motor vehicles (including designated hybrid and zero-emission vehicles) sold to qualified buyers.
Idaho Issues New Exemption Certificate for Real Property Contractors
Idaho has issued a new sales tax exemption certificate for real property contractors.
Colorado Enacts Exemption for Essential Hygiene Products, Effective January 1, 2023
Effective January 1, 2023, Colorado has enacted legislation creating a state-level sales and use tax exemption on the sale, storage, use or consumption of incontinence products, diapers, and period products.
Alabama Denies Exemption Certificate For Contractor After Completion of Government Project
An electrical subcontractor working on a project for the University of Alabama was denied their request for a sales and use exemption certificate by the Alabama Tax Tribunal.
Drugs Sold for Clinical Trials are Free from Sales and Use Tax in Tennessee
In a letter ruling approved by David Gerragano the Commissioner of Tennessee department of Revenue on June 16th, 2022, it was determined that drugs sold in relation to a clinical trial are exempt from sales and use tax.