During a recent special session, the West Virginia Senate approved a bill decreasing the sales and use tax rate on food and food ingredients from the current 5% to 4%, effective June 30, 2007, and then to 3% after June…
Wyoming Provides Exemption on Foods for Domestic Consumption
In order to encourage economic activity in the state, regulations have been adopted which provide for a two-year sales and use tax exemption on food for domestic home consumption, effective July 1, 2006, through June 30, 2008. The Department of…
Utah Food Tax Reduced, Definitions Modified
Amendments to definitions and provisions relating to the Utah sales and use tax on food and food ingredients become effective January 1, 2007. While food and food ingredients remain subject to county and local taxes, the state sales and use…
Postage and Freight Exempt For Arizona Printers
Under Arizona’s job printing classification, postage and freight are exempt from transaction privilege tax. The taxpayer must separately document the postage and freight on the purchaser’s invoice and in the taxpayer’s records to qualify for the exemption. In addition, sales…
New Jersey Delivery Charges Subject to Sales Tax
Effective October 1, 2006, delivery charges are subject to sales and use tax, regardless of whether they are separately stated on the invoice or included within the sales price. Prior to this law change, separately-stated delivery charges were not taxable.…
California Use Tax Applied to Out-of-State Wholesaler/Drop Shipper
In California, any previous owner of tangible personal property who distributes property sold by an out-of-state retailer to a California customer is deemed a retailer of that property and is responsible for collection of tax on that property. This position…
No Tax On Free Meals In Pennsylvania
Pennsylvania restaurants that provide free meals to employees or patrons are not subject to sales and use tax. In addition, no use tax is due on restaurant purchases as long as the food is obtained from wholesalers, distributors, grocery stores…
Qualifying Clothing Now Exempt In New York
Effective April 1, 2006, New York State no longer charges sales and use tax on clothing, footwear, and items used to make or repair clothing, costing less than $110 per item. In addition, any county or city in New York…
New Jersey Imposes Gross Receipts Tax on Fur Clothing
Effective July 1, 2006, a 6% gross receipts tax is imposed on all persons making retail sales of fur clothing within New Jersey. Sales subject to the Fur Clothing Gross Receipts Tax consists of all clothing and accessories that are…
UT Reduces Food Sales Tax Rate
On March 17, 2006, the Governor of Utah signed House Bill 109 (HB 109) into law. Instead of exempting food and food ingredients from Utah sales and use tax as originally planned, the law taxes them at a reduced rate…
Permit and Other New Requirements for Out-of-State Wine Shipments.
Deliveries of wine to Texas consumers require out-of-state wineries to carry appropriate sales tax permits and a direct shipper permit. The qualifying carrier must label the shipped package to show that it contains wine and its intended recipient. Permit holders…
West Virginia to Reduce Tax on Certain Food Products.
West Virginia reduced the sales tax on food and food ingredients intended for food consumption to 5% beginning on January 1, 2006. The reduction does not apply to prepared food (excluding pasteurized food and baked goods), dietary supplements, soft drinks,…
Delivery Charges Subject to Florida Sales Tax When Combined with Set-Up Fees.
Although delivery charges are generally exempt from tax when optional and separately-stated, Florida has indicated that they are taxable when combined with taxable installation charges…
Mississippi: Taxability of Rebates and Buy-Downs Explained
A Mississippi sales tax regulation has been explained to indicate that a rebate given by a seller is considered to be a discount from the selling price when shown on the invoice and, therefore, exempt for sales tax purposes.
New Jersey Cigarette Sales Act Enacted.
The Cigarette Sales Act was signed into law as Chapter 85, Pamphlet Law 2005 on May 4, 2005. It requires that all cigarette sales be made “face-to-face” unless the seller has (1) met the terms of the federal Jenkins Act,…
Massachusetts Fast Food Restaurant Not Liable for Use Tax on Meal Toys.
A fast food restaurant was not liable for Massachusetts use tax on purchases of toys for its children\’s meals because the restaurant did not use the toys for promotional purposes, but rather sold the toys as a component of the meals that included them.
Pumpkins Are Subject to the Reduced (1%) Illinois State Sales Tax.
Pumpkins are considered to be food and are therefore subject to the reduced (1%) Illinois state sales tax rate if they are sold in a condition suitable for human consumption. Local sales taxes may also apply, depending upon where the…
Colorado Mandatory Delivery Charges are Taxable
The Colorado Department of Revenue concluded that Colorado sales tax must be paid on mandatory delivery charges levied on mail order purchases from companies doing business in Colorado.
Connecticut Supreme Court Affirms Ruling on Worthless Accounts
A financial services company appealed a prior decision that stated they could not claim a refund of Connecticut sales and use tax remitted to the state on behalf of customers that eventually defaulted on automobile loans that the taxes were collected on.
New Jersey Discusses Fur Clothing and Footwear Exemption
In a press release, the New Jersey Department of Taxation discussed the newly enacted fur clothing and footwear exemption. These items were made exempt as part of the ongoing effort to conform to the provisions of the Streamlined Sales Tax…
Kansas Amends Enterprise Zone Exemption.
The Kansas Legislature extended the effective date of the retail portion of the Enterprise Zone Act to 2010.
Kansas Photographers and Photofinishers Treated as Retailers.
In a Question and Answer discussion published by the Kansas Office of Policy and Research, the state discussed the sales and use tax treatment of photographers and photofinishers
South Dakota Amends Bad Debt Deduction for Sales and Use Tax Purposes.
Effective July 1, 2005, the State of South Dakota has amended Section 10-45-30 of its tax law to read that a bad debt means the same as the term is defined in the Internal Revenue Code. According to the bill,…
Minnesota Issues Modifications to Revenue Notice No. 1991-06
The modifications to the notice state that sales of tangible personal property primarily used in a trade or business do not qualify for the isolated or occasional sales tax exemption.