Individuals who are members of hotel rewards points programs are not required to pay Florida transient rental tax on rewards points redeemed for a room or room upgrade.
Local Hotel Tax is Valid Use Tax on Travel Companies
Illinois has ruled that a 7% hotel tax imposed by Rosemont, Illinois, on room rental fees charged by online travel companies is a valid use tax and does not violate the Commerce Clause of the U.S. Constitution.
California Sales Tax Treatment of Deal-of-the-Day Instruments Discussed
The California State Board of Equalization has issued a notice detailing the sales and use tax treatment for Deal-of-the-Day Instruments (DDI). Websites such as Groupon offer DDIs which feature coupons redeemable for merchandise or service at local or national retailers.…
Daily Deals Treated as Gift Certificates in Texas
Daily deals offered through third parties, such as radio stations and social media networks, are treated as gift certificates for sales tax purposes.
Ohio Auto Dealership Denied Sales Tax Refund Due to Deduction from Customer Refund
An Ohio auto dealership is not entitled to a refund of sales tax paid on an automobile because it did not refund the entire purchase price to the customer upon the vehicle’s return. The vehicle was sold to, then returned…
Bottled Water Not Exempt from Sales and Use Tax in Louisiana
In a sales and use tax opinion, the Attorney General of Louisiana has stated that bottled water is not exempt from sales and use tax.
Illinois Strikes Down Four Public Acts in Violation of State Constitution
In the Illinois court case Wirtz v. Quinn, state tax assessments were successfully challenged as they were part of a Public Act that was in violation of the Illinois State Constitution.
Tax Situs of Drop Shipment Transactions in Missouri Discussed.
Out-of-state registered taxpayers should collect and remit sales tax on sales that are drop shipped by suppliers within and outside of Missouri to Missouri customers. Missouri law provides that sales of tangible personal property are subject to sales tax if…
Food Sold at New York Sports Stadium by Group of Related Restaurant Entities Taxable
In a recent Advisory Opinion, the New York Commissioner of Taxation and Finance determined that unheated food sold by a corporation that provides food products to sports facilities and other large-scale entertainment venues to an unrelated Concessioner are taxable because…
Aircraft Subject to Florida Use Tax
An aircraft that was purchased and repaired in California more than six months to its use in Florida will be subject to Florida use tax because the taxpayer purchased the aircraft with the intent to base and use the aircraft…
Wisconsin Supreme Court Upholds Symphony Orchestra Tickets as Taxable
The Wisconsin Supreme Court has upheld the Court of Appeals’ determination that sales of tickets to classical, pop, and youth concerts are taxable because they are considered to be primarily entertainment in nature, not educational. Although the court recognized that…
Food Products Sold From Farmers’ Markets Exempt in Mississippi
Effective April 1, 2010, food products that are grown, made or processed in Mississippi and sold from farmers’ markets that have been certified by the Mississippi Department of Agriculture and Commerce are exempt from Mississippi sales and use tax (H.B.…
Signs Sold, but Not Installed, are Taxable in Florida
When a taxpayer sells a sign for delivery or customer pick-up, but is not responsible for the installation of the sign, the sale constitutes a taxable sale of tangible personal property. The taxpayer should collect tax or an exemption certificate…
Missouri Resale Shipped to End User Exempt
According to a Letter Ruling issued by the Missouri Director of Revenue, a company that maintains a warehouse should not charge Missouri sales tax on its sales of gloves. The taxpayer drop ships gloves that are ordered from a seller…
Certain Purchases by Newspaper Exempt in Missouri
Purchases of newsprint, ink and other articles of tangible personal property used to produce newspapers are exempt from sales tax, whether the newspaper is sold at retail or given away free.
Wisconsin Discusses Sales of Food by Hospitals and Other Facilities
Sales of food and food ingredients by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities, or day care centers licensed are exempt from sales and use taxes, regardless of whether the food and food ingredients are served at the…
Wisconsin Discusses Food Provided to Restaurant Employees
Effective October 1, 2009, candy, soft drinks, dietary supplements, and prepared foods, and disposable products that are transferred with such items are exempt from sales tax only if furnished for no consideration by a restaurant to the restaurant’s employee during…
Illinois Clarifies Rate of Tax on Bakery Items
The Illinois Department of Revenue has issued a letter ruling that clarifies which rate of tax should be used by a bakery that sells both food which has been prepared for immediate consumption and…
California has Revised its Publication that Addresses the Taxability of Combination Packages and Gift-Wrapping
The California State Board of Equalization has revised its publication on gift-wrapping charges to include the taxability of gift packages with a combination of food and nonfood items. Gift packages that contain only food, such as cheese, crackers, or fruit,…
Minnesota Amends its Rules Regarding Food, Sales to Exempt Entities
The Minnesota Department of Revenue has amended its rules on food, drinks, and meals; sales to exempt entities; and charitable, religious, and educational organizations.
Virginia Assessment Properly Includes Storage Taxes in Sales Price of Fuel
In response to a taxpayer’s letter, the Virginia Department of Taxation agreed with a retail sales tax assessment imposed on the taxpayer’s business that sells gas, diesel and heating fuels. The assessment properly included both the federal leaking underground storage…
Wisconsin Revises its Tax Publication on Digital Goods
The Wisconsin Department of Revenue has revised its publication regarding the sales and use tax treatment of digital goods, specifically, newspapers and other news or information products. The sections that discuss digital books also had some small changes. In addition…
Internet and Catalog Purchases Are Taxable in Nebraska
The Nebraska Department of Revenue has issued a news release to remind taxpayer that if an internet retailer or catalog company does not collect the state and applicable local taxes, they are still responsible for paying the tax as consumer\’s use tax.
Beverages Sold with Bartending Services are Meals in Massachusetts
A liquor store, who sometimes delivers beverages to a customer and also provides related bartending services, was found subject to Massachusetts sales/meals tax. The store contended that it is not a restaurant and is not making sales of “meals” subject…