An architectural illustration company’s sales of architectural images in Missouri were found to be taxable sales of tangible personal property. The company delivers original images in both watercolor drawings and computer JPEG files to its clients for use in larger…
Kentucky Repeals Packaged Liquor Exemption
Kentucky will no longer allow a sales tax exemption for the sale of packaged distilled spirits, wine and malt beverages not consumed on the premises licensed for their sale.
Ship Unloaders on Rails Denied Rolling Stock Exemption in Texas
A taxpayer’s purchase of parts for its ship unloaders that operated on rails did not qualify for the Texas rolling stock exemption from sales and use tax. The taxpayer, an aluminum oxide manufacturer, used the equipment to unload materials from…
Iowa Clarifies Complimentary Beverages and Meals
The Iowa Department of Revenue has made corrections to an article issued in the June 2008 edition of eNews, discussing the taxability of complimentary beverages and meals provided by bars, restaurants, and hotels/motels.
North Carolina Department of Revenue Discusses Exemption for Sales of Baked Goods
The North Carolina Department of Revenue announced that, effective January 1, 2009, there will be a new exemption from State sales and use tax for bakery items which are sold without eating utensils by an artisan bakery. These items include…
Exempt Organization in Pennsylvania Must Collect Tax on Fundraiser
The Pennsylvania Department of Revenue decided that a taxpayer must collect sales tax on its 2008-2009 fundraisers because these sales activities are frequent and recurring, not isolated.
New Mexico Out-of-State Computer Sales Subject to Tax
The New Mexico Court of Appeals found that a taxpayer had sufficient nexus in the state and was subject to its gross receipts tax on its sales of computers via the Internet, mail, and telephone. The taxpayer argued that the…
Virginia Changed Tax Policy for Food Sales by Nonprofit Organizations
Effective October 1, 2008, the Virginia Department of Taxation has changed its policy for nonprofit organizations, exempt under IRC ยง501(c), that sell prepared food or meals, or sell tickets to events that include prepared food or meals, provided they meet…
Utah Amends Exemption for Aircraft Parts and Equipment
While the exemption for sales of aircraft parts and equipment to entities described in North American Industry Classification System Code 336411 (Aircraft Manufacturing) or 336412 (Aircraft Engine and Engine Parts Manufacturing) was amended to limit the period from July 1,…
Massachusetts Determines Indirect Cost Items Do Not Qualify for Resale Exemption
The Massachusetts Appellate Tax Board determined that a defense contractor\’s purchases of indirect cost items connected to its performance of government contracts did not qualify for the resale sales tax exemption.
Digital Media and Codes Taxable in Nebraska
Digital works delivered electronically, such as digital audio, digital audio-visual, digital books, and digital codes, are subject to Nebraska sales and use tax if they are taxable when delivered in a tangible form.
Washington Newspaper Definition Includes Electronic Version
In recent legislation the definition of “newspaper” has been expanded to mean all electronic versions of any printed newspaper and any supplement 1) provided in the newspaper, or 2) separate from the newspaper, but that has distribution within the circulation…
Pennsylvania Isolated Sales Exemption Explained
In a recent Legal Letter Ruling, the Pennsylvania Department of Revenue has clarified the three “times/seven days” restriction of the isolated sales exemption from sales tax. The Department defines “isolated sale” as the infrequent sale of a nonrecurring nature made…
Complimentary Meals Not Taxable in Nevada
Recently, the Nevada Supreme Court ruled that Nevada businesses are not liable for paying sales and use taxes on food served to customers or employees free of charge.
Louisiana Excludes Newspapers from Definition of Tangible Personal Property
Louisiana issued a bulletin to remind taxpayers that effective July 1, 2008, newspapers will be excluded from the definition of tangible personal property.
Items Sold at North Carolina Convenience Stores with Restaurants are Taxable
Any food, non-food and prepared food items, including soft drinks, which are sold at convenience stores that have a connected restaurant are subject to sales and use tax.
Washington Rule on Delivery Charges Amended
Washington has amended its sales and use tax rule on delivery charges, which states that the measure of the tax is the “selling price”, including all delivery charges such as transportation, shipping, postage, handling, crating, and packing. Effective July 21,…
Wisconsin Tax on Symphony Tickets to Be Reexamined
A Wisconsin Circuit Court remanded to the Wisconsin Tax Appeals Commission a case of whether a nonprofit’s symphony tickets are subject to the state’s sales tax on admissions. The court determined that the Commission incorrectly interpreted the taxing statute by…
Soft Drinks, Candy Sold through Vending Machine in Missouri Subject to Reduced Food Tax Rate
Provided they qualify as food items which may be purchased with food stamps, soft drinks and candy sold through vending machines are subject to the reduced food sales tax rate. Except for vending machine sales, the term “food” does not…
Washington Amends Rule on Food and Food Ingredients
The Washington Department of Revenue amended the sales and use tax rule on food and food ingredients, effective December 31, 2007. The amended rule reflects that in a combined sale of taxable and exempt items, the entire transaction is exempt…
New Jersey Food Items Sold at Kiosks Taxable
Sales tax assessments on food items sold by certain New Jersey vendors operating kiosks and free-standing carts at a sports complex and mall were upheld in a recent court case. The Court indicated that the interpretation of “premises” includes the…
Certain Florida Delivery Charges Exempt
Florida sales tax and local discretionary sales surtax may be avoided on certain charges for the delivery, inspection, placement, or removal of packaging or shipping materials of furniture, appliances, or similar items by the seller at the location of the…
Tennessee Food Rate Reduced
Effective January 1, 2008, the Tennessee Department of Revenue has reduced the sales and use tax rate on sales of food and food ingredients from 6% to 5.5%. (Important Notice No. 07-14, Tennessee Department of Revenue
Drive-Through Window Taxable in Arizona
The Arizona Tax Court found a doughnut store owner to be liable for sales tax on drive-through sales of doughnuts and other consumable items. While the Court accepted that the drive-though sales were recorded separately from inside sales, it made…