The Kansas Department of Revenue issued guidance in response to a recent question posed regarding how to collect tax on shipping charges related to taxable and non taxable goods.
New York Discusses Taxability of Internet Caf Services.
In an advisory opinion, the Commissioner of Taxation and Finance discussed the taxability of services provided by an Internet caf . The Commissioner found that the charges for Internet use were exempt from tax because they fell under the Internet…
Virginia Rules that Caterers’ Purchases of Items Transferred to Customer Exempt as Resale
In a Ruling of the Commissioner, the Virginia Department of Taxation changed their policy in regards to purchases of items by caterers. The initial policy stated that caterers could only purchase for resale items such as food and other materials…
California Rules That Popcorn Sold in Theaters is Not Taxable
In a ruling regarding a refund claim, California ruled that popcorn sold in movie theaters is not subject to California sales and use tax due to the fact that it is not intended to be sold as a “hot food…
Connecticut Discusses Safety Apparel Exemption
In a policy statement, the State of Connecticut has clarified the definition of safety apparel and provided examples of equipment that is exempt from tax.
Tennessee Court Rules That Property Used in College Food Service is Taxable
A company that used a university’s property and utilities to run the campus food service argued that it was exempt because it was an agent of the university. The court found that the university did not hold the required significant…
Massachusetts Amends Definition of Retail Sale
The definition of \”sale at retail\” or \”retail sale\” has been amended to include a provision regarding the scenario of when tangible personal property is physically delivered by an owner, to the ultimate purchaser in Massachusetts, or to any person for redelivery to the purchaser (i.e. drop shipment), the deliverer shall be deemed the vendor of the property.
Connecticut requires additional report.
Retailers that have two or more places of business for which a seller\’s permit is required and have been issued two or more seller\’s permits…
Tennessee food sales subject to varying rates.
Retail sales of prepared food are subject to the full Tennessee state sales and use tax rate of 7% plus the applicable local option rate, unlike unprepared food which is subject to a reduced state rate of 6% plus the…
Illinois requests collection by out-of-state retailers.
A resolution has been adopted urging out-of-state retailers to collect (instead of \”charge\”) sales taxes upon goods and taxable services intended for use within Illinois.
Missouri court case exempts computer purchases.
A sales/use tax exemption was granted to a mechanical contracting/engineering firm holding a valid certificate of authority, headquartered in Missouri, for purchases of computers and computer software. The company met the exemption requirements under Missouri Regulation 144.030.2(28) which states that…
Chicago tax on restaurants and eating establishments.
A new tax is imposed in Chicago for each \”place of eating\” located in the City, at the rate of .25% of the selling price of all food and beverages sold at retail by the place of eating.
Indiana clarifies refund requirements.
A new Indiana provision clarifies that a retail merchant is not entitled to a refund of Indiana sales or use taxes unless…
New Jersey sale exempt as bulk sale.
A company’s transfer of their business assets was exempt from sales and use tax. The bulk sale or transfer of any part of the whole of a transferee’s business’s assets, other than in the ordinary course of business, is deemed…
Military Meal Sales Taxable in Kansas
Businesses under contract with the Army Air Force Exchange Commission that sells meals to civilians and military personnel must charge state and local sales tax on the meals sold on military reservations in Kansas
New York boat club dues not taxable.
A not-for-profit corporation that runs a boat club has a membership fee that is not taxable in New York. The company is not a social or athletic club and its membership fees are not considered club dues subject to tax…
Kansas taxation of modular homes.
The transaction between the manufacturer and the dealer or final consumer involving the sale of modular homes will be subject to tax whereas the transaction between the dealer and the final consumer will be exempt.
New Mexico deduction for sale of food at retail stores.
Effective January 1, 2005, the New Mexico gross receipts (sales) tax on food is eliminated. The deduction can be applied to the sale of food that is not already exempt or deductible and is separately stated when purchased in a…
Florida floor covering retailer tax liability.
A Florida retailer engaged in the business of selling floor coverings at retail, known as \”cash and carry sales\”, stated the charges as a lump sum contract where the price included the charge for installation and consumable materials.
Minnesota Labor in “Off-Premise” Catering Events Not Taxable
If servers are hired to serve on catering company\’s premises, then the charges are taxable as part of the retail sale of taxable food.
Ohio retail situs rules.
In order to conform to the laws pursuant to the Streamlined Sales Tax Project, changes to the retail sales tax situsing (sourcing) rules were to take effect January 1, 2004. However, a notice was sent out from the Ohio Department…
Illinois liquor purchases must be reported.
Beginning October 2003, Line A has been added to Illinois Form ST-1, Sales and Use Tax Return, and Form ST-1-T, Illinois Sales and Use Tax Telefile Worksheet on which liquor retailers are required to report total liquor purchases. This value…
Videotapes of depositions taxable in Kansas.
Kansas treats photographers as retailers of photographs, film “and other items purchased by their customers, including items produced to the special order of the customer.” They are required to collect and remit retailers’ sales tax on the total selling price…
The Minnesota Court of Appeals has found that taxing all vending machine food sales does not violate the U.S. Constitution or any other laws
It was argued that this universal taxation was unconstitutional because other food retailers must only charge sales tax on soft drinks, candy, and prepared food.