A company that provided industrial processing services to customers but was not a retail merchant was liable for Indiana use tax on purchases of nonreturnable packaging materials.
Maryland Adds Deal of the Day Provision
Maryland has amended a sales and use tax regulation to provide that “taxable price” includes the face value of any coupon, voucher, or similar item for which the vendor can be reimbursed or compensated in any form by a third…
District of Columbia Enacts Restaurant Utilities Exemption
District of Columbia Mayor Vincent C. Gray has signed the Fiscal Year 2014 Budget Support Emergency Act of 2013, enacting a restaurant utilities exemption.
Manitoba Enacts Sales Tax Rate Changes Effective July 1, 2013
Manitoba has announced a number of sales tax rate changes, effective July 1, 2013. The following retail sales tax rate changes will change for a ten year period ending June 30, 2023. The general sales tax rate increases from 7%…
Tennessee Decreases Rate on Food and Food Ingredients
Tennessee has issued a notice informing taxpayers that the state sales and use tax rate on food and food ingredients decreases from 5.25% to 5%, effective July 1, 2013.(Important Notice No. 13-05, Tennessee Department of Revenue, June 2013)
West Virginia Phases Out Tax on Food and Food Ingredients
Effective July 1, 2013, West Virginia state and local sales and use taxes do not apply to purchases of “food and food ingredients.” A phaseout of the 6% “food tax” was initiated in 2006. State and local sales and use…
Loyalty Points Treated as Coupons in Tennessee
Loyalty points issued to customers by a wireless telecommunications company are treated as in-store (retailer) coupons, for purposes of Tennessee sales and use tax. When customers redeem points for a discount on goods or services, the points act as an…
Massachusetts Issues Guidance on Promotional Vouchers
The Massachusetts Department of Revenue has provided guidance on the tax treatment of promotional vouchers sold by companies such as Groupon and LivingSocial.
Postage Charges Taxable in Indiana
A commercial printing company was liable for Indiana sales and use tax on postage charges for delivering printed materials because postage charges are taxable delivery charges. The company charged customers for actual postage costs without any markup, separately stating the…
Freight Insurance Charges Taxable in Massachusetts
Freight insurance fees that a supplier charged to customers in connection with goods sold are included in gross receipts subject to Massachusetts sales tax. The supplier uses the proceeds from the freight insurance charges to pay for goods that are…
Utah Letter Ruling Discusses Gift Code Sales and Affiliate Nexus
Utah has issued a private letter ruling regardingthe taxability of gift codes, affiliate nexus and sales and use tax registration requirements. Out-of-state online retailers affiliated with an out-of-state company that sells gift codes to Utah consumers are not required to…
Bank Not Entitled to Illinois Sales Tax Refund
The Illinois Department of Revenue determined that a bank that financed purchases for retailers was not entitled to a refund of Illinois sales tax paid related to debts it wrote off as bad for federal tax purposes because the bank…
D.C. Amends Online Hotel Sales Tax Provisions
The District of Columbia has enacted the Fiscal Year 2013 Budget Support Act of 2012, which amends online hotel sales tax provisions.
Retailer that Contracted With Finance Companies Entitled to Bad-Debt Deduction in Michigan
A retailer that entered into private label credit card (PLCC) agreements with finance companies is entitled to a bad-debt deduction for Michigan sales taxes collected and remitted on purchases made by PLCC holders who subsequently failed to pay their credit…
Delivery Charges Exempt in Illinois if Contracted Separately
Illinois has issued a general information letter stating that the best evidence that transportation or delivery charges were agreed to separately from the selling price for sales tax exemption purposes is a separate contract for those charges.
Rhode Island Amends Clothing Regulation
Rhode Island has implemented statutory changes to the state’s sales and use tax regulation applicable to clothing. Effective October 1, 2012, clothing items with a sales price greater than $250 are subject to tax on the portion of the sales…
Tennessee Reduces Tax Rate on Food
Effective July 1, 2012, the sales and use tax rate applicable to food and food ingredients in Tennessee is reduced from 5.5% to 5.25%. The new law also requires that the local option sales tax, which under existing law can…
Revised Policy Statement Issued by the Canada Revenue Agency on GST/HST and Gift Certificates, Gift Cards
The Canada Revenue Agency (CRA) issued an updated Policy Statement 202 “Gift Certificates” in April 2012 specifically addressing the GST/HST implications related to the issuance and acceptance of gift cards. The revised policy reiterates the CRA’s view that the issuance…
West Virginia Introduces Phaseout of Grocery Food Tax
The consumers’ sales and service tax rate on food purchases and uses of food and food ingredients for human consumption is reduced from 3% to 2% on January 1, 2012. The rate will be further reduced to 1% on July…
Retailer in Massachusetts Not Entitled to Reimbursement of Sales Tax on Bad Debt
A retailer with stores in Massachusetts was not entitled to reimbursement of Massachusetts sales tax paid on uncollectible credit card sales because the sales tax was paid by the credit card issuing bank. The uncollectible purchases were made on credit…
Online Travel Company Not Liable for Philadelphia Hotel Tax
An online travel company (OTC) was not liable for Philadelphia hotel tax on the difference between the room rates it contracted with hotels and the room rates (including fees) it charged its customers because the OTC is not considered an…
Wisconsin Provides Information on “Buy One, Get One Free” Update
The Wisconsin Department of Revenue has made updates to a tax release with changes on the sales and use tax treatment of “buy one, get one free” promotions. Effective September 1, 2011, a retailer that provides a taxable product free…
Indiana Updates Guidance on Drop Shipment Forms
Indiana has issued a bulletin updating its sales tax guidance on drop shipments.
New York Issues Reminder on Clothing and Footwear Exemption
The New York Department of Taxation and Finance has issued a reminder that beginning April 1, 2012, items of clothing and footwear sold for less than $110 will be exempt from New York sales and use tax. These items were…