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…
Sales by an Out-of-State Piano Vendor Deemed Taxable in Missouri
An out-of-state piano vendor’s sales to Missouri customers were found subject to Missouri use tax. When sales are approved and finalized outside Missouri, they are not subject to sales tax. However, the sales are subject to Missouri use tax in…
Ohio Adopts Rule on Negative Equity in Vehicles Sales
The Ohio Department of Taxation has adopted a regulation on the tax treatment of negative equity in a vehicle sales transaction. “Negative equity” is a term applied when a motor vehicle purchaser is trading in a vehicle with a current…
Missouri Private Jail Liable for Tax Due on Purchases of Consumables Provided to Inmates
In a Missouri court case, a private jail operator’s purchases of consumables (soap, meals and clothing) that were provided to inmates pursuant to contracts with municipalities were found taxable. The court found that in order to be eligible for the…
Missouri Discusses the Taxability of Countertop Sales and Installations
An out-of-state retailer was found liable for Missouri sales and use tax on its sales of uninstalled countertops. Conversely, the taxpayer was not required to collect tax on its sales of installed countertops to Missouri customers. The taxpayer sells home…
Texas Discusses Aircraft Trade-Ins
The Texas Comptroller indicated that an aircraft transaction that qualifies as a tax free exchange exempt from federal taxation under IRC- Section 1031 does not impact the taxability of a transaction for Texas sales and use tax. The sale or…
Aircraft Repair, Maintenance, and Replacement Items Exempt in Illinois
Illinois has amended its laws to include an exemption for aircraft repair, maintenance, and replacement items. Specifically, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance…
West Virginia Adopts Taxation of Vehicles Legislation
Effective July 1, 2009, the West Virginia Department of Transportation, Division of Motor Vehicles, enacted legislative regulations establishing the imposition of a 5% sales tax on vehicles prior to the issuance of a certificate of title. The division will collect…
Illinois Discusses Rate Hike on Candy, Grooming Products, and Soft Drinks
Illinois has released and information bulletin explaining the change in tax bases for certain classes of merchandise.
New Hampshire Tire Seller Not Liable for Tax in Massachusetts
The Massachusetts Supreme Court reversed a decision made by the Appellate Tax Board and ruled that a New Hampshire tire seller was not liable for Massachusetts sales tax on sales made to Massachusetts residents in New Hampshire. The Department argued…
Utah Finds Exempt Organization Could Not Recover Taxes Reimbursed to Employees
A Utah university sought clarification on the exempt purchase of goods by employees at point of sale. When employees made these purchases, they were charged sales tax. The university would reimburse employees for the sales tax paid. The university requested…
Texas Discusses School Fundraising and Sales by School Organizations
The Texas Comptroller of Public Accounts has released a publication detailing the taxability of sales made by schools and school organizations. The publication states that “school districts, public schools, qualified exempt private schools and bona fide chapters within a qualifying…
Trade-In Credit Not Excluded from Sales Price in Florida
Florida has issued a technical Assistance Advisement stating that store credits issued in cards or paper form for use on a subsequent purchase are not excluded from Florida sales and use tax. The taxpayer believed that the trade-ins are taken…
Texas Amends Taxation of Motor Vehicle Gifts
Effective September 1, 2009, the $10 tax imposed on the recipient of a gift of a motor vehicle only applies if 1) the gift is received from the recipient’s spouse, parent, stepparent, grandparent, grandchild, child, stepchild, sibling, guardian, or a…
Taxability of Cell Phone Discounts/Giveaways Varies by States
States vary on the treatment of cellular telephones and equipment when sold below cost and contingent on the purchase of airtime from a retailer or an independent carrier. It is a common practice for retailers to sell cellular phones for…
Transfer in Connection with a Merger is Not Taxable in Pennsylvania
A transfer of delivery trucks at the time of a merger was nor subject to Pennsylvania sales and use tax. The transfer did not involve any consideration, which is a requirement in the definition of a sale at retail. Therefore,…
Virginia Modifies Occasional Sale Exemption for Nonprofit Organizations
Virginia has modified its occasional sale exemption for nonprofit organizations that are eligible for an exemption on its purchases and otherwise eligible for the occasional sale exemption. The amendment states that the nonprofit organization will be exempt on its sales…
Food Sold by Pennsylvania Church During Community Festival Taxable
A reissue of a 2004 Letter Ruling clarifies that sales of food or beverages by a church are generally exempt from taxation…
Illinois Clarifies Auto Rebates and Dealer Incentives
The Illinois Department of Revenue has amended an Illinois retailers\’ tax regulation to clarify the sales tax treatment of automobile rebates and dealer incentives.
West Virginia Instructs Vendors to Collect Tax on Delivery Charges
West Virginia has issued a notice informing vendors that they must collect consumer sales and service tax on the total cost of delivery services, including postage and handling fees, beginning October 1, 2009. The prior policy held that actual reimbursement…
Vermont Supreme Court Rules on Movie Snacks
A movie theatre in Vermont has contested an audit assessment that included the classification of the theatre as an “eating and drinking establishment” and assessments on sales of popcorn and nacho chips. The taxpayer argued that popcorn and nacho chips…