An Ohio Information Release clarifies the treatment of delivery charges that became part of a sales price effective August 1, 2003. For sales and use tax purposes, these “delivery charges” are specifically included as part of the “price” of a…
California Food Combination Packages Taxability Discussed
In a California Tax Information Bulletin, the state explains the taxability for food packaged to include both food and non-food items – combination packages. Effective April 2007, pursuant to Regulation 1602, Food Products, which was recently amended to include combination…
Nonprofit Organization’s Sales of Meals Exempt in Missouri
The Missouri Department of Revenue granted exempt status for sales and use tax to a non-profit organization that provides disabled and mentally retarded people with work. Under section 144.030.2(19) sales made by or to religious and charitable organizations and institutions…
Texas Free Meals and Gift Cards to Employees Discussed
Meals and beverages provided to employees by employers for free of charge would be taxable to the extent that tax was due on the original purchase price of the food and drinks. Gift cards are not taxable “since it is…
New Hampshire Guidance on Food Taxability Released
Technical information release provides immediate information regarding tax laws focused physical areas of grocery stores, convenient stores and gas stations. Food prepared on the premises, as defined in Rev 701.16, which could reasonably be perceived as competing with an eating…
Exclusion for Newspapers Enacted in Louisiana
A revision of the definition of \”tangible personal property\” now specifically excludes newspaper from such definition.
Illinois Vehicle Purchase by a California Resident not Exempt
Illinois does not provide a use tax exemption for vehicles purchased by non-residents, if the vehicle is registered in a state which does not provide a reciprocal exemption for vehicles purchased by Illinois residents.
New York City Expands Clothing and Footwear Exemption
Effective September 1, 2007, the New York City sales and use exemption on clothing, footwear, and related items used to make or repair clothing (provided it becomes part of the clothing) is expanded to include all such items. Presently, the…
Application of Sales Tax Based On Location in Missouri
If a retailer has multiple locations in the state, the sales tax applied should be in accordance with the locality or municipality of the location of which the order was originally accepted. This interpretation includes such instances when the order…
Wisconsin Revises Terminology Related to Mobile and Manufactured Homes
Wisconsin has made various terminology revisions to Act 11 (S.B. 7), Laws 2007 which affect mobile and manufactured homes. As a result, newly-manufactured homes which qualify as dwellings are exempt from tax as a realty improvement. Taxpayers are reminded that…
Wyoming Permanently Exempts Groceries
House Bill 93 has been signed into law by Governor Dave Freudenthal; permanently eliminating the Wyoming sales and use tax on food for domestic consumption, effective July 1, 2007. Previously, Wyoming offered a temporary sales tax holiday for such food…
Certain Purchases by South Carolina Restaurants are Taxable
In response to a taxpayer\’s inquiry, the South Carolina Attorney General\’s office issued an opinion stating that items such as napkins, forks, spoons, and straws sold to restaurant owners by wholesalers are subject to taxation at the time of the sale.
Michigan Conforms to Existing Law by Amending Food and Drink Rules
The modified rules explain the tax treatment of bakeries, milk and dairy products, vending machines, water, and food for consumption.
Sales from Vending Machines Taxable in Missouri
A Missouri Letter Ruling addressing vending machine sales found that the sales were taxable as sales of tangible personal property. The taxpayer had a vending machine supplied by a wholesale vendor. The taxpayer makes no payments to the wholesale vendor…
Vermont Rules on Taxability of Veterinary Supplies
In a Formal Ruling, the Vermont Department of Taxes discussed which products they consider to qualify as “veterinary supplies” which are exempt in the state. The exemption is limited to supplies which are directly used in the treatment of animals…
South Dakota Amends Time Period for Exemption Certificates
If a seller has not obtained an exemption certificate or all relevant data for exemption certificates for South Dakota sales and use tax, the seller may, within 120 days following a request for substantiation, either prove that the transaction was…
Maine Instructional Sales Tax Bulletin – Resale Certificates
Maine Revenue Services has recently issued a sales tax instructional bulletin (54) on resale certificates intended to assist purchasers in determining their legal rights, duties, and privileges. Tangible personal property or taxable services purchased by retailers for resale are exempt…
California Taxability of Flowers Sold by Internet Sellers Clarified
California amended their regulation to define the term “florists” and clarify the applicability of sales and use taxes to the sale of flowers by Internet sellers. “Florist” is defined as “a retailer who conducts transactions for the delivery of flowers,…
Arkansas Governor Reduces Grocery Tax
On February 15, 2007, Arkansas Governor Mike Beebe signed into law Senate Bill 185 which reduces the state sales and use tax rate on food and food ingredients from 6% to 3%, effective July 1, 2007. The 3% state rate…
Maine Issues Bulletin on Summer Camp
Maine Revenue Services has issued an informational bulletin addressing the taxability of certain items and services associated with summer camps. The bulletin states that meals served at camps are taxable. If the price of meals is separately-stated, the charge is…
Virginia Taxability of Bottled Water
A recent letter from a taxpayer to the Virginia Tax Commissioner inquired whether or not the sale of five gallon and smaller bottles of water dispensed from water coolers qualified for the reduced sales tax rate when sold to both…
Texas Clarifies Collection of Local Taxes on Drop-Shipped Goods
An Austin, Texas based company was required to collect and remit Austin sales tax on an order that that was drop shipped by an out of state vendor directly to a Texas customer. The company was not required to collect…
Texas Taxes Purchase of Hotel In-Room Amenities
The Texas Department of Revenue has issued a decision regarding the purchase of in-room amenities by hotels. A group of Texas hotels protested an audit that found that amenities such as soap, shampoo and notepads were subject to sales tax…
Virginia Occasional Sale Exemption Did Not Apply to Three Week Event
The Virginia Tax Commissioner stated that a church holding an annual fundraiser did not qualify for an exemption as an occasional sale. The fundraiser ran for three weeks and sold “items that may be sold by other retailers”. The Tax…