3 min read

The Origin of Sales & Use Tax Nexus

By Robert Dumas on Thu, Jan 23, 2020 @ 11:00 AM

Sales and use tax nexus has become a major headache for any business that sells into the United States. But what exactly is nexus for sales and use tax purposes, and where does it come from, anyway?

Topics: sales tax nexus south dakota vs. wayfair
1 min read

Don't forget physical nexus!

By Robert Dumas on Thu, Jan 16, 2020 @ 11:00 AM

Businesses who sell over the internet must pay a lot of attention to far-flung economic tax thresholds – almost all states and more than a few localities enforce them now – so it’s easy to overlook a more-obvious tripwire.

Topics: sales tax nexus south dakota vs. wayfair retail
2 min read

5 Key Pieces of Your Sales Tax Compliance Filing Process

By TaxConnex on Tue, Jan 14, 2020 @ 11:15 AM

Once you’ve determined your requirement to collect and remit sales tax, you’ve set-up a process to charge sales tax, and you have registered with each required state, you need to consider how you will manage the return filing process.  Some key areas to consider are the following:

Topics: sales tax compliance sales tax filing
3 min read

The Three Words That Define Sales Tax for Businesses: It’s a headache!

By Robert Dumas on Thu, Jan 09, 2020 @ 10:45 AM

You might be thinking, “Sales tax. Let them find me.”

Topics: sales tax nexus Now it's all on us
2 min read

Should Sales Tax Nexus Mean Anything to Me or My Business?

By TaxConnex on Tue, Jan 07, 2020 @ 11:11 AM

Sales and use tax nexus is a connection between a person or entity and a taxing jurisdiction.  Sales tax nexus is the basis for all your sales tax decisions because without sales tax nexus you have no further obligation to a state.  If you do have sales tax nexus, then you need to dig a bit deeper.  But what exactly defines when you have sales tax nexus?

Topics: sales tax nexus south dakota vs. wayfair
3 min read

Top 10 Sales Tax Developments to Look for in 2020

By Robert Dumas on Thu, Jan 02, 2020 @ 11:00 AM

If you thought 2019 was a confusing year for sales tax, wait for 2020, as more states continue to adjust their sales-tax laws.

Twenty-four states and the District of Columbia added enforcement of economic nexus in 2019, in addition to the 19 that added the burden to online retailers in 2018 after the Supreme Court overruled the physical presence rule in South Dakota v. Wayfair, Inc. More than ever, out-of-state sellers with threshold limits of sales in a given state must collect and remit sales tax.

Economic nexus laws are expected to continue to change in 2020 with updates projected from several states and with the addition of more states adopting Marketplace facilitator laws there is even more to keep watch for.  

Topics: sales tax news Now it's all on us
1 min read

2019 - Year in Review

By Robert Dumas on Tue, Dec 31, 2019 @ 11:00 AM

As we enter 2020, we have a lot to be thankful for at TaxConnex.  In fact, 2019 was a record-breaking year for our company, and we couldn’t have done it without all of our partners, employees, and clients. 

Topics: Now it's all on us
2 min read

Have increased holiday sales triggered new compliance obligations?

By Robert Dumas on Thu, Dec 19, 2019 @ 11:00 AM

Online retailers definitely have something to be smiling about this season. Cyber Monday saw Americans drop $9.4 billion. That figure is up 20% from last year’s $7.9 billion in online sales and it beat this year’s Black Friday’s sales.

Topics: sales tax compliance retail
2 min read

Localities Look to Hit Retailers with Corporate Income Tax

By Robert Dumas on Thu, Dec 12, 2019 @ 11:00 AM

As if sales tax wasn’t enough for online retailers, some states are working to make retailers pay corporate income tax as well.

The amount of corporate income taxed will be based on the retailer’s local economic activity, similar to how many assess sales tax.  Many of these new laws will kick in next year, giving retailers a Happy New Year gift of more forms to file, more money to shell out and more compliance traps to fall into.

Topics: sales tax news
2 min read

13 Things to Ask Any Potential Sales Tax Partner Before you say YES

By Robert Dumas on Thu, Dec 05, 2019 @ 10:45 AM

Another tax notice just landed on your desk. Ouch. You thought you had this solved with the “fully-integrated, simple, seamless, comprehensive, customized sales tax solution” that you paid an arm and a leg for. It sure sounded great at first. This was going to make sales tax unbelievably easy – and free up your time for more strategic stuff. So why are you still scrambling to correct errors, confirm nexus, send payments, manage tax calendars, and double check everything your provider does?

Topics: sales tax compliance
2 min read

5 Things to Be Thankful for With Sales Tax

By TaxConnex on Wed, Nov 27, 2019 @ 09:30 AM

Sales tax is confusing, but this season of thankfulness (and recent developments in the world of nexus) have created things to look forward to and be thankful for heading into the holiday season and new tax year.

Topics: sales tax compliance
1 min read

Are States Easing Off Nexus?

By Robert Dumas on Thu, Nov 21, 2019 @ 11:15 AM

Why would states go through all the trouble of enacting economic nexus to grow their tax coffers and then ease off on the restrictions - especially big states like New York and California, which were once expected to garner nine and even ten figures in tax revenue from nexus legislation?

Topics: sales tax nexus sales tax news south dakota vs. wayfair
1 min read

Three States Report Remote Sales Tax Revenue in the Wake of Wayfair

By Robert Dumas on Thu, Nov 14, 2019 @ 11:15 AM

In the 17 months since the South Dakota vs Wayfair decision, some states have begun reporting their revenues against predicted numbers. Among the first are South Carolina, Iowa and Massachusetts – and results are mixed.

Topics: south dakota vs. wayfair
1 min read

5 Ways Wayfair is Unexpectedly Impacting Vendors

By Robert Dumas on Thu, Nov 07, 2019 @ 11:15 AM

The American Catalog Mailers Association has released results of their survey regarding how remote retailers of all sizes were affected by the South Dakota v. Wayfair Inc. decision.

States predicted minimal harm to direct/online retailers from this decision but the survey results claim a different story:

Topics: south dakota vs. wayfair
1 min read

TaxConnex Selected as a Venture Atlanta 2019 Presenting Company

By Robert Dumas on Mon, Sep 16, 2019 @ 12:49 PM

I am honored to share that TaxConnex has recently been selected by Venture Atlanta to Present at Venture Atlanta 2019.  Venture Atlanta, the Southeast’s technology innovation event, is where the region’s most promising tech companies meet the country's top-tier investors.

Topics: sales tax compliance sales tax news
1 min read

Pennsylvania's Remote Seller Nexus Laws

By Brian Greer on Fri, Apr 12, 2019 @ 08:32 AM

This year the Commonwealth of Pennsylvania is joining a number of other states in the U.S. that have already defined economic nexus for its sales tax as it applies to online sellers.  

Topics: sales tax news sales tax filing
1 min read

Beaufort County's New 1% Tax Will Soon Be Put to Work on New Projects

By Brian Greer on Fri, Dec 28, 2018 @ 11:36 AM

Approximately 58% of the 65,000 voting-aged residents of Beaufort County, South Carolina have approved a 1% sales tax rate hike within the county, which will go far in helping raise some much-needed funds to help the county take on new projects.  The first projects will be getting underway soon now that the funding is in place. 

Topics: sales tax news
1 min read

Lee County, Florida Approves 1/2 Cent Sales Tax For Schools

By Brian Greer on Wed, Dec 26, 2018 @ 11:31 AM

The residents of Lee County are investing in their children and in their futures as they voted to approve a 1/2 cent sales tax increase.  These funds will go directly to schools to help pay for their ever-rising costs of educating the county's 84,000 students. 

Topics: sales tax news
1 min read

Sales Tax Rates Increased in 11 Cities Across Los Angeles County

By Brian Greer on Fri, Dec 21, 2018 @ 11:10 AM

Eleven cities in Los Angeles County saw voters approve an increase in sales tax rates during recent elections.  The election results mirror a trend in the state that has resulted in significantly higher sales tax rates over the past few years.

Topics: sales tax news
1 min read

Topeka, Kansas Half Cent Sales Tax Extends For Another Decade

By Brian Greer on Wed, Dec 19, 2018 @ 11:04 AM

Topeka residents have voted to extend the city's 1/2% sales tax for another 10 years.  Residents cite the main reason for allowing the 1/2% sales tax to continue is in hopes of wrapping up ongoing road work in the coming years.  

Topics: sales tax news
1 min read

Forsyth County Voters Reject Quarter Percent Sales Tax Increase

By Brian Greer on Mon, Dec 17, 2018 @ 10:56 AM

Forsyth County, GA voters have overwhelmingly rejected the proposed sales tax increase that would raise sales taxes 1/4% with 68% of voters saying they are against the increase in tax.  The new sales tax was supposed to help pay for much needed new county courthouse facilities and the leftover money was going to be used to help improve the school system within the county. 

Topics: sales tax news
2 min read

Ohio is First State to Accept Bitcoin for Business Taxes

By Brian Greer on Thu, Dec 13, 2018 @ 10:48 AM

The state of Ohio broke new ground for cryptocurrency when it recently announced that businesses can pay taxes with Bitcoin. 

Topics: sales tax news
2 min read

Redwood City Seeks an Additional Sales Tax Increase

By Brian Greer on Tue, Nov 06, 2018 @ 01:57 PM

Redwood City, California will be asking voters for permission to increase the city's sales tax rate by another half of a cent today as residents hit the ballot boxes for Election Day.  The proposition will allow the city to raise their already rather-high sales taxes from 8.75% to 9.25%.  

Topics: sales tax news
2 min read

Sales Tax News - November 5, 2018

By Brian Greer on Mon, Nov 05, 2018 @ 09:48 AM

Sales Tax From Restaurants Generate Huge Revenue for Waco

Nine new restaurants have opened their doors in Waco, Texas over the past year.  There are now 119 full-service eateries in the city.  That number is up from 110 in October of last year and 103 from October of 2013.  

Topics: sales tax news
1 min read

North Carolina Now Collecting Sales Tax Online

By Brian Greer on Fri, Nov 02, 2018 @ 10:27 AM

Effective November 1, remote sellers including many online businesses are required to collect sales tax from their customers.  This means that shopping online is going to cost the average consumer a bit more money now than it did in the past.  This comes after the US Supreme Court ruling in June of this year in the case of South Dakota vs. Wayfair.

Topics: sales tax news
2 min read

Colorado Town Eyes Sales Tax Increase for New Recreation Center

By Brian Greer on Thu, Nov 01, 2018 @ 10:21 AM

Residents of Grand Junction, Colorado, have been asking for a recreation center for years.  The city's leaders say they can have it -- but only if they approve a sales tax.  According to an article from KJCT8, the Grand Junction City Council recently voted to place the sales tax proposal on their next municipal ballot, next April.  

Topics: sales tax news
2 min read

Sales Tax News - October 30, 2018

By Brian Greer on Tue, Oct 30, 2018 @ 10:10 AM

911 Sales Tax in Lincoln Expires

A quarter-cent voter-approved sales tax ended on Monday in Lincoln.  The sales tax raised $38.14 million for the city's new emergency radio system and new fire stations.  The sales tax was approved in April 2015 and lasted for three years.  

Topics: sales tax news
1 min read

Sales Tax News - October 26, 2018

By Brian Greer on Fri, Oct 26, 2018 @ 10:01 AM

Okaloosa County to Review Possible Projects for Potential Sales Tax Collections

Topics: sales tax news
2 min read

Plans to Increase Rainbow City's Sales Tax Rate Falls Short

By Brian Greer on Wed, Oct 24, 2018 @ 01:40 PM

Monday morning's 4-2 vote in Rainbow City, Alabama brought the idea of a 1% sales tax increase to a halt. This plan had been discussed before and was posted online by it's originator and city council member Tim Ramsey on social media platforms.  The idea was to increase Rainbow City's sales tax to 10% like many of the neighboring cities.

Topics: sales tax news
1 min read

Georgia County Invests Sales Tax Collections in Public Safety

By Brian Greer on Tue, Oct 23, 2018 @ 09:50 AM

DeKalb County, Georgia is using $8 million in sales tax funding to purchase safety vehicles and equipment, according to an article from Decaturish.  The sales tax was approved by voters in November, 2017, for infrastructure improvements.  The purchases to be made include:

Topics: sales tax news
1 min read

Sales Tax News - October 19, 2018

By Brian Greer on Fri, Oct 19, 2018 @ 09:44 AM

Sales Taxes Not Going to NC Technical College

Topics: sales tax news
1 min read

NOMAD States Balk at Online Sales Tax

By Brian Greer on Wed, Oct 17, 2018 @ 09:26 AM

The Wayfair ruling earlier this year opened the door to states to require out-of-state sellers to collect and remit the sales tax due.  However, there has been backlash from states that don't have a state level sales tax - the so called NOMAD states of New Hampshire, Oregon, Montana, Alaska, and Delaware.

Topics: sales tax nexus
2 min read

Pasadena Plans To Give Schools A Portion Of Sales Tax Revenue

By Brian Greer on Tue, Oct 09, 2018 @ 09:40 AM

Voters in Pasadena, California will have two sales tax measures to consider on the upcoming November 6 ballot.  The first ballot measure will seek the permission of voters to increase the city's sales tax by 0.75 percent.  The second issue is whether one-third of this additional tax revenue should be directed toward Pasadena Unified Schools. 

Topics: sales tax news
1 min read

New Bill Could Further Simplify Sales Tax Collection for Remote Sellers

By Brian Greer on Fri, Oct 05, 2018 @ 09:31 AM

A bipartisan bill was introduced in response to the US Supreme Court's Wayfair decision this past June. In that decision, the Supreme Court ruled that certain remote sellers should remit taxes for multiple states, not just their home state.  However, with the massive complexity of tax law surrounding each individual state, the Supreme Court advised Congress to simplify things.

Topics: sales tax nexus
1 min read

Conflict In Wyoming Results From $1.7 Million Sales Tax Mistake

By Brian Greer on Wed, Oct 03, 2018 @ 02:30 PM

Dan Noble, Director of the Wyoming Department of Revenue, says that a sales tax mistake made by a vendor in Sweetwater County was an innocent one that provided the vendor with no advantage.  The business mistakenly reported taxes to neighboring Natrona County.  Noble says that the correct amount of sales tax was collected from the vendor but was paid to the wrong county. 

Topics: sales tax news
1 min read

Bipartisan Bill Seeks To Slow States' Ability To Collect Sales Tax From Online Retailers

By Brian Greer on Mon, Oct 01, 2018 @ 02:23 PM

A bill introduced by Congress will seek to put the brakes on the ability of states to require remote sellers to collect sales tax on transactions completed through the internet.  The bill is in response to the June Supreme Court ruling that requires remote sellers that do business with residents of the state but do not maintain a physical presence in the state to collect the sales tax due.

Topics: sales tax nexus
2 min read

Police Union Fights Mayor On Proposed Sales Tax Increase In Grand Island, Nebraska

By Brian Greer on Fri, Sep 28, 2018 @ 09:34 AM

A proposal to increase the sales tax in Grand Island, Nebraska has restarted tensions between a police union and the mayor of the city.  A message posted on the Facebook page of the Nebraska Fraternal Order of Police Lodge #24 expressed the union's displeasure with what the union deems as a misrepresentation of their stance by Mayor Jeremy Jensen. 

Topics: sales tax news
1 min read

States Lose Big on Sales Tax from Smuggled Cigarettes

By Brian Greer on Tue, Sep 25, 2018 @ 09:25 AM

According to a recent op-ed written by Alcohol and Tobacco Enforcement Branch chief, Joe Fox, and published in the Washington Post, states across the nation are losing billions of dollars in tax due to cigarette smuggling.  Here are the details.

Topics: sales tax news
1 min read

Mississippi Hunters Enjoy 2nd Amendment Sales Tax Holiday

By Brian Greer on Fri, Sep 21, 2018 @ 09:15 AM

According to a report from WLOX, Biloxi's ABC news affiliate, hunters in Mississippi received a bit of a break on Labor Day weekend, with a sales tax holiday on firearms, ammunition, and hunting supplies.  Passed by the Mississippi legislature in 2014, the 2nd Amendment sales tax holiday passes on a 7 percent savings to sportsmen on various supplies.  The tax break applied not only to items purchased in-store, but also to those purchased by mail, telephone, and internet, provided they were bought and paid for during the holiday, which lasted from Friday morning through Sunday at midnight.

Topics: sales tax news
1 min read

St. Louis County Residents Vote On Sales Tax Increase To Benefit St. Louis Zoo

By Brian Greer on Wed, Sep 19, 2018 @ 09:09 AM

Residents of St. Louis County, Missouri will decide in November whether or not to approve a tax increase for the benefit of the St. Louis Zoo.  The proposed sales tax would fund both cosmetic and functional upgrades to the zoo.  There are also plans to construct a new breeding facility and talks of an adventure park in the northern portion of the county. 

Topics: sales tax news
2 min read

Sales Tax News - September 17, 2018

By Brian Greer on Mon, Sep 17, 2018 @ 08:05 AM

New Hampshire Wrangles with Online Sales Taxes

Topics: sales tax news
1 min read

Kansas City Residents Angered By Closed Door Meetings On Sales Tax Revenue

By Brian Greer on Fri, Sep 14, 2018 @ 04:09 PM

A five-member board in Kansas City that is tasked with overseeing a sales tax initiative for the city's East Side area is drawing criticism from the public.  The source of public displeasure is a decision by the board to not allow either citizens or members of the media to attend a recent meeting on the matter. 

Topics: sales tax news
2 min read

Ohio Lawmakers Want Voter Approval Before County Sales Tax Increases

By Brian Greer on Wed, Aug 29, 2018 @ 09:21 AM

Republican lawmakers in Ohio produced a bill to the General Assembly that seeks to require voter approval before any proposed county sales tax increases can be enacted.  The proposal has some county officials nervous due to the budget cuts that have already taken place at the county level at a time when funding needs have increased. 

Topics: sales tax news
1 min read

Sales Tax News - August 27, 2018

By Brian Greer on Mon, Aug 27, 2018 @ 09:11 AM

New Sales Tax Includes Kentucky Non-Profits

Topics: sales tax news
2 min read

Louisiana Facing Budget Shortfall Extends State Sales Tax Hike

By Brian Greer on Fri, Aug 24, 2018 @ 10:25 AM

Residents of Louisiana were not pleased in 2016 when their state legislature put in place a "temporary" state sales tax increase.  The word temporary often has a different meaning to state legislators than it does to the general public.  As of last month, lawmakers in the state decided to partially extend the increase by putting the state sales tax rate at 4.45% until 2025 citing budgetary shortfalls in the state government.

1 min read

Manatee County Could Owe Sarasota County Millions in Sales Tax

By Brian Greer on Tue, Aug 21, 2018 @ 07:54 AM

A possible bookkeeping error by the state of Florida may have caused revenue collected near the University Parkway retail area to go to the wrong county.  The Manatee County Commission was notified of the surprising news during a budget meeting on Tuesday.  The Florida Department of Revenue notified Manatee County finance officials that the county may owe Sarasota County $4 million in sales tax.

Topics: sales tax news
1 min read

Sacramento City Council Seeks Voter Approval For One-Cent Sales Tax Increase

By Brian Greer on Fri, Aug 17, 2018 @ 02:05 PM

A ballot measure added by the Sacramento City Council to the November ballot will seek voter approval for a one percent sales tax increase in the city to fund the maintenance of basic city services, and provide financing for economic and community development. 

Topics: sales tax news
1 min read

Sales Tax News - August 14, 2018

By Brian Greer on Tue, Aug 14, 2018 @ 07:56 AM

Barrington Voters to Decide on Sales Tax

Topics: sales tax news
1 min read

Georgia Governor Nathan Deal Suspends Sales Tax On Jet Fuel

By Brian Greer on Fri, Aug 10, 2018 @ 09:58 AM

The governor for the state of Georgia, Nathan Deal, made the announcement on Monday that he would suspend the collection of the state-imposed sales tax on jet fuel.  The move by Deal is in line with an earlier promise made to Delta Air Lines and other companies that use jet fuel for business operations that the General Assembly chose to reject during the 2018 legislative session. 

Topics: sales tax news
1 min read

Alabama's Internet Sales Tax Plan

By Brian Greer on Wed, Aug 08, 2018 @ 09:42 AM

The Alabama Department of Revenue set an Oct. 1 deadline for remote sellers with more than $250,000 in annual sales to sign up for the Alabama Simplified Sellers Use Tax Program (SSUT) and start collecting sales tax.  Additionally, Marketplace facilitators will be required to sign up for SSUT and start collecting on behalf of their third-party sellers as of January 1, 2019.

Topics: sales tax nexus sales tax news
1 min read

Wisconsin Announces Oct. 1 to Begin Internet Sales Tax Collection

By Brian Greer on Mon, Jul 30, 2018 @ 02:53 PM

Moving fast, Wisconsin is one of the first states in the US set to require out-of-state businesses to collect sales tax.  Wisconsin's levy begins Oct. 1.  The US Supreme Court decision in South Dakota v. Wayfair Inc. has provided states the option to require out-of-state businesses to collect and remit sales tax including those businesses that sell over the Internet.

Topics: sales tax nexus sales tax news
2 min read

Recent Supreme Court Decision Does Not Mandate Immediate Sales Tax Collection

By Brian Greer on Wed, Jul 25, 2018 @ 08:55 AM

The South Dakota v. Wayfair Inc. sales tax decision by the US Supreme Court does not mean all online vendors must begin collecting sales tax immediately.

Topics: sales tax nexus
1 min read

Arizona Joins List Of States Shuffling To Adjust To New Sales Tax Codes

By Brian Greer on Mon, Jul 23, 2018 @ 08:36 AM

Lawmakers in the state of Arizona are extremely interested in the possibility of increased revenue that may be available due to the recent Supreme Court sales tax ruling but are adamant in their stance that they do not intend to allow the situation to become an added burden to its citizens. 

Topics: sales tax nexus sales tax news
2 min read

Sales Tax News - July 18, 2018

By Brian Greer on Wed, Jul 18, 2018 @ 09:24 AM

Changes to Louisiana Sales Tax Start July 1

Topics: sales tax news
1 min read

Georgia's TSPLOST

By Brian Greer on Mon, Jul 16, 2018 @ 09:17 AM

Some Georgia counties approved while others rejected a Transportation Special Purpose Local Option Sales Tax (TSPLOST) in the May election.

Topics: sales tax news
1 min read

Sacramento Mayor Proposes Local Sales Tax Hike

By Brian Greer on Thu, Jul 12, 2018 @ 09:06 AM

Sacramento has had a half percent sales tax since 2012, but this tax is set to expire next year.  The mayor wants to not just replace it, but raise it to 1 percent and make the tax permanent.

Topics: sales tax news
1 min read

California Anxious To Collect Hundreds Of Millions In Sales Tax Revenue Resulting From Recent Change In Federal Law

By Brian Greer on Mon, Jul 09, 2018 @ 08:55 AM

The state of California had already undertaken measures of their own to collect more sales tax from online retailers a few months before a recent ruling from the Supreme Court provided states with the authority to do so. 

Topics: sales tax nexus sales tax news
1 min read

New Hampshire Governor Chris Sununu Plans Push Back Against Supreme Court Internet Sales Tax Ruling

By Brian Greer on Thu, Jul 05, 2018 @ 10:55 AM

The state of New Hampshire is pushing back against a recent ruling by the United States Supreme Court that determined e-commerce websites will now be responsible for collecting sales tax from out of state customers. 

Topics: sales tax nexus
1 min read

Supreme Court Ruling On Internet Sales Tax Could Become Major Headache For Smaller E-Commerce Websites

By Brian Greer on Tue, Jul 03, 2018 @ 09:55 AM

The recent ruling by the United States Supreme Court that will now require online retailers to collect sales tax on all applicable transactions is expected to cause more than just a few headaches for many smaller e-commerce websites.  The decision by the court reverses a longstanding policy of not requiring companies to collect sales tax on sales to customers residing in a state in which the company maintains no physical presence. 

Topics: sales tax nexus
1 min read

Sacramento Sales Tax Seeks to Improve Impoverished Areas

By Brian Greer on Fri, Jun 29, 2018 @ 08:11 AM

The Sacramento Bee reported on June 7 that Sacramento is trying to pass a half-cent sales tax to improve the impoverished areas.  This increase would be in addition to the proposal to permanently extend the Measure U half-cent sales tax.

Topics: sales tax news
2 min read

Sales Tax Increase to Benefit Transportation in Broward County

By Brian Greer on Wed, Jun 27, 2018 @ 09:17 AM

The citizens of Broward County, Florida may find themselves paying more in sales tax after November 6.  A 1% sales tax increase has been proposed which would mean they would be paying 7% instead of 6% on their purchases.  According to the SunSentinel, the increase in taxes will initially raise $357 million dollars a year to improve transportation.

Topics: sales tax news
1 min read

Hoover Alabama Sales Tax Increase

By Brian Greer on Mon, Jun 25, 2018 @ 08:55 AM

The city of Hoover, Alabama may see its first sales tax increase in almost a quarter century.  Mayor Frank Brocato recently proposed that the city raise its sales and lodging tax in order to help reconcile a budget crisis.  If the motion is approved, the estimated additional revenue will generate approximately $20 million for the city of Hoover. 

Topics: sales tax news
1 min read

Navajo Nation Sales Tax Increase

By Brian Greer on Thu, Jun 21, 2018 @ 07:47 AM

The Navajo Nation—mostly found in northeastern Arizona, stretching just into southern Utah and western New Mexico—is set to increase its sales tax from 5% to 6% starting July 1st, 2018.  This is the first general sales tax rate change for the Navajo Nation in five years, and is being enacted to increase funding for their Department of Fire and Rescue Services. 

Topics: sales tax news
1 min read

Sales Tax News - June 18, 2018

By Brian Greer on Mon, Jun 18, 2018 @ 11:55 AM

Arkansas City Wants Hotels.com To Pay Local Sales Taxes

Topics: sales tax news
1 min read

Iowa to Charge Sales Tax on Ride Sharing Services

By Brian Greer on Thu, Jun 14, 2018 @ 03:05 PM

The recent signing of a tax bill by Iowa Governor Kim Reynolds that extends the state's six percent sales tax requirement to include taxi and ride-sharing services has drawn the ire of drivers in the state.

Topics: sales tax news
1 min read

Sales Tax News - June 12, 2018

By Brian Greer on Tue, Jun 12, 2018 @ 07:55 AM

Elk River Sales Tax Could Result in Nearly $2 Million a Year

1 min read

New Jersey Governor Reinstates Program That Lowers Sales Tax

By Brian Greer on Fri, Jun 08, 2018 @ 08:55 AM

New Jersey State Governor Phil Murphy recently signed into law a bill that renews sales tax cuts for five towns in the state.  The measure taken by Governor Murphy effectively reverses a decision made last year by former Governor Chris Christie to nix a program that brought sales tax relief to these five jurisdictions. 

Topics: sales tax news
1 min read

Hurricane Sales Tax Holiday in Florida Runs Through June 7

By Brian Greer on Tue, Jun 05, 2018 @ 01:58 PM

Residents in Florida will be able to stock up on hurricane supplies while saving big.  The sales tax holiday in Florida started June 1, and gives residents a chance to prepare for future hurricanes. 

Topics: sales tax news
2 min read

Sales Tax Increase in Hamilton County Ohio

By Brian Greer on Thu, May 31, 2018 @ 03:25 PM

Hamilton County, Ohio, home to the Cincinnati metropolitan area, is considering raising sales tax.  The county commissioners would like to raise the tax by 0.25 cents in order to raise $38 million, which they say is desperately needed.  The county commissioners are currently deciding on whether to raise the tax or not, and if so, whether to do it by direct vote or leave it up to the people at the polls.  A recent editorial in Cincinnati.com discusses the details:

Topics: sales tax news
1 min read

Kansas Sales Tax Changes

By Brian Greer on Tue, May 29, 2018 @ 01:55 PM

A number of changes to sales tax rates in Kansas are set to take place on July 1st, 2018.  Three counties will see their sales taxes change, affecting thirty-two cities and towns.

Topics: sales tax news
1 min read

New Sales Tax in Oklahoma City

By Brian Greer on Thu, May 24, 2018 @ 02:28 PM

As of January 1st, 2018, Oklahoma City instituted a new permanent sales tax hike of 1/4 cent.  According to the city's website, this means that a shopper pays an extra 25 cents in tax on a $100 purchase.  This is not a substantial hike but what makes it significant is that this is the first sales tax hike the city has instituted since 1976 and it is expected to raise the annual revenue by $26 million. 

Topics: sales tax news
1 min read

West Virginia Local Sales Tax Changes

By Brian Greer on Tue, May 22, 2018 @ 08:55 AM

Although the state sales tax in West Virginia is a relatively high six percent, this is generally balanced out by a lack of local sales taxes.  At the moment, out of two hundred and thirty municipalities, fewer than twenty percent impose an additional sales tax.  For a small number of residents, that rate is set to rise on July 1st, 2018, when the towns of Athens, Davis, Elizabeth, and Elkins all begin a one percent local sales tax (for a combined rate of seven percent).

Topics: sales tax news
1 min read

TrumpStore.com to Collect Sales Tax in New York and Virginia

By Brian Greer on Fri, May 18, 2018 @ 09:50 AM

An online store operated by the Trump Organization has initiated the process to collect sales tax on orders from customers that live in the states of Virginia and New York.  This brings the number of states in which TrumpStore.com collects sales tax to four as the tax was already collected for orders purchased by Florida and Louisiana residents.  The online merchant sells a variety of items stamped with the Trump brand including baseball caps and polo shirts.

Topics: sales tax news
2 min read

Utah's Silent Crackdown Could Mean More Online Taxes to Come

By Brian Greer on Wed, May 16, 2018 @ 12:55 PM

Last week, it was reported that Utah is making a move towards collecting sales taxes for online purchases for the first time.

Topics: sales tax news
2 min read

Sales Tax News - May 14, 2018

By Brian Greer on Mon, May 14, 2018 @ 09:25 AM

Burnsville Considers Local Sales Tax

2 min read

Governor Charlie Baker Wants More Discussions Around Massachusetts Sales Tax

By Brian Greer on Thu, May 10, 2018 @ 11:55 AM

Massachusetts Governor Charlie Baker was recently asked to elaborate on comments he made regarding the reduction of state sales tax while present at the Republican state convention.

Topics: sales tax news
2 min read

How Soon Will Internet Retailers Collect Sales Tax?

By Brian Greer on Tue, May 08, 2018 @ 12:04 PM

According to the U.S. Commerce Department, 14% of U.S. retail sales occurred over the internet in 2017.  Consumers spent nearly $455 billion dollars buying online products, a 16% increase over 2016.  In other words, online shopping continues to grow at a healthy pace.  This is why all eyes are on a pending United States Supreme Court case, South Dakota v. Wayfair, Inc.

1 min read

Sales Tax News - April 30, 2018

By Brian Greer on Mon, Apr 30, 2018 @ 08:55 AM

Oregon County Looks to Place Tax on Marijuana Sales

Topics: sales tax news
1 min read

Texas Sales Tax Amnesty Begins May 1

By Brian Greer on Fri, Apr 27, 2018 @ 02:55 PM

As first announced last December by Comptroller of Public Accounts Glenn Hegar, the Texas Tax Amnesty Program will begin Tuesday, May 1, 2018.  The program offers a limited opportunity to certain delinquent taxpayers to bring their tax accounts into compliance with state tax law without incurring penalties and interest on any amounts due to the state.  Amnesty applies to tax periods prior to Jan. 1, 2018, and only includes those amounts that have not been previously reported to the Comptroller's office.  The amnesty program will continue until Friday, June 29, 2018.

Topics: sales tax news
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Denver Looks to Raise Sales Tax for Mental Health Care

By Brian Greer on Wed, Apr 25, 2018 @ 07:55 AM

A Democrat state lawmaker and a group of health care advocates in Denver are looking to add a .25 percent sales tax increase that would help raise money for mental health care and substance abuse treatment within the city of Denver.  The health care advocates claim the city is lacking when it comes to funding these type of programs. 

Topics: sales tax news
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Sales Tax News - April 19, 2018

By Brian Greer on Thu, Apr 19, 2018 @ 02:55 PM

Sales Tax Increase Proposed at Tallassee (Alabama) Council Meeting

Topics: sales tax news
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Oklahoma Sales Tax Bill Makes Way Through House

By Brian Greer on Tue, Apr 17, 2018 @ 08:55 AM

The Oklahoma House of Representatives approved a last-minute measure earlier this month that would require third-party retailers conducting business online to collect sales tax when selling their wares to Oklahoma residents.

Topics: sales tax nexus sales tax news
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New Hampshire Pushes Back Against Proposed Online Sales Tax Expansion

By Brian Greer on Fri, Apr 13, 2018 @ 01:55 PM

Both the House and Senate for the state of New Hampshire stand in allegiance against the proposed expansion of online sales tax.  The matter is set to be heard by the U.S. Supreme Court later this month.

Topics: sales tax nexus sales tax news
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Sales Tax News - April 11, 2018

By Brian Greer on Wed, Apr 11, 2018 @ 02:05 PM

Salt Lake City Seeks Input From Residents About Higher Taxes

Topics: sales tax news
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Residents of Kentucky Set to Pay Sales Tax on Certain Services

By Brian Greer on Mon, Apr 09, 2018 @ 10:55 AM

Residents of the state of Kentucky may for the first time be faced with a 6% sales tax on services such as lawn maintenance, car repairs, pet grooming services, and the like.  The proposed taxes are part of a tax code overhaul plan by state Republicans that is forecasted to produce $480 million dollars for the state over the next two years.

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Etsy Will Collect Sales Tax in Pennsylvania and Washington

By Brian Greer on Thu, Apr 05, 2018 @ 08:05 AM

The e-commerce website Etsy has announced that they will collect sales tax on all purchases made by customers residing in the states of Pennsylvania and Washington.  The decision on the part of Etsy follows a similar move by Amazon a month ago.

Topics: sales tax nexus sales tax news
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President Trump Joins the Sales Tax Fight Against Amazon

By Brian Greer on Tue, Apr 03, 2018 @ 01:12 PM

President Trump voiced his displeasure recently with the policy of Amazon to not collect sales taxes on goods sold by third-party sellers.

Topics: sales tax nexus sales tax news
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Sales Tax News - March 26, 2018

By Brian Greer on Mon, Mar 26, 2018 @ 08:35 AM

Des Moines Sales Tax Increase Fails

Topics: sales tax news
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Marketplace Collection in Pennsylvania is Next

By Brian Greer on Thu, Mar 22, 2018 @ 10:55 AM

Amazon recently confirmed its plans to collect sales tax on all orders shipped to Pennsylvania, according to CNBC, in an effort to be on the same playing field as physical stores.  This policy will be enacted on April 1st, and comes shortly after the establishment of this policy in Washington - where the company is headquartered.  Prior to this new policy, Amazon did collect sales tax on items it sold directly, but didn't handle taxes on third-party sales, explains Lancaster Online.

Topics: sales tax news
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More Changes to Illinois' Sales Tax Looms

By Brian Greer on Tue, Mar 20, 2018 @ 07:05 AM

Citizens in Illinois are already accustomed to one of the highest sales tax rates in the nation, but they may soon be moving up the list by another notch or two in the near future, as lesser-taxed counties take advantage of a law signed by former governor Pat Quinn.  Currently, the Tax Foundation ranks the state #7 in the US, based upon an average of the sales tax rate in each county.  Some counties have enacted higher sales tax rates than others, particularly those near Chicago.  Other counties may soon be joining them.

Topics: sales tax news
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Take Me Out to the Sales Tax Game

By Brian Greer on Fri, Mar 16, 2018 @ 01:55 PM

With spring training starting up, most baseball teams are worried about line-ups, batting averages, and 100-mile-per-hour fast balls.  But the Cincinnati Reds management has one more thing to worry about: sales tax.  The Ohio Department of Taxation claims the team owes $88,000 in unpaid sales tax from 2008-2010 on bobblehead dolls and other items the team gave out as promotional items to attract fans to games that otherwise might have low attendance.  Under Ohio law, companies do not have to pay tax on items that they are simply going to resell.  Based on that rule, the team refused to pay, claiming that they were simply reselling the bobblehead dolls of popular players, and the price was included in the ticket.  According to the team's request for review to the Ohio Supreme Court, the value of the promotional item substituted for the "value" of the less-popular game.

Topics: sales tax news
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Sales Tax News - March 13, 2018

By Brian Greer on Tue, Mar 13, 2018 @ 08:55 AM

Los Gatos Voters May Face Sales Tax Hike

Topics: sales tax news
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Toys "R" Us Closing Stores Amidst Competition from Amazon

By Brian Greer on Mon, Mar 12, 2018 @ 03:15 PM

From coast to coast, momentum continues to build for the required collection of sales taxes by online retailers, as the unfair advantage such firms hold over brick-and-mortar outlets becomes more and more clear.  In Boise this week, a sales tax bill that already passed the state House 46-21 was cleared by a Senate panel to move to that body's floor for a vote.  The bill would require e-tailers that transact at least $10,000 in Idaho sales to collect sales taxes.  An interesting caveat in the bill limits enforcement to firms that have an affiliation with an existing Idaho business, however.  Thus, this is not a blanket rule.  The bill's sponsor has stated that leveling the playing field for Idaho businesses is the main goal of the proposed law.

Topics: sales tax nexus
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Sales Tax News - March 9, 2018

By Brian Greer on Fri, Mar 09, 2018 @ 02:05 PM

Booneville Sales Tax Receipt Nears $65,000

Topics: sales tax news
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Kansas Mulls Lowering Food Sales Tax

By Brian Greer on Tue, Mar 06, 2018 @ 09:01 AM

Kansas Sales Tax

As it stands today, a Kansan shopping for groceries can expect to pay as much as 11% in food sales taxes in certain areas of the state.  The Kansas state sales tax accounts for 6.5% of this total.  In the state Senate, proponents are arguing for a constitutional amendment to reduce this rate.  These proposals come while Kansas struggles to balance its budget.  The state Supreme Court recently ordered, for the fifth time in four years, for increased budgeting for public schools.

Topics: sales tax news
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Georgia Plans to Tax Netflix Streaming

By Brian Greer on Fri, Mar 02, 2018 @ 09:55 AM

Local and state governments everywhere have been trying to update their existing tax code to keep up with today's changing technology and consumer offerings.  In one of the latest moves, Georgia is planning to add a sales tax to media streaming giant Netflix, among others.

Topics: sales tax news
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Sales Tax Reductions in New Jersey

By Brian Greer on Wed, Feb 28, 2018 @ 03:05 PM

In New Jersey, 2018 began with good news for consumers.  The state sales tax decreased again, from 6.875% to 6.625%.  This was the second phase of a planned decrease to the sales tax.  In 2017, New Jersey implemented the first decrease from 7% to 6.875%.  This decrease occurred as part of a deal made at the end of 2016.  Lawmakers agreed to a sale tax decrease because there was a gasoline price hike of 23 cents adopted at the same time.  To compensate for the rise in gas prices, lawmakers implemented a plan to lower the sales tax rate over two years.  The increase gas price was significant because it provided more funding for road repair and other transportation department infrastructure needs.

Topics: sales tax news
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Sales Tax News - February 26, 2018

By Brian Greer on Mon, Feb 26, 2018 @ 11:05 AM

Sales Tax Holiday May Become Permanent

Topics: sales tax news
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Sales Tax News - February 23, 2018

By Brian Greer on Fri, Feb 23, 2018 @ 08:58 AM

Long-Term Sales Tax Increase Vetoed

Topics: sales tax news
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Sales Tax News - February 21, 2018

By Brian Greer on Wed, Feb 21, 2018 @ 02:05 PM

Lt. Governor in Oklahoma Narrows List of Sales Tax Exemptions

Topics: sales tax news
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Sales Tax News - February 19, 2018

By Brian Greer on Mon, Feb 19, 2018 @ 02:55 PM

Tucson Considers Sales Taxes To Fix Local Roads

Topics: sales tax news
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Should Sales Tax Apply to Health Clubs?

By Brian Greer on Thu, Feb 15, 2018 @ 10:56 AM

Maine does not apply sales tax to gym memberships, but it is not from the lack of trying.  Governor LePage proposed imposing such a tax in the 2018-19 state budget, but gym owners and their patrons successfully pushed back.  

Topics: sales tax news
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Iowa Plans to Tackle Online Sales Tax Collections

By Brian Greer on Mon, Feb 12, 2018 @ 08:03 AM

After the US Congress successfully passed the Tax Cuts and Jobs Act, which was signed into law by President Trump in December, the Iowa Legislature will begin work on state tax reform.  One of the major issues that will be discussed is sales tax on e-commerce transactions.

Topics: sales tax nexus sales tax news
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Soda Tax - An Idea That Keeps Bubbling Along

By Brian Greer on Thu, Feb 08, 2018 @ 03:05 PM

Whether you are a member of the Pepsi generation or are in the mood for a can of the "Real Thing," it's going to cost you more in some major American cities.  These municipalities have enacted a "soda tax," adding one to two cents per ounce to the cost of a variety of drinks in order to discourage people from drinking high calorie beverages.  Here is the list of places that do not want to make it easy for you to "Do the Dew": 

Topics: sales tax news
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Sales Tax News - February 6, 2018

By Brian Greer on Tue, Feb 06, 2018 @ 07:45 AM

Sales Tax Collections in Lincoln to Pay for Four Fire Stations

Topics: sales tax news
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Sales Tax News - February 2, 2018

By Brian Greer on Fri, Feb 02, 2018 @ 09:37 AM

Pasadena, California Considering A Sales Tax Hike

Topics: sales tax news
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Sales Tax News - January 31, 2018

By Brian Greer on Wed, Jan 31, 2018 @ 08:28 AM

Midland Sees Seventh Straight Month of Positive Sales Tax Collections

Topics: sales tax news
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Amazon Turns Over Third Party Sellers to Massachusetts

By Brian Greer on Wed, Jan 24, 2018 @ 09:52 AM

Amazon has been battling with Massachusetts for months but will need to turn over the names and FEINs of third party sellers in the state.  In addition, Amazon will be required to supply the value of the inventory stored in the state for each third-party seller.

Topics: sales tax news
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Sales Tax News - January 23, 2018

By Brian Greer on Tue, Jan 23, 2018 @ 09:05 AM

Little Falls Considers Local Option Sales Tax

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Sales Tax in the Cross Hairs as the US Supreme Court Accepts Case

By Brian Greer on Fri, Jan 19, 2018 @ 07:35 AM

You've likely seen by now that the U.S. Supreme Court has agreed to review a case that could have significant impact in the sales tax world.  Specifically, the Court is set to review a case that would require businesses to collect state and local sales tax regardless of their physical presence in a state. The total taxes amount to billions and the Court will be revisiting a 26-year-old case that has largely allowed the internet to be a tax-free zone.

Topics: sales tax nexus sales tax news
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Sales Tax News - January 18, 2018

By Brian Greer on Thu, Jan 18, 2018 @ 08:15 AM

Geneva, Illinois to Add Sales Tax Hike to Ballot

Topics: sales tax news
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Noem and Jackley Look to Solve Online Sales Tax Problem

By Brian Greer on Tue, Jan 16, 2018 @ 04:30 PM

United States Representative Kristi Noem is working to pass a bill that would require online sellers to collect sales tax. Noem said she received a commitment from President Donald Trump in a recent meeting that also included Vice President Mike Pence, Treasury Secretary Steven Mnuchin, and other White House staffers

Topics: sales tax nexus sales tax news
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Retail Cannabis Promises Big Sales Tax Collections

By Brian Greer on Thu, Jan 11, 2018 @ 04:45 PM

Forbes reports that California's marijuana market stocks soared on the first open trading day of the year, after California legalized retail sales of the drug and became the largest legal market in the US.

Topics: sales tax news
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Sales Tax News - January 8, 2018

By Brian Greer on Mon, Jan 08, 2018 @ 07:05 AM

City Council Approves Referendum to Raise Sales Tax Rate

Topics: sales tax news
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Tax Rate Increases Effective Jan 1, 2018

By Brian Greer on Fri, Jan 05, 2018 @ 04:45 PM

New Sales Tax Goes Into Effect in Stearns County, Minnesota

Topics: sales tax news
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E-Commerce Sales Tax & Third Party Merchants

By Brian Greer on Wed, Jan 03, 2018 @ 04:30 PM

According to the United States Department of Commerce's Census Bureau news, e-commerce transactions made up 9.1% of total retail sales in the third quarter of 2017, accounting for  more than $115 billion in sales.

Topics: sales tax news retail
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California Gets Creative By Introducing a Potential "Mileage" Tax

By Brian Greer on Fri, Dec 29, 2017 @ 09:05 AM

As states look to replace lost sales tax collections, they have become creative in how nexus rules are applied and in some cases, have introduced new taxing regimes.  California may soon be introducing a new tax to its residents. 

Topics: sales tax news
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What Massachusetts Can Gain from Taxing Marijuana

By Brian Greer on Thu, Dec 28, 2017 @ 04:35 PM

This past year, Massachusetts became the latest of few states that have decided to legalize marijuana.  Though the ship hasn't totally sailed on selling, it is no longer viewed as a crime and recreational smoking is legal.  With that said, the question still remains for the state: how much do they stand to profit from taxing?  According to the Boston Globe"Taxes on recreational marijuana sales could net the state between $44 million and $82 million in the next fiscal year, according to a new analysis by the Massachusetts Department of Revenue."

Topics: sales tax news
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Sales Tax News - December 26, 2017

By Brian Greer on Tue, Dec 26, 2017 @ 08:05 AM

Clayton County Fights to Keep $20 Million Jet Fuel Sales Tax

Topics: sales tax news
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Sales Tax News - December 22, 2017

By Brian Greer on Fri, Dec 22, 2017 @ 09:57 AM

Oklahoma Town Considering Sales Tax Election

Topics: sales tax news
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Sales Tax News - December 19, 2017

By Brian Greer on Tue, Dec 19, 2017 @ 01:02 PM

Florida Senator Aims to Eliminate Diaper Sales Tax

Topics: sales tax news
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Illinois Cities Look to Save $500K in Sales Tax Fees

By Brian Greer on Fri, Dec 15, 2017 @ 06:01 AM

Two cities in Illinois (Bloomington and Normal) are banding together to oppose a recent law that has them paying a two percent collection fee on sales tax in their communities.  This fee costs the cities approximately one million dollars in local funds and opponents insist it is an unfair burden placed on the cities in an attempt at reviving a state budget that has long been out of control. 

Topics: sales tax news
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Sales Tax News - December 13, 2017

By Brian Greer on Wed, Dec 13, 2017 @ 10:35 AM

Williamson County, TN

Topics: sales tax news
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Sales Tax News - December 11, 2017

By Brian Greer on Mon, Dec 11, 2017 @ 02:02 PM

El Segundo to Revisit Sales Tax

Topics: sales tax news
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Sales Tax News - December 8, 2017

By Brian Greer on Fri, Dec 08, 2017 @ 06:00 AM

North Myrtle Beach to Hold Referendum on a New Sales Tax

Topics: sales tax news
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Sales Tax News - December 6, 2017

By Brian Greer on Wed, Dec 06, 2017 @ 08:13 AM

Auburn Sees Sales Tax Decrease While Rest of Cayuga County Sees Increase

Topics: sales tax news
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Colorado Locales Vote to Increase Sales Tax on Cannabis

By Brian Greer on Mon, Dec 04, 2017 @ 02:43 PM

Several cities and counties across Colorado have approved various sales taxes on marijuana during the elections in November.  Some areas of Colorado voted on the issue even though they do not yet have any dispensaries.  These new local taxes are in addition to the steep state taxes.

Topics: sales tax news
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Sales Tax News - November 30, 2017

By Brian Greer on Thu, Nov 30, 2017 @ 07:39 AM

Palmyra City Council Approves Sales Tax Ballot Proposal

Topics: sales tax news
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Amazon Collecting Sales Tax for Third Party Sellers?

By Brian Greer on Tue, Nov 28, 2017 @ 04:48 PM

At a time when many states are trying to offer tax breaks to Amazon to host the company's new headquarters, the state of South Carolina is instead trying to collect more taxes from the online retail giant by forcing them to collect sales tax for purchases made from within the state.

Topics: sales tax news
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Voters in Texas Reject Sales Tax Increase

By Brian Greer on Wed, Nov 22, 2017 @ 09:02 AM

Bastrop County, TX

Topics: sales tax news
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Sales Tax News - November 20, 2017

By Brian Greer on Mon, Nov 20, 2017 @ 02:02 PM

Timnath, CO

Topics: sales tax news
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Put Up Your Dukes - South Carolina vs. Online Shopping

By Brian Greer on Fri, Nov 17, 2017 @ 08:39 AM

I'm predicting this week's breaking news of the State of South Carolina officially filing suit against global Internet giant Amazon for a reported amount of $500 million will precede major increases in online sales during the onset of the 2017 holiday buying frenzy.  Online merchants can expect to see even greater numbers than the usual 15% online sales increase this year, due to many states jumping on the bandwagon to grab their piece of the pie as Americans strive to save hard-earned money by shopping online and thereby saving the expense of paying their state's sales tax.

Topics: sales tax news
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Arkansas Task Force to Analyze Sales Tax Exemptions

By Brian Greer on Thu, Nov 16, 2017 @ 01:02 PM

The state of Arkansas has appointed a task force to analyze the state's sales tax exemptions.  With new federal tax reform in the works, the state is looking to address areas of its own policies that are in need of adjustment.  The Tax Reform and Relief Legislative Task Force will take a look at the state's 101 exemptions and determine if any of them can be eliminated.

Topics: sales tax news
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Sales Tax News - November 14, 2017

By Brian Greer on Tue, Nov 14, 2017 @ 07:53 AM

Washington D.C. Considering Sales Tax Increase

Topics: sales tax news
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How Did the Recent Election Affect Sales Taxes?

By Brian Greer on Fri, Nov 10, 2017 @ 02:13 PM

Manhattan, Kansas

Topics: sales tax news
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Texas Is Doing Sales Tax Right

By Brian Greer on Thu, Nov 09, 2017 @ 08:36 AM

Texas Is Doing Sales Tax Right

The State of Texas is trending strong with robust sales tax collections being reported from one city after another.  This, in spite of the fact that some of these cities suffered a hit from Hurricane Harvey.  Take a look at these numbers:

Topics: sales tax news
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Sales Tax News - October 27, 2017

By Brian Greer on Fri, Oct 27, 2017 @ 01:17 PM

Sedona City Council Approves Half-Percent Sales Tax Increase

Topics: sales tax news
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Communities Raise Sales Taxes to Fund Schools

By Brian Greer on Tue, Oct 24, 2017 @ 03:52 PM

Voters in small communities are deciding whether to increase local sales tax rates to fund local schools.  Many times, schools are funded through property taxes but property taxes are not always enough to meet school budgets.  In these communities, a special local option sales tax can help close the gap.  The key is getting local residents to agree to the sales tax increase.

Topics: sales tax news
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Prominent Sales Tax Outsourcing Provider Creates Risk for Clients

By Brian Greer on Thu, Oct 19, 2017 @ 04:16 PM

We recently transitioned a client from a large, well known sales tax outsourcing service provider to TaxConnex.  As part of the transition, we discovered several critical issues.  On the surface, these issues don’t appear to be significant; however, they point to a process that pushes the risk of non-compliance back to the client.  This seems contrary to one of the primary goals of outsourcing which is to not only shift the work, but to also shift at least some of the risk to the service provider.  Here’s what we uncovered:

Topics: sales tax compliance
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Sales Tax News - October 18, 2017

By Brian Greer on Wed, Oct 18, 2017 @ 02:43 PM

Gonzales, LA to Vote on Half-Cent Sales Tax Increase

Topics: sales tax news
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How Much Does a One Penny Sales Tax Increase Cost?

By Brian Greer on Mon, Oct 16, 2017 @ 07:13 AM

Des Moines Considering a Sales Tax Increase

Des Moines has approved $62,000 for a phone survey to explore the idea of adding a one cent sales tax in Polk County.  The county is one of few in Iowa without such a tax.  A lobbying firm will be paid to survey residents about how they feel about the new tax. 

Topics: sales tax news
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States Crack Down on Sales Tax for Amazon Sellers

By Brian Greer on Fri, Oct 13, 2017 @ 08:03 AM

Expect to pay more sales tax this holiday season as more online merchants will be collecting sales tax.

As states become increasingly frustrated by federal rules that exempt online retailers from paying sales tax, the pressure is building for change.  Amazon, which accounted for 43% of online retail sales in 2016, is at the epicenter of the crack down.

Topics: sales tax news
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Sales Tax Exemptions Apply to Recent Hurricane Victims

By Brian Greer on Thu, Oct 12, 2017 @ 09:13 AM

Sales Tax News and Hurricane Relief

As rebuilding efforts begin in Texas and Florida following the devastation caused by Hurricanes Harvey and Irma, there are important sales tax updates to note.  The declaration of a federal disaster in both Texas and Florida assists locals trying to clean up debris and rebuild lost homes and businesses with state tax exemptions on certain goods and services. 

Topics: sales tax news
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Local Referendums Will Determine Sales Tax Increases

By Brian Greer on Tue, Oct 10, 2017 @ 07:47 AM

Sales Tax Increases to be Decided in Alaska and Local Elections

Topics: sales tax news
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Sales Tax News - October 6, 2017

By Brian Greer on Fri, Oct 06, 2017 @ 04:02 PM

Glencoe, AL

Topics: sales tax news
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Sales Tax Confusion and the Tech Scene

By Brian Greer on Thu, Oct 05, 2017 @ 08:47 AM

Recently, the "Bodega" app emerged onto the tech scene, and given the nature of this convenience store-like kiosk, much attention is being given to how (and whether) to go about charging sales tax on transactions initiated from the app. 

Topics: sales tax news
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Sales Tax News - October 3, 2017

By Brian Greer on Tue, Oct 03, 2017 @ 10:12 AM

Ontario is Oregon's Only City to Approve a General Sales Tax

Topics: sales tax news
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Louisiana and the State Budget Crisis

By Brian Greer on Thu, Sep 28, 2017 @ 02:13 PM

Louisiana and the State Budget Crisis

Topics: sales tax news
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Taxing Entertainment in Branson

By Brian Greer on Tue, Sep 26, 2017 @ 09:48 AM

If you want to visit a national treasure then move Branson, Missouri, to the top of the list.   Country singers, acrobats, comedians and museums abound.  The locals are friendly and helpful.  It's a great place to bring your family, as it boasts award-winning venues, fabulous restaurants, world-class golf, fishing, and family friendly activities tucked among the leafy hills and picturesque beauty of the Ozark mountain range.  Choices for lodging are extensive.  Branson offers the gamut for your vacation headquarters, from affordable motels and discount-rate hotels to the opulent, yet rustic, ambiance of 5-star venues on one of the area's most popular lakes.  When in Branson, you have the choice of going economy or luxury, it's up to your personal preference and pocketbook.  Either way, you're going to have a wonderful visit.

Topics: sales tax news
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Sales Tax News - September 22, 2017

By Brian Greer on Fri, Sep 22, 2017 @ 07:43 AM

Santa Fe County Votes Down Proposed Sales Tax Increase

Voters in Santa Fe County, New Mexico rejected a proposed sales tax increase that would have raised money for public safety jobs and behavioral health services.  About 70% of Santa Fe voters voted against the tax increase that would have raised gross receipts tax rate by one-sixteenth of a cent.  The proposed tax increase was expected to generate an extra $2 million annually.  The vote comes after commissioners approved a one-eighth-cent sales tax increase to create safety personnel positions, and that tax increase is expected to generate $4.6 million dollars a year.

Topics: sales tax news
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South Dakota Supreme Court Overturns Sales Tax Law

By Brian Greer on Wed, Sep 20, 2017 @ 03:12 PM

South Dakota Supreme Court Ruling

Topics: sales tax news
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Will Utah Tax Groceries or Not?

By Brian Greer on Fri, Sep 15, 2017 @ 07:58 AM

Utah: To Eliminate Sales Tax on Food or Not?

Topics: sales tax news
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Sales Tax News - September 13, 2017

By Brian Greer on Wed, Sep 13, 2017 @ 10:42 AM

Proposed Increases to Connecticut's Sales Tax

Topics: sales tax news
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Sales Tax News - September 11, 2017

By Brian Greer on Mon, Sep 11, 2017 @ 03:28 PM

Oklahoma Supreme Court Upholds Removal of Vehicle Sales Tax Exemption

Topics: sales tax news
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Sales Tax News - September 7, 2017

By Brian Greer on Thu, Sep 07, 2017 @ 02:49 PM

Tax Increase Fails for Walker County

Topics: sales tax news
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What's Your Favorite Cookie?

By Brian Greer on Tue, Sep 05, 2017 @ 11:09 AM

As states continue to struggle from declining sales tax collections some states are aggressively expanding the sales tax nexus definition beyond its physical presence requirements under Quill

Topics: sales tax nexus sales tax news
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Sales Tax News - August 22, 2017

By Brian Greer on Tue, Aug 22, 2017 @ 10:34 AM

New York county sees sales tax collections increase while Del City, Oklahoma votes on a sales tax increase.

Topics: sales tax news
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Sales Tax News - August 21, 2017

By Brian Greer on Mon, Aug 21, 2017 @ 10:52 AM

South Carolina considers taxing prescription drugs while an Alaskan Mayor looks to eliminate a sales tax cap.

Topics: sales tax news
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Sales Tax News - August 18, 2017

By Brian Greer on Fri, Aug 18, 2017 @ 02:14 PM

More sales tax rate increases on the horizon and Wisconsin looks to cut taxes to attract business.

Topics: sales tax news
1 min read

Sales Tax Rates on the Rise

By Brian Greer on Thu, Aug 17, 2017 @ 01:03 PM

Many jurisdictions are looking to raise sales tax rates.  Perhaps in response to lost collections due to internet purchases.

Topics: sales tax nexus sales tax calculation sales tax news
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Sales Tax News - August 16, 2017

By Brian Greer on Wed, Aug 16, 2017 @ 11:00 AM

Here's the latest on sales tax developments around the country:

Topics: sales tax news
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Sales Tax News - August 14, 2017

By Brian Greer on Mon, Aug 14, 2017 @ 09:20 AM

Does your business have exposure to sales tax in multiple states?  Here are some of the latest news stories to keep you informed.

Topics: sales tax news
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Sales Tax News - August 10, 2017

By Brian Greer on Thu, Aug 10, 2017 @ 02:09 PM

Does your business have exposure to sales tax in multiple states?  Here are some of the latest news stories to keep you informed.

Topics: sales tax news
1 min read

Sales Tax News - August 8, 2017

By Brian Greer on Tue, Aug 08, 2017 @ 09:20 AM

Does your business have exposure to sales tax in multiple states?  Here are some of the latest news stories to keep you informed.

Topics: sales tax news
1 min read

Cookies Can Now Create Sales Tax Nexus

By Brian Greer on Fri, Aug 04, 2017 @ 11:07 AM

If your company engages in e-commerce, you have exposure to state sales tax nexus laws in any location where you do business.  Nexus rules change frequently.  Here is the latest news to keep you informed.

Topics: sales tax nexus sales tax news retail
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Sales Tax News - August 2, 2017

By Brian Greer on Wed, Aug 02, 2017 @ 02:06 PM

Does your business have exposure to sales tax in multiple states?  Here are some of the latest news stories to keep you informed.

It's interesting that there is so much news about lost sales tax collections due to online purchases.  Here's an example where collections are up followed by a story citing lost collections.  In reality, sales tax collections, as a whole, are at an all-time high.  Amazon is collecting in every state.  Big box retailers collect sales tax on their online stores.  How much revenue are states really losing out on?

 

Oklahoma City Sales Tax Revenue Up

Topics: sales tax news
1 min read

Sales Tax News - July 31, 2017

By Brian Greer on Mon, Jul 31, 2017 @ 11:00 AM

Does your business have exposure to sales tax in multiple states?  Here are some of the latest news stories to keep you informed.

Topics: sales tax nexus sales tax news
1 min read

An Update on Sales Tax Holidays

By Brian Greer on Thu, Jul 27, 2017 @ 01:54 PM

Consumers in some US states are gearing up for an annual shopping holiday free from sales tax.

Topics: sales tax filing
1 min read

Sales Tax News - July 27, 2017

By Brian Greer on Thu, Jul 27, 2017 @ 11:05 AM

Below are some proposed sales tax changes that could effect how you manage sales tax:

Topics: sales tax news
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Sales Tax News from Around the Country

By Brian Greer on Mon, Jul 24, 2017 @ 02:01 PM

As a business owner, you are already familiar with the seemingly ever-changing tax laws.  Federal, state, and local tax changes are difficult to follow.  If you engage in interstate commerce, keeping up with the changes in each location is nearly impossible.  To help update you, here is a short list of sales tax news from around the country.

Topics: sales tax news sales tax filing
1 min read

Voluntary Disclosure Agreements (VDAs) Can be a Good Business Decision

By Brian Greer on Wed, Jul 19, 2017 @ 10:45 AM

Many businesses engage in interstate commerce and are liable for sales taxes in one or more of those states.  It’s becoming more and more common, especially for small businesses who sell via the Internet, to create sales tax nexus.  In some cases, these businesses fail to file sales taxes in states where they should.  It comes as a surprise that they owe sales taxes at all and often the time to file has passed.  If you own a company involved in multi-state transactions and you find yourself owing past sales taxes, filing a voluntary disclosure agreement could be a great option.

Topics: VDA
1 min read

Sales Tax Outsourcing is Mainstream

By Brian Greer on Wed, Jul 12, 2017 @ 09:47 AM

Feeling overwhelmed and frustrated by all the new rules governing sales tax collection?  Why not outsource your problems?  Sales tax outsourcing is becoming more and more common among companies that simply do not want to invest the resources in keeping up with all the details of current and constantly changing sales tax laws.

Topics: sales tax compliance
1 min read

Surviving a Sales Tax Audit

By Brian Greer on Mon, Jul 10, 2017 @ 10:30 AM

For small to medium-sized businesses with fewer resources and smaller teams a sales tax audit can be a major distraction to their normal operations.  Audits can be extremely time-consuming.  The list of tasks is seemingly endless – pulling records, answering questions from the auditor, and potentially negotiating the outcome of the audit.  All of the above is time-consuming and potentially risky.  So what is the best way for you to manage a sales tax audit?  Here are a few things you can do. 

Topics: sales tax audits
1 min read

Amazon FBA Sellers Responsible for Sales Tax

By Brian Greer on Thu, Jul 06, 2017 @ 11:00 AM

Many entrepreneurs have entered the electronic commerce industry via Amazon’s FBA program.  With FBA, Amazon acts as the warehouse and distribution center by storing products and taking care of all the sale side logistics. Using Amazon’s vast resources for filling orders is an asset any business would be attracted to, especially a small retailer with a limited network.

Topics: sales tax nexus sales tax news
1 min read

Some Basics of Sales Tax Nexus

By Brian Greer on Mon, Jul 03, 2017 @ 08:09 AM

Businesses engaged in interstate sales should be concerned about sales tax nexus. The term nexus relates to an organization’s physical presence in a state. The ugly truth about nexus, however, is that even some of the most seemingly mundane business operations can be interpreted as defining a physical presence in another state.

Topics: sales tax nexus sales tax news
1 min read

The Changing Landscape of Sales Tax Nexus

By Brian Greer on Fri, Jun 16, 2017 @ 10:00 AM

What exactly is sales tax nexus?  Tax nexus is a legal term, that when present, gives a state the ability to subject a business to that state's sales tax laws.  According to Investopedia, tax nexus is "generally defined as a physical presence." However, contrary to the nomenclature, a physical presence does not actually have to entail what one would think it means. A physical presence could include more than just having an office or employees in the state.  For example, visiting a state to check up on clients and maintain business relationships can create sales tax nexus. Quill Corp vs. North Dakota (1992) brought forth the physical presence standard, but in the ensuing decades individual states have incorporated the law in a confusing, varying fashion - especially as it relates to online sellers.

Topics: sales tax nexus sales tax compliance
1 min read

4 Activities that Can Create Sales Tax Nexus

By Brian Greer on Mon, Jun 12, 2017 @ 09:00 AM

Knowing where to collect and remit sales tax for your business becomes more complicated all the time, thanks to the sometimes ugly world of sales tax nexus. If you have nexus in a state, you are responsible for collecting sales tax there.  Here are four business activities that can trigger nexus that are somewhat under the radar:

Topics: sales tax nexus telecom tax
1 min read

Sales Tax Nexus - The Good, the Bad, and the Ugly

By Brian Greer on Tue, Jun 06, 2017 @ 10:00 AM

Some new business owners operating exclusively online labor under the mistaken assumption that unless they've sold a product or service to someone in the state in which their business is physically located, they are not responsible for collecting and paying sales or use tax. Unfortunately, this is not necessarily the case. A variety of scenarios can legally obligate an online retailer or service provider to collect and pay sales tax in any number of states.

Topics: sales tax nexus sales tax compliance
2 min read

Sales Tax Compliance and the Amazon FBA Seller

By Brian Greer on Tue, May 23, 2017 @ 10:00 AM

I recently met with a company that has been growing their business primarily through Amazon’s FBA program.  As like many nascent businesses, sales tax compliance was not a significant concern as they were launching and taking off.  They collected sales tax in their home state and the state where they shipped their inventory to Amazon.  Unbeknownst to them (or perhaps a calculated business decision), they had created sales tax nexus in multiple states and had not been collecting the sales tax due.

 

Topics: sales tax compliance VDA sales tax news
2 min read

3 Components of Sales Tax Compliance You Haven't Considered

By Robert Dumas on Thu, May 04, 2017 @ 10:30 AM

I get the opportunity to talk to many businesses and CPA firms about our sales tax outsourcing services at TaxConnex.  When most of the people we talk to refer to sales tax compliance, they are thinking about tax return preparation only.   They never consider the other components of compliance. 

Topics: sales tax compliance
2 min read

Who is NOMAD…or What is it?

By Noelle Ard on Thu, Apr 27, 2017 @ 03:03 PM

I’m often situations where people will ask me to explain what I do.  Once I get the initial “tax” word out of my mouth, and explain that my busy season isn’t coming up…it’s every month, I’ll get some random questions related to state sales tax – who creates it, when is the next sales tax holiday, how did it start, and have I heard of NOMAD?

Topics: sales tax
2 min read

Is Your Sales Tax Compliace On Track?  3 Factors You Need To Know

By Brian Greer on Thu, Apr 20, 2017 @ 10:30 AM

The need for quality sales tax compliance support continues to grow – especially in the small to mid-market business segment.  This is due to a combination of factors including:

Topics: sales tax compliance sales tax
2 min read

EYE ON Nebraska Sales Taxes

By Jeff Meigs on Thu, Apr 13, 2017 @ 10:30 AM

The Nebraska sales and use tax is imposed on taxable retail sale of tangible personal property and certain services.  The state sales and use tax rate is 5.5%.  Local jurisdictions are authorized to impose a sales or use tax on the same base as the state – local rates average 1.4%.

Topics: sales tax sales tax news
2 min read

You Can't Solve Your Sales Tax Problems with Technology Only

By Robert Dumas on Thu, Apr 06, 2017 @ 02:30 PM

I had a sales call this week with a very experienced CFO for a group of start-up technology companies.   Over the course of the last couple of years, this CFO became aware of sales tax responsibilities for some of his companies and had begun building processes to identify prior period exposure and to manage the prospective sales tax compliance process. 

Topics: sales tax compliance sales tax
1 min read

Tennessee TAPS Into A New System

By Noelle Ard on Thu, Mar 30, 2017 @ 02:00 PM

With all the talk about simplifying Arizona (or not simplifying as it seems from a return preparer perspective), Tennessee has slipped in a totally new e-File system that has gone live and boasts the ability to file sales and use tax, privilege tax, tobacco tax, liquor-by-the-drink tax, and television & telecommunications sales tax online.

Topics: sales tax sales tax news
2 min read

Ask a Sales Tax Pro Q&A

By Brian Greer on Thu, Mar 23, 2017 @ 10:30 AM

A colleague of mine and I were recently discussing that there are some common sales tax questions we receive just about every day.  We’ve outlined some of them below:

Topics: sales tax
1 min read

EYE ON Montana Sales Taxes

By Jeff Meigs on Tue, Mar 14, 2017 @ 10:30 AM

Generally, the state of Montana does not impose sales and use tax on purchases of tangible personal property. 

However, effective 2003 Montana legislated a transaction tax on lodging/accommodations, vehicle rentals and telecommunications services.

Topics: sales tax
1 min read

Have You Paid Your Sales Tax Premium?

By Robert Dumas on Thu, Mar 09, 2017 @ 10:30 AM

Over the years, I have come to respect the uniqueness of our business and how we help companies comply with the myriad sales tax laws.   Like most government mandated activities, businesses get absolutely no “value add” by completing forms, submitting information and remitting taxes and fees to government agencies.  I have never heard of a business growing revenue or creating efficiency by complying with government red tape.  

Topics: sales tax compliance
4 min read

2017 State Sales Tax Holidays

By Noelle Ard on Thu, Mar 02, 2017 @ 02:00 PM

It’s hard to believe that Spring has sprung…at least down in the South it has.  With the coming of spring and daylight savings time on the horizon, many people find themselves starting that to do list and preparing budgets for home improvements, summer vacations, back to school, and more.

Topics: sales tax filing
2 min read

EYE ON Missouri Sales Taxes

By Jeff Meigs on Wed, Feb 22, 2017 @ 10:30 AM

The Missouri sales and use tax is imposed on taxable retail sales of tangible personal property and certain services.  The statewide general tax rate is 4.225%. 

Cities and counties are authorized to impose sales and use taxes for various purposes. These local sales and use taxes are generally imposed in the same manner, on the same subject, and collected in the same way as the state sales and use tax. 

However, in many jurisdictions, the local use tax rate is less than the local sales tax rate.  This is unusual in the world of sales and use tax – in almost all states and local jurisdictions throughout the country, the sales tax rate is the same as the use tax rate.  The average local sales and use tax rate in Missouri is 3.66%. 

Topics: sales tax sales tax news
1 min read

TaxConnex Honored at Bulldog 100 Dinner

By Kate Bennett on Wed, Feb 08, 2017 @ 10:30 AM

TaxConnex was recognized as the No. 100 fastest-growing business owned or operated by a University of Georgia graduate during the 2017 Bulldog 100 Celebration February 4 at the Atlanta Marriott Marquis in downtown Atlanta.

 

TaxConnex founding Partner and UGA graduate Robert Dumas (BBA '84) center, with Partners Jeff Meigs and Brian Greer.

 

Topics: Now it's all on us
2 min read

Super-Bowl Favorite Sees 20% Increase…

By Noelle Ard on Thu, Feb 02, 2017 @ 10:30 AM

RISE UP ATLANTA FANS – Super-Bowl Sunday is just three short days away!  While I’ve been studying up on Matt Ryan, Julio Jones, and the rest of the Falcons team, I’ve also been planning my Super-Bowl Sunday Snacks and I love some chips, salsa, and home-made guacamole.

Topics: sales tax
2 min read

Arizona – Transaction Privilege Tax Simplification is HERE!

By Noelle Ard on Thu, Jan 26, 2017 @ 10:30 AM

The long awaited day has finally come, the day in which all Sales & Use tax compliance addicts rejoice as Arizona finally rolls out the TPT Simplification.  That’s right folks, after a couple of false starts in recent years, TPT Simplification is LIVE on the Arizona website and I’m going to tell you all you need to know to quickly make the transition.

Topics: sales tax filing
1 min read

The Rapidly Changing Landscape of Sales & Use Tax

By Kate Bennett on Fri, Jan 20, 2017 @ 11:39 AM

Like self-driving cars, some things are best not 100% automated - sales and use tax is one of those things. 

In OPPORTUNITY IN COMPLEXITY, THE RAPIDLY CHANGING LANDSCAPE OF SALES & USE TAX, as seen in the latest supplement from Accounting Today, TaxConnex’s Managing Partner, Robert Dumas explains the importance of working with an experienced Sales Tax Outsourcing Service Provider, with a breadth of knowledge of sales and use tax accounting, and not solely a sales tax technology solution.

Topics: sales tax compliance
2 min read

Sales Tax Returns Are Not Commodities

By Brian Greer on Wed, Jan 18, 2017 @ 10:30 AM

I’m not sure when a sales tax return turned into a widget.  It seems that in the almost 17 years I’ve been in the sales tax compliance outsourcing business, sales tax returns have been treated like a commodity with contracts awarded all too often to the lowest cost provider.  My income tax brethren may feel the same way about the commoditizing of income tax returns.

Topics: sales tax compliance
2 min read

Sales Tax Nexus and Drop Shipments

By Brian Greer on Thu, Jan 12, 2017 @ 10:31 AM

TaxConnex held a webinar yesterday regarding sales tax nexus and drop shipments.   The webinar was organized into three topics:

Topics: sales tax nexus sales tax filing
1 min read

Sales Tax Outsourcing vs. Return Prep Outsourcing

By Brian Greer on Thu, Dec 15, 2016 @ 10:30 AM

As sales tax outsourcing has grown in popularity, I sometimes see situations where the “service provider” (I use that term loosely as these are generally software firms that try to provide service) is misaligned with the requirements of the client. 

Topics: sales tax compliance
1 min read

Sales Tax Compliance Outsourcing

By Brian Greer on Thu, Dec 08, 2016 @ 10:20 AM

 

Topics: sales tax compliance sales tax
2 min read

Sales Tax Compliance - The Importance of Good Old Fashion Service

By Robert Dumas on Tue, Dec 06, 2016 @ 10:57 AM

I heard a story about Chick-Fil-A on the radio this weekend that has reminded me about the importance of service.

My apologies in advance to Chick-Fil-A and the characters in the story to the extent I get the details wrong, but I believe I am getting the moral of the story right.  Here we go…at a strategy meeting of Chick-Fil-A executives, they were discussing the need for faster growth to fend off another competitor that seemed to be growing faster at the time.  After listening intently to the discussion, Truett Cathy – the much revered and respected founder of Chick-Fil-A – stopped the conversation and stated that he did not want to hear anything else about fast growth.  He wanted to discuss how Chick-Fil-A could get better.  He said if Chick-Fil-A gets better, the market will demand they get bigger.  Based on the results, I think Truett Cathy has proven he was right!

As the founder and leader of TaxConnex, I am always trying to push for faster growth.  I measure part of our success on year over year revenue growth because businesses with fast growing revenue are deemed more valuable and exciting. 

There is definitely truth in this, but fast growth does not mean the business is getting better at what they do. 

We see this in the sales tax compliance industry, which is dominated by fast growing technology companies.  These businesses have created and built software applications using the latest technologies – e.g., “the cloud” – and developed a very appealing message of push button simplicity.  There are definitely aspects of sales tax compliance that demand and require the latest and greatest software technologies, but there is a significant aspect of sales tax compliance that also requires good old fashion service.  

It is critically important for businesses in sales tax compliance to strive to get better whether we provide technology or service.

TaxConnex is a premier service provider that uses proprietary and licensed software solutions to manage the financial risk of all or part of a business’s sales tax compliance responsibilities.  I am reminded by Chick-Fil-A that my goal for fast growth will only be achieved if we constantly get better at what we do.  

 

Read More About  The TaxConnex Difference

Topics: sales tax compliance sales tax
2 min read

3 Components of Sales Tax Compliance You Haven't Considered

By Robert Dumas on Tue, Nov 29, 2016 @ 02:19 PM

I get the opportunity to talk to many businesses and CPA firms about our sales tax outsourcing services at TaxConnex.  When most of the people we talk to refer to sales tax compliance, they are thinking about tax return preparation only.   They never consider the other components of compliance. This blog is going to highlight three of these ancillary components of sales tax compliance:

Topics: sales tax compliance
1 min read

A Happy New Year for California!

By Noelle Ard on Tue, Nov 22, 2016 @ 10:00 AM

In recent news, the California State Board of Equalization (CA BOE) announced a statewide sales and use tax rate decrease of 0.25% from 7.50% to 7.25% on January 1, 2017.

Topics: sales tax sales tax news
3 min read

EYE ON Minnesota Sales Taxes

By Jeff Meigs on Thu, Nov 17, 2016 @ 11:12 AM

 

Topics: sales tax sales tax news
1 min read

Service Vs. Technology

By Brian Greer on Tue, Nov 15, 2016 @ 10:15 AM

Be afraid of a sales tax compliance solution that promises “easy” and “push button simplicity”.  Because of the complexities surrounding sales tax compliance, business owners and finance leaders want to hear there’s an easy answer to automate their sales tax compliance.  These business owners and finance leaders talk with different companies involved in the sales tax compliance industry and often times buy from whomever promises what they want – ease and simplicity.  However, it’s not always that simple.

Topics: sales tax compliance
1 min read

TaxConnex's Robert Dumas in Accounting Today

By Kate Bennett on Thu, Nov 10, 2016 @ 10:15 AM

Like self-driving cars, some things are best not 100% automated - sales and use tax is one of those things.  As seen in the latest supplement from Accounting Today, TaxConnex’s Managing Partner, Robert Dumas explains the importance of working with an experienced Sales Tax Outsourcing Service Provider, with a breadth of knowledge of sales and use tax accounting, and not solely a sales tax technology solution.

Topics: sales tax compliance
2 min read

Top 3 Differences in Income and Sales Taxes Management

By Robert Dumas on Thu, Nov 03, 2016 @ 02:10 PM

Would you manage your sales tax process the same way you manage your income tax process? 

Of course not. 

Why?  Because they are two different types of tax with differing risks, complexities, and timing.  As you develop an effective sales tax process, it’s important to understand how these tax types are different and therefore how you manage them should also be different. 

Topics: sales tax compliance sales tax news
2 min read

EYE ON Michigan Sales Taxes

By Jeff Meigs on Thu, Oct 27, 2016 @ 02:16 PM

 

The Michigan sales and use tax is imposed on taxable retail sale of tangible personal property and certain services.  The statewide general tax rate is 6%.  There are no local sales or use taxes imposed in Michigan.   

Topics: sales tax nexus sales tax sales tax news
2 min read

When Should You Register with State and Local Taxing Authorities?

By Brian Greer on Wed, Oct 26, 2016 @ 02:10 PM

We get this question alot! So we decided to re-run this informative blog from April 2016.

“It depends.”

This single question could fill volumes to get to the proper answer. The simple answer is if you have sales tax nexus in a state, then you should register with the Department of Revenue for a sales tax id number and begin collecting and remitting sales tax.

Topics: sales tax sales tax filing
1 min read

District of Columbia Sales Taxes– Out with the Old…In with the New!

By Noelle Ard on Thu, Oct 20, 2016 @ 02:03 PM

I know your first thought was the Presidential election right?  No, silly, this isn’t a political rant, this is all about the new Sales and Transaction Taxes website!

Topics: sales tax sales tax news
2 min read

Some Not So New and Exciting Things About Sales Tax

By Robert Dumas on Tue, Oct 18, 2016 @ 02:00 PM

This is a reposting of blog from June 2016.  Oldie but goodie.

Topics: sales tax nexus sales tax
2 min read

3 Components of Sales Tax Compliance You Haven't Considered

By Robert Dumas on Thu, Oct 13, 2016 @ 10:56 AM

I get the opportunity to talk to many businesses and CPA firms about our sales tax outsourcing services at TaxConnex.  When most of the people we talk to refer to sales tax compliance, they are thinking about tax return preparation only.   They never consider the other components of compliance. 

Topics: sales tax compliance
1 min read

7 Warning Signs You Should Break Up with Your Sales Tax Outsourcing Provider

By Brian Greer on Tue, Oct 11, 2016 @ 02:29 PM


  1. You spend too much time overseeing and reviewing the work of the service provider

  2. You see an increase in the notice activity

  3. There’s no reliable point of contact with the service provider

  4. There’s no accountability on behalf of the service provider

  5. A “C”-level executive is contacted by a jurisdiction with bad news

  6. General lack of responsiveness to questions

  7. You’ve lost confidence in the service provide

    If you are experiencing any of these symptoms it may be time to reevaluate your outsourcing relationship.  With TaxConnex’s sales tax outsourcing service, you receive an off-premise sales tax employee.  Rather than just providing return preparation services (like our competitors), we're available to address questions as they pop up in the business - including nexus questions, taxability issues, exemptions, and audits. Our responsiveness to client questions is universally recognized by our clients.

Topics: sales tax compliance
1 min read

EYE ON Massachusetts Sales Taxes

By Jeff Meigs on Thu, Oct 06, 2016 @ 02:00 PM

The Massachusetts sales and use tax is imposed on taxable retail sales and the use of tangible personal property and designated services. The statewide general tax rate is 6.25%. There are no local sales or use taxes imposed in Massachusetts.   

Topics: sales tax sales tax news
2 min read

How To Qualify For Telecommunications Tax Exemptions

By Brian Greer on Tue, Oct 04, 2016 @ 11:07 AM

TaxConnex works with a lot of telecommunications service providers that are new to the business.  Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  

Topics: telecom tax
2 min read

Arizona Teases TPT Simplicity…. AGAIN

By Noelle Ard on Thu, Sep 29, 2016 @ 10:06 AM

I believe it was about this same time last year where I could barely contain my excitement…Arizona (AZ) was FINALLY going to roll out their “simplified” return filing process for all locals which would reduce the number of local level returns that would need to be filed, as everything would then be reported and remitted to the state and distributed accordingly.  Then something happened…. or maybe something didn’t happen, regardless, AZ pulled back on their yearlong commitment of making 2016 a more “simplified” filing year, and halted the “TPT Simplicity Project.”

Fast forward to this week, I received an email alert notifying me that TPT Simplification is drawing near, and effective with the January 2017 liability (due February 2017), TPT Simplification will be up and running and ALL locals will be reported and remitted to the State of Arizona via the Transaction Privilege Tax Return. 

Topics: sales tax sales tax news
2 min read

Here’s What You Can Expect from the Other Guys

By Brian Greer on Tue, Sep 27, 2016 @ 10:25 AM

 

I’m always surprised (maybe frustrated is a better word) when a business decides to use a different sales tax compliance outsourcing firm.  I take it personally and believe that maybe I didn’t understand their issues well enough to articulate exactly how TaxConnex will benefit them. 

Topics: sales tax compliance
1 min read

Frustrated with Your Sales Tax Audit?

By Brian Greer on Thu, Sep 22, 2016 @ 11:23 AM

Sales Tax Audit Assessments - How to Avoid An Uphill Battle

Recently, I’ve had several discussions with companies about a sales tax audit assessment they’ve received.  They come to me in an attempt to negotiate a settlement with the state.  The problem is that they were clearly at fault and are now struggling with the reality of paying the back taxes, penalties, and interest. 

There’s typically not much I can do in this situation unless they are willing to pursue an offer in compromise which requires the tax payer to share their financial details with the state…essentially proving that the full payment of the assessment will put them out of business.  The angle is that the state is better off accepting some percentage of payment on the initial assessment while keeping the company in business long-term…ideally yielding a bigger financial gain long-term.

Voluntary Disclosure Agreements White Paper

Topics: sales tax sales tax audits
1 min read

Direct Marketers - How To Play It Safe With Sales Tax

By Brian Greer on Thu, Sep 15, 2016 @ 10:30 AM

Sales tax compliance questions often start with a review of a company’s sales tax nexus footprint. TaxConnex frequently works with direct marketers to assist them with their sales tax compliance.

As a first step, a direct marketer should review where they have distributors or sales agents. These distributors will generally result in sales tax nexus for the direct marketer.

As a result, a direct marketer can quickly find themselves with a multi-state sales tax compliance obligation.

Topics: sales tax nexus sales tax compliance
2 min read

You Get What You Pay For

By Robert Dumas on Tue, Sep 13, 2016 @ 10:30 AM

One of our biggest challenges as a business is trying to educate our market.  You have read this before in my blogs, but there are tremendous misunderstandings about transactions tax and what it requires to stay in compliance with the laws.  

Topics: sales tax compliance
1 min read

EYE ON Maryland Sales Taxes

By Jeff Meigs on Thu, Sep 08, 2016 @ 10:30 AM

 

Topics: sales tax sales tax news
1 min read

The Lone Star State has a New Look for You

By Noelle Ard on Tue, Sep 06, 2016 @ 10:30 AM

Take a deep breath, count to 10…just as you have finally made yourself familiar with the Texas Sales & Use website, things are changing…

Topics: sales tax news
2 min read

Online Sales Tax Simplification – Finally?

By Brian Greer on Thu, Sep 01, 2016 @ 10:30 AM

Late last week, Chairman of the House Judiciary Committee US Representative Goodlatte from Virginia released his much anticipated draft bill entitled “Online Sales Simplification Act of 2016”. 

Topics: sales tax nexus sales tax news
2 min read

Myths and Misconceptions - A Guide for Telecom Tax Compliance

By Brian Greer on Fri, Aug 26, 2016 @ 02:00 PM

I speak with several companies each week that are in the process of launching a new VoIP telecommunications service.  Misinformation abounds including……”Since it’s delivered over the Internet I thought it was tax free.”  I hear the following comment also…..”My carrier is collecting and paying all the taxes and fees for me.”

Let me dispel these rumors. 

First, VoIP is both taxed and regulated.  It is not tax free. 

Furthermore, carriers are generally only collecting those taxes and fees that apply to the wholesale transaction when they sell the service to you.  As a telecom reseller, you are exposed for the applicable taxes and fees on the mark-up at least and potentially for the taxes and fees that you have already paid to your carrier.

Topics: telecom tax
2 min read

The Complication of Sales Tax Registrations

By Brian Greer on Thu, Aug 18, 2016 @ 10:30 AM

In the sales tax world, “registrations” can take on multiple meanings. Generally speaking, sales tax registrations refer to the authorization to collect sales tax in a particular jurisdiction. 

Topics: sales tax news sales tax filing
2 min read

Wait…You want to REWARD me with TAX?

By Noelle Ard on Thu, Aug 11, 2016 @ 02:00 PM

Let’s get real, sometimes we are too busy “multi-tasking” that we hear something in the background that just makes us turn our head in awe (like a confused puppy).  Over the last week I was filing sales tax returns and had “background noise” on (the news) and I overheard a local TV station mention...

Topics: sales tax
2 min read

Top Tips to Avoid Sales Tax Audit Assessments

By Brian Greer on Wed, Aug 10, 2016 @ 02:00 PM

Sometimes a sales tax audit is unavoidable.  Perhaps an auditor has audited one of your customers and discovered one of your invoices without sales tax applied.  Maybe you’re unlucky and you were selected in the audit lottery.  Perhaps a disgruntled employee blew the whistle on you.

Topics: sales tax audits
1 min read

EYE ON Maine Sales Taxes

By Jeff Meigs on Thu, Aug 04, 2016 @ 09:57 AM

Topics: sales tax sales tax news
4 min read

Sales Tax and Pokémon Go

By Brian Greer on Tue, Jul 26, 2016 @ 02:00 PM

 

If you have children, then you’re probably aware of the recent Pokémon Go phenomenon. 

It’s a virtual reality game that requires the player to interact with their environment in the quest to find various Pokémon characters, evolve them, and wage battles with other players’ Pokémon.  

Topics: sales tax sales tax news
2 min read

Filed An Online Sales Tax Return Lately?

By Brian Greer on Thu, Jul 21, 2016 @ 10:30 AM

I often speak with companies that are considering sales tax compliance outsourcing.  I’m surprised at the frequency I hear comments like, “all the returns are filed online – it’s easy”. I guess the people that tell me that haven’t filed a return online recently.  Or perhaps they are filing in some of the less complicated states. 

Topics: sales tax compliance sales tax
1 min read

Sales Tax Relief for Internet E-Tailers?

By Brian Greer on Tue, Jul 19, 2016 @ 10:30 AM

Just last week new legislation was introduced into the US House of Representatives by Congressman Jim Sensenbrenner (R-WI.). 

Topics: sales tax nexus sales tax sales tax news
2 min read

If You’re a Contractor You May Owe More Sales Tax

By Brian Greer on Thu, Jul 14, 2016 @ 10:30 AM

Sales tax for contractors can seem quite simple on the surface but there are some unique factors to consider.

Generally speaking, a contractor is considered the end user consumer of any materials they purchase and are required to pay either sales or use tax on the purchase of these materials.  Additionally, generally speaking, a contractor’s receipts – that is what they charge their customer – are not subject to sales tax. 

Topics: sales tax
2 min read

Top Five Changes In Sales Tax This Year

By Carol McIlvaine on Thu, Jul 07, 2016 @ 11:00 AM

Sales tax check up time!

Here are the top 5 changes related to sales tax compliance in 2016:

  1. Filing Frequency Changes – Many jurisdictions have reviewed the previous year’s filing history and are made hanges to your account. Some jurisdictions will mail your notification of this change, but please be aware that other notifications may come electronically - especially if you file online. Not updating your filing frequency will cause notices and may cause penalty and interest if your account switched to a more frequent filing frequency.
  1. Rate Updates – January brings the largest number of rate changes of the year. If you are contracted with a third party to procure your rates, then most likely you are prepared. However, if you have to manually program your rates into your ERP or POS system, then you might be behind. Easch jurisdiction does a pretty good job announcing their rate changes on their website, by mail and some by phone. You should check and make sure you have the most current tax rate.
  1. Jurisdictional Changes – We saw two major changes with telecom taxes for January. California introduced the CA MTS. This is for prepaid mobile Telephone Services. There are significant differences for retailers vs. direct sellers, so it is important to understand the new filing requirement. Another big change we saw with Telecom is the IL local E911 returns are now all being reported to the State instead of directly to the individual jurisdictions.
  1. Electronic Filing and Payment Requirements – Similar to changes in filing frequencies, the states have reviewed the filing history and thresholds may have been met to trigger an online filing or payment requirement. Also, more and more jurisdictions are trying to go paperless and are making these electronic methods mandatory.
  1. New or Changing Prepayment Requirements – Also be aware of a new requirement for prepayments. These may also be known as estimated payments or deposits. Prepayments are generally required for taxpayers that remit larger tax liabilities. If your business has grown, you may have reached a threshold to trigger the prepayment. Again, these notices may not come in the mail, but could be communicated electronically through your online account. Kansas is one of those states.

Are you overwhelmed yet? Just review your jurisdictional notices carefully and remember the notices could be provided to you online.

Topics: sales tax compliance
2 min read

What Triggers a Sales Tax Audit?

By Brian Greer on Wed, Jun 29, 2016 @ 11:38 AM

A sales tax audit can be your worst nightmare as a business owner or operator. Even in the best case scenario, you’ll lose incredible amounts of productivity cooperating with state authorities who have an unbelievably frustrating eye for detail.  In the worst case scenario, you’ll end up with a huge bill you weren’t expecting.
Topics: sales tax sales tax audits
2 min read

Puerto Rico VAT Vetoed

By Kelly Felker on Thu, Jun 23, 2016 @ 10:30 AM

With just days before enactment, both legislative branches in Puerto Rico voted to override the Governor’s original veto of legislation repealing the Puerto Rico (PR) Value Added Tax (VAT) on May 26, 2016. 

That’s right… the legislature originally voted to repeal the proposed VAT.  The Governor then vetoed the repeal requiring the legislature to carry a two-thirds majority in order to override the Governor’s veto and ultimately repeal the proposed VAT– which it did.

Topics: sales tax news
1 min read

Tennessee Challenges Physical Presence Nexus Standard

By Brian Greer on Tue, Jun 21, 2016 @ 10:30 AM

 

Topics: sales tax nexus sales tax
1 min read

Some Not So New and Exciting Things About Sales Tax

By Robert Dumas on Thu, Jun 16, 2016 @ 02:00 PM

Sometimes it’s difficult to find something  new and exciting about sales tax and sales tax compliance to share.  (Can you imagine not having anything exciting to say about sales tax?)  

Topics: sales tax nexus sales tax
1 min read

Vermont is Next to Introduce Economic Nexus for Sales Tax

By Brian Greer on Tue, Jun 14, 2016 @ 02:33 PM

In the continued assault on the physical presence standard generally associated with sales tax nexus, Vermont has recently passed legislation affecting “out-of-state” retailers. 

Similar to the South Dakota legislation recently passed, and taking components of the Colorado reporting requirements, Vermont’s legislation was signed by the Governor on May 25, 2016.  Fortunately, for “out-of-state” retailers, there’s a bit of time before they must follow these new requirements – July of 2017 – or the first day of the first quarter following any overturning of the Quill physical presence standard.

Topics: sales tax nexus sales tax sales tax news
1 min read

Data Consistency with Sales Tax Compliance

By Anne Birkmann on Thu, Jun 09, 2016 @ 02:00 PM

The monthly sales tax compliance process is highly dependent on the available data. 

This data should be consistent from month to month.  The data consistency I’m referring to is the format of the report each time it is generated.  Of course there will be new source systems (new billing systems or new ecommerce applications) occasionally, but the data format each month should be the same. 

Topics: sales tax compliance sales tax
1 min read

EYE ON Louisiana Sales Taxes

By Jeff Meigs on Tue, Jun 07, 2016 @ 10:36 AM

The Louisiana sales and use tax is imposed on retail sales of tangible personal property and enumerated services.  A use tax is imposed on the purchase and use within Louisiana of tangible personal property and enumerated services where sales tax was not charged by the retailer.  The state sales and use taxes are imposed at the rate of 4%.

Topics: sales tax sales tax news
1 min read

Sales Tax Nexus and Direct Marketers

By Brian Greer on Fri, Jun 03, 2016 @ 11:32 AM

Sales tax compliance questions often start with a review of a company’s sales tax nexus footprint. TaxConnex frequently works with direct marketers to assist them with their sales tax compliance

As a first step, a direct marketer should review where they have distributors or sales agents.

These distributors will generally result in sales tax nexus for the direct marketer. As a result, a direct marketer can quickly find themselves with a multi-state sales tax compliance obligation.

Topics: sales tax nexus sales tax compliance
1 min read

Sun, Fun & Annual Prepays?

By Noelle Ard on Tue, May 31, 2016 @ 10:30 AM

Topics: sales tax sales tax filing
1 min read

One Word You Don’t Usually Hear Related to Sales Tax

By Brian Greer on Tue, May 24, 2016 @ 02:00 PM

 

Topics: sales tax
1 min read

Why I Like Sales Tax Compliance

By Robert Dumas on Thu, May 19, 2016 @ 02:00 PM

I am going to start my blog today by confessing that I am unusual – maybe even weird.  I like sales tax and the related tax compliance. 

I like it because it fits a compulsion I have to clean up messes and make things fit into their proper boxes.  Nationwide sales tax laws provide unlimited opportunities for businesses to mess up, so it makes sense I would enjoy it so much.

Topics: sales tax compliance
1 min read

EYE ON Kentucky Sales Taxes

By Jeff Meigs on Tue, May 17, 2016 @ 10:30 AM

The Kentucky sales and use tax is imposed on receipts from sales of tangible personal property and enumerated services. A use tax is imposed on the purchase and use within Kentucky of tangible personal property and enumerated services where sales tax was not charged by the retailer.  The state sales and use taxes are imposed at the rate of 6%. There are no local sales or use taxes in Kentucky. 

Topics: sales tax sales tax news
6 min read

2016 Tax Free Holidays

By Noelle Ard on Thu, May 12, 2016 @ 10:30 AM

It’s never too early to plan a shopping trip, especially when the savings could be significant.  Check out the latest and greatest Tax Free Holiday list for 2016.

State

 

 

 

 

 

 

Items Included

2016 Dates

Information Links *

   

 

 

 

 

Alabama

hurricane preparedness

February 26-28

http://www.revenue.alabama.gov/

generators - $1,000

supplies - $60

Alabama

clothing - $100

August 5-7

http://www.revenue.alabama.gov/

computers - $750 

school supplies - $50 

books - $30

Arkansas

clothing - $100

August 6-7

http://www.dfa.arkansas.gov/

school supplies

Connecticut

clothing and footwear - $100

August 21-27

http://www.ct.gov/drs/

Georgia

school supplies

July 30-31

http://dor.georgia.gov/

clothing - $100

supplies - $20

computers - $1,000

Georgia

energy star/WaterSense products - $1,500

September 30 - October 2 

http://dor.georgia.gov/

Iowa

clothing - $100

August 5-6

https://tax.iowa.gov/

Louisiana

all TPP - $2,500

August 5-6

http://www.revenue.louisiana.gov/

Louisiana

hurricane preparedness items - $1,500

May 28-29

http://www.revenue.louisiana.gov/

Louisiana

firearms, ammunition and hunting supplies

September 2-4

http://www.revenue.louisiana.gov/

Maryland

energy star products

February 13-15

http://www.comp.state.md.us/

Maryland

clothing & footwear-$100

August 14-20

http://www.marylandtaxes.com/

Mississippi

clothing & footwear - $100

July 29-30

http://www.dor.ms.gov/

Mississippi

firearms, ammunition and hunting supplies

September  2-4

http://www.dor.ms.gov/

Missouri

energy star products - $1,500

April 19-25

http://dor.mo.gov/

Missouri

clothing - $100

August 5-7

http://dor.mo.gov/

computers - $3,500

school supplies - $50

New Mexico

clothing - $100

August 5-7

http://www.tax.newmexico.gov

computers - $1,000

computer equip. - $500

school supplies - $30

Oklahoma

clothing - $100

August 5-7

http://www.tax.ok.gov/

South Carolina

clothing

August 5-7

http://www.sctax.org/

school supplies

computers

other

Tennessee

clothing - $100 

August 5-7

http://tn.gov/revenue/

school supplies - $100

computers - $1,500

Texas

generators - $3,000

April 23-25

http://comptroller.texas.gov

storm devices - $300

preparedness items - $75

Texas

energy star products 

May 28-30

http://comptroller.texas.gov/

air conditioners - $6,000; other - $2,000

Texas

clothing, backpacks and school supplies- $100

August 5-7

http://comptroller.texas.gov/

Virginia

clothing - $100

August 5-7

http://www.tax.virginia.gov/

Stay up to date with any additions by visiting http://www.taxadmin.org/sales-tax-holidays for additional information.

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Topics: sales tax filing
1 min read

Communicating Your Sales Tax Needs to IT

By Anne Birkmann on Tue, May 10, 2016 @ 10:30 AM

Sometimes in the sales tax world, tax and finance departments need to rely on their IT department to get sales tax added to an invoice correctly or to get reports for various reasons. 

Topics: sales tax telecom tax
1 min read

Sales Tax Nexus Abuzz

By Brian Greer on Thu, May 05, 2016 @ 10:00 AM

There are exciting times, or at least interesting times, ahead for the debate surrounding sales tax nexus. 

States, growing weary of the inability to require remote sellers to collect sales tax, continue to take matters into their own hands. 

It’s been nearly 25 years since the US Supreme Court ruled in the Quill case establishing the substantial physical presence standard by which sales tax collection and remittance obligations are determined.  During recent history, states have taken steps that blur the line in terms of what substantial physical presence really is – some states adding provisions to account for click-through nexus for example.  Now, states are going rogue, and blatantly ignoring the Quill standard – and opening the door to legal challenge potentially escalating to another US Supreme Court ruling.

Topics: sales tax nexus sales tax sales tax filing
2 min read

Sales Tax Outsourcing- Address The Mess

By Robert Dumas on Tue, May 03, 2016 @ 11:04 AM

My blog today is inspired by a sermon series from our Church.  The series is called “Address the Mess”.  The series addresses, in part, our unwillingness to recognize and fix the messes in our lives – most of which are self-created.  This reminded me of many of the companies we talk with and in some cases actually serve. mess.jpg

For many companies, there is a resistance to recognizing sales tax compliance responsibilities and/or an unhappy acceptance of the dysfunctional way in which the compliance is managed.

 


 

Our first obstacle in helping our prospective clients is getting them to recognize the reality of sales tax compliance. 

They tend to have many misconceptions and misinformation about their sales tax responsibilities, including their nexus the taxability of their products and services and their risk.   We have to convince them that nexus does not mean just a ‘brick and mortar’ physical presence and that many forms of digitally transmitted products and services are taxable.  Unfortunately, many of these companies are more comfortable believing their version of reality instead of the facts.

Our second obstacle in helping our prospective clients is getting them to consider a change in their existing sales tax compliance processes and solutions. 

We talk to many prospective clients that will admit they are unhappy with their current sales tax outsource solution, but they are hesitant to make any changes.  They get so comfortable with the predictability of the problems and pain that they are familiar with from their current solution that they can’t even believe a better option is available.  Even if they believe a better option is possible, they fear a change of service providers will be worse.  

The only thing that helps them overcome this fear is increased unpredictability from their current provider.   In other words, greater fear!  Does this sound dysfunctional to you?

Taking these concepts of denial and pain back to the sermon series…does any of this have any parallels to your personal life or the personal lives of people you know?  We all are at risk for denying the truth and failing to address our mess.

 

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Topics: sales tax compliance sales tax
2 min read

EYE ON Kansas Sales Taxes

By Jeff Meigs on Thu, Apr 28, 2016 @ 10:30 AM

eye_on_kansas.pngThe Kansas sales and use tax is imposed on receipts from sales of tangible personal property and enumerated services. 

A use tax is imposed on the purchase and use within Kansas of tangible personal property and enumerated services where sales tax was not charged by the retailer.  The state sales and use taxes are imposed at the rate of 6.5%. Localities can impose additional taxes which are administered by the state.  Currently, the highest local rate is 4%.

Topics: sales tax sales tax news
1 min read

Heart of Dixie Announces Amnesty

By Noelle Ard on Thu, Apr 21, 2016 @ 02:00 PM

Doing business in the Yellowhammer state?  If so, pay close attention! 

The State of Alabama has announced the launch of their 2016 Tax Amnesty Program running June 30, 2016 – August 30, 2016. 

The amnesty program will apply to most taxes administered by the Department of Revenue, however, to confirm visit the new Alabama Amnesty website at http://alabamataxamnesty.com.

Topics: taxability sales tax news
1 min read

Managing Your Outsource Transition

By Anne Birkmann on Tue, Apr 19, 2016 @ 10:00 AM

Ensure solid execution of your outsourcing transition by managing common challenges.

 

Topics: sales tax compliance
2 min read

Switching Sales Tax Compliance Outsourcing Firms – Part 2 (of 2)

By Brian Greer on Wed, Apr 13, 2016 @ 10:47 AM

This is part two of a two part series focused on switching sales tax compliance outsourcing providers.  In Part 1, I discussed some key indicators that it may be time to make a change.  Here’s a recap:

  • You spend too much time overseeing and reviewing the work of the service provider

  • You see an increase in the notice activity

  • There’s no reliable point of contact with the service provider

  • There’s no accountability on behalf of the service provider

  • A “C”-level executive is contacted by a jurisdiction with bad news

Topics: sales tax compliance
2 min read

When Should You Register with State and Local Taxing Authorities?

By Brian Greer on Thu, Apr 07, 2016 @ 10:30 AM

“It depends.”

This single question could fill volumes to get to the proper answer. The simple answer is if you have sales tax nexus in a state, then you should register with the Department of Revenue for a sales tax id number and begin collecting and remitting sales tax.

Topics: sales tax sales tax filing
1 min read

Top 10 Guide for Telecom Tax Compliance

By Brian Greer on Tue, Apr 05, 2016 @ 10:40 AM

I speak with several companies each week that are in the process of launching a new VoIP telecommunications service.  Misinformation abounds including……

Topics: telecom tax
1 min read

EYE ON Iowa Sales Taxes

By Jeff Meigs on Fri, Apr 01, 2016 @ 10:30 AM

The Iowa retail sales and use tax is imposed on the sales price of all sales of tangible personal property as well as numerous services.  

The state sales and use taxes are imposed at the rate of 6%. Localities can impose additional taxes which are administered by the state. 

Topics: sales tax sales tax news
2 min read

Telecommunications Tax Exemptions

By Brian Greer on Tue, Mar 29, 2016 @ 02:51 PM

TaxConnex works with a lot of telecommunications service providers that are new to the business.  Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  They may have infrastructure in place to support the sales tax requirements of their existing business, but the telecommunications service presents a different set of issues. 

One of these issues is related to establishing the ability to purchase telecommunications services from their carriers on an exempt basis under the premise that they will be reselling the service.

Topics: telecom tax
2 min read

Massachusetts Announces Wicked Relief!

By Noelle Ard on Thu, Mar 24, 2016 @ 09:43 AM

Just before the end of 1st quarter, Massachusetts Department of Revenue announced their Tax Amnesty program for 2016, which will be open to all businesses needing to catch up on back taxes, save on typically assessed penalties, and benefit from a limited lookback period on unfiled returns (3 yrs.).

Topics: sales tax taxability
3 min read

Switching Sales Tax Compliance Outsourcing Firms – Part 1 (of 2)

By Brian Greer on Tue, Mar 22, 2016 @ 11:01 AM

This is part one of a two part series focused on switching sales tax compliance outsourcing providers. 

This first part will focus on identifying when it’s time to switch while the second part will focus on the steps necessary to make a change.  It’s challenging to know when to make a change. 

Topics: sales tax compliance
2 min read

Sales Tax - The Elephant In The Room

By Brian Greer on Thu, Mar 17, 2016 @ 10:38 AM

Over the years, I’ve noticed how sales tax is often pushed aside and overlooked as competing priorities squeeze business owners’ and tax departments’ time.

There are numerous situations when I’ve heard, “I don’t have time to talk about sales tax right now because________.”  You fill in the blank. 

Because it’s year-end. 

Because state income tax returns are due. 

Because we’re in the middle of an acquisition.

Topics: sales tax nexus sales tax
1 min read

Sales Tax Nexus and Affiliates

By Brian Greer on Tue, Mar 15, 2016 @ 02:00 PM

Recently, we were engaged to perform a sales tax nexus review.  I always ask if the business has any affiliates in any states we are reviewing. 

Topics: sales tax nexus sales tax sales tax news
1 min read

EYE ON Indiana Sales Taxes

By Jeff Meigs on Fri, Mar 11, 2016 @ 10:30 AM


Indiana sales and use taxes apply to the sale of tangible personal property and some enumerated services. There are no local sales or use taxes levied in Indiana (although, there are some local transaction taxes imposed on things like lodging, food and beverage, and admissions). The state sales and use tax rate is 7%.

Technology companies need to be alert - prewritten computer software maintained on computer servers outside of Indiana is subject to Indiana sales and use tax when accessed electronically via the Internet (i.e., “cloud computing”). The accessing of prewritten computer software by Indiana residents constitutes a transfer of the software because the customers gain constructive possession and the right to use, control, or direct the use of the software.

Don’t assume software as a service is exempt in every state just because it’s not subject to sales and use tax in your state

Generally, for retailers and from a sales and use tax perspective, Indiana is a business friendly state.

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Topics: sales tax sales tax news
3 min read

I Owe More Sales Tax? The Reality of Double Taxation

By Jeff Meigs on Tue, Mar 08, 2016 @ 03:03 PM

An oldie but goodie, worth a re-run (originally posted Sept. 13, 2013)...

In recent weeks I’ve talked with at least three companies who sell to end-user/consumers who have told me that they don’t have an  sales and use tax risk because they pay sales tax to their vendors – while they failed to charge sales tax to their customers.  They are comforted by the fact that “the state got their tax revenue and therefore shouldn’t come knocking for more”. 

When I tell them that they still have a sales or use tax liability, they are surprised.  When I tell them they may not get ANY credit for the tax they paid to their vendors, they get irate –

“What do you mean I still owe the tax – that’s double taxation!”

Sales tax is imposed on the sale at retail of tangible personal property.  Therefore, sales tax generally doesn’t apply to wholesale transactions – as long as the appropriate exemption/resale documentation is executed.  When a reseller fails to provide the appropriate exemption documents to its vendor, the vendor is required to charge sales tax to the reseller.  Subsequently, when that reseller sells to the end-user/consumer, there is a sales tax due on that retail sales price. 

Topics: sales tax nexus sales tax sales tax audits
2 min read

Sales Tax Voluntary Disclosure Agreements

By Brian Greer on Tue, Mar 01, 2016 @ 10:30 AM

VDA’s (Voluntary Disclosure Agreements) are a hot topic so far in 2016. I believe companies that have been out of compliance historically use the beginning of the year to course correct and get on the right footing from a sales and use tax perspective.

Topics: sales tax VDA
2 min read

Key Guidelines for Sales Tax Registrations

By Carol McIlvaine on Thu, Feb 25, 2016 @ 12:36 PM

Collecting sales tax from your customers and remitting to the proper jurisdictions can be challenging. But, before you start collecting and remitting you need to register with the applicable jurisdictions. This may sound like an easy task, but like most things related to sales tax, the registration process can be complicated and varied from state to state.

Topics: sales tax sales tax filing
1 min read

Telecom Tax and Other Specialty Transactions Taxes

By Robert Dumas on Tue, Feb 23, 2016 @ 01:14 PM

Sales tax is broadly defined to mean any tax that is charged to the end-user customer by the retailer of property or services. Though this definition is correct, it does not always provide a complete picture of a business’s transactions tax liabilities.

Topics: sales tax sales tax filing
2 min read

EYE ON Illinois Sales Taxes

By Jeff Meigs on Thu, Feb 18, 2016 @ 10:19 AM

 

Illinois is one of the more unique states when it comes to sales and use tax.

The “retailers’ occupation tax” is the state’s version of a sales tax and is imposed on the retail sale of tangible personal property.

A “service occupation tax” is a liability of the service provider and is imposed on tangible personal property transferred as an incident to their retail sale of services. Services themselves are generally exempt from the retailer’s occupation tax.

A “service use tax” is imposed on the privilege of using, in the state, real or tangible personal property that is acquired as an incident to a purchase of service from a serviceman. The tax is measured by the selling price of the tangible personal property transferred by the serviceman.

The state sales and use tax rate is 6.25%. A variety of local sales and use taxes exist and range from a rate of 0.5% to a combined local tax rate of 3.75% in some jurisdictions. However, localities cannot impose a “service use tax”.

With respect to the situs of the transaction for local tax purposes, location of the inventory from which the sale is made as well as the location where the order is accepted will influence whether or not local tax applies and at what rate. Where a retailer sells tangible personal property that is shipped from outside the state of Illinois to a customer located inside the state of Illinois, only the 6.25% state rate is charged.

Generally, the local sales and use tax is reported to and administered by the state of Illinois. However, the city of Chicago imposes a number of local taxes which are reported to and administered by the city.

Leases and Rentals

Unlike most states, leases or rentals of tangible personal property (except motor vehicles) are not subject to the Illinois retailers’ occupations tax/sales tax. Instead, lessors are considered users of the property and are subject to the sales or use tax when purchasing tangible personal property that they lease or rent to others.

Chicago

Chicago has enacted a number of taxes which are in addition to or in the absence of the state sales and use tax. Following are a few examples of tax types and corresponding rates imposed and administered by the city of Chicago on services which are exempt from Illinois state sales and use tax:

  • Personal Property Lease Transactions Tax – 9%
  • Amusement Tax – 9% (5% for certain live theatrical, musical, and other live cultural performances held in an auditorium, theater, or other space whose maximum capacity (including balconies) is more than 750 persons.)
Topics: sales tax sales tax news
1 min read

Sales Tax Data Mapping

By Anne Birkmann on Tue, Feb 16, 2016 @ 10:00 AM

 

Data mapping can be a requirement as part of managing your sales tax process.

 Data mapping involves creating a specification that shows how data from one system maps to data from another system. 

  • This can be due to a system data migration where data is moved from one database to another. 
  • It can also be due to an integration where data from one database is regularly moved to another database.
Topics: sales tax
2 min read

The New CA MTS – What You Need to Know

By Noelle Ard on Thu, Feb 11, 2016 @ 04:20 PM

Effective January 1, 2016, California imposed a prepaid mobile telephony services (MTS) surcharge on purchasers of prepaid wireless services.

Sellers of prepaid wireless services will be responsible for the collection and remittance of the prepaid MTS surcharge which will consist of the following:

Topics: sales tax sales tax news
3 min read

Sales Tax, Nexus, and Drop Shipments

By Brian Greer on Tue, Feb 09, 2016 @ 02:00 PM

Drop shipment transactions can be challenging for both a retailer and a supplier. In a typical drop shipment transaction, the retailer is making a retail sale to a customer. The retailer does not hold inventory and places an order with a supplier and asks the supplier to drop ship the merchandise to the customer. The retailer is buying and reselling the merchandise and thus the transaction between the retailer and supplier should be exempt from sales tax – provided the proper exemption documentation is in place.

Topics: sales tax nexus
2 min read

Top 5 Changes in Sales Tax Compliance…Are You Ready?

By Carol McIlvaine on Thu, Feb 04, 2016 @ 10:15 AM

In November my blog gave you many tips to get ready for the new year. Now the new year is here and changes are in effect. Are you ready?

Topics: sales tax compliance
2 min read

Push Button Sales Tax Compliance?

By Robert Dumas on Wed, Feb 03, 2016 @ 10:04 AM

ERP and sales tax automation firms are quick to point out their “push button” ease of use. They sell the easy button solution and many taxpayers are happy to buy it. Until they realize it’s not so easy.

We’ve lost clients in the past – not related to our service at all – but based on the belief that they can fully automate the sales tax process with the push of a button. Sometimes these decisions get made a level or two above the people that are left filing the sales tax returns and managing through the exceptions. We’ve had some of these same clients come back to us after they realize that sales tax compliance is rarely compatible with a “push button” system.

Topics: sales tax compliance
1 min read

EYE ON Idaho Sales Taxes

By Jeff Meigs on Fri, Jan 29, 2016 @ 10:20 AM

 

Idaho is a beautiful state in many ways including state sales and use taxes.

The sales and use tax rate is fairly reasonable at 6% and the tax is applicable to the sale of tangible personal property and some enumerated services. While there are some local sales and use taxes, they are primarily limited to special services (i.e. lodging) or resort communities. Only the state 6% sales and use tax is reported on the state sales and use tax return. Local taxes are self-administered by the jurisdictions.

Like the state itself, there really isn’t anything complicated about the Idaho sales and use tax laws for general retailers and service providers.

Topics: sales tax sales tax news
1 min read

Sales Tax Nexus and Direct Marketers

By Brian Greer on Tue, Jan 26, 2016 @ 04:17 PM

Sales tax compliance questions often start with a review of a company’s sales tax nexus footprint. TaxConnex frequently works with direct marketers to assist them with their sales tax compliance.

Topics: sales tax nexus
2 min read

No Sales Tax Notices…No Worries... RIGHT?

By Noelle Ard on Thu, Jan 21, 2016 @ 02:00 PM

Notices…A word that has such an ugly connotation to those of us in the compliance industry. While notices at TaxConnex have never been an issue of concern, the fact that jurisdictions are changing the way they communicate could indicate your recent lull in notice activity is giving you a false sense of security.

Topics: sales tax audits sales tax filing
1 min read

Ready for a Sales Tax Nexus Check-Up?

By Brian Greer on Wed, Jan 20, 2016 @ 10:14 AM

If you didn’t review your sales tax position at the end of the year and make changes prior to January 1, it’s not too late. It’s never too late to improve your sales tax position. While January 1 is an ideal time to implement a new process, the longer you wait the greater your potential of increased (and unnecessary) sales tax risk.

Topics: sales tax nexus
1 min read

Economic and Sales Tax Nexus

By Brian Greer on Thu, Jan 14, 2016 @ 02:00 PM

In determining whether a business has sales tax nexus in a particular state, historically, I would have said if a company has income tax nexus in a state then they will also have sales tax nexus in that same state.

Topics: sales tax nexus
2 min read

Identifying Sales Tax Risk with a Few Simple Questions

By Robert Dumas on Tue, Jan 12, 2016 @ 01:56 PM

My daughter and future son-in-law are both CPAs working for a local CPA firm. They work in audit, not tax, but we often talk ‘shop’ at family dinners. (Needless to say, my wife and other daughter do not enjoy our ‘CPA talk’ at dinner.)  

Topics: sales tax audits
1 min read

EYE ON Hawaii Sales Taxes

By Jeff Meigs on Thu, Jan 07, 2016 @ 02:00 PM

Hawaii is quite literally an island unto itself relative to sales and use taxes.

Hawaii's general excise tax (i.e. sales tax) is a business privilege tax that is imposed on the gross receipts of virtually any economic activity carried on in the state. Whereas most states impose a sales tax on the sale of tangible personal property and only certain enumerated services, Hawaii’s general excise tax is imposed on all sales (absent a few exceptions such as sales to nonprofit organizations).

Topics: sales tax sales tax news
1 min read

Sales Tax Compliance and Data File Naming Conventions

By Anne Birkmann on Tue, Jan 05, 2016 @ 10:06 AM

 

At TaxConnex, we believe that sales tax compliance is more art than science.

When we say this, we are referring to the fact that sales tax cannot be fully automated due to the abundance of “gray” areas that require real-time decision making by a human. This sets TaxConnex apart from other technology-centric sales tax compliance vendors.

Topics: sales tax compliance
2 min read

Sales Tax Outsourcing and Adele

By Noelle Ard on Tue, Dec 22, 2015 @ 10:30 AM

Those of you that read my previous blog, 5 Sales and Use Tax Tips You Can Learn From Britney Spears, will appreciate this latest entry where I tie-in Adele to Sales Tax Outsourcing. (Sometimes it’s hard to make sales tax “hip” and “cool”. But we try.) You know Adele right? She’s only the most popular musician on the planet right now breaking records left and right with her recent album release “25.” Selling more than 3.38 million copies in the first week of her November 20th release, Adele continues to set new records each week and is selling out her first concert in five years, Adele Live 2016, in a matter of minutes.

Topics: sales tax compliance sales tax
2 min read

Another Sales Tax Technology Failure

By Brian Greer on Wed, Dec 16, 2015 @ 09:44 AM

It seems lately, I hear from more companies that have implemented sales tax technology solutions that have failed to meet expectations. I’m sure there have always been examples of sales tax technology solutions falling short of the desired outcomes – not unlike other technology solutions including ERP systems and supply chain systems that have not met expectations. Getting a technology solution to operate optimally is challenging. I believe technology works best when you have a well-defined process that you can make more efficient. What I’ve seen lately is an attempt to apply sales tax technology solutions to a workflow that is not well-defined. Automating a mess creates a bigger mess.

Topics: sales tax compliance sales tax
1 min read

EYE ON Georgia Sales Taxes

By Jeff Meigs on Thu, Dec 10, 2015 @ 10:06 AM

Georgia is another fairly straightforward state from a sales and use tax perspective. Sales and use taxes apply to the sale of tangible personal property and some enumerated services. While there are local (county level and the city of Atlanta) taxes imposed throughout the state of Georgia, these taxes are administered at the state level.

That means, there is a single sales and use tax return filed for all state and local sales and use taxes – rather than having to file a separate return for each local jurisdiction.

Topics: sales tax news
2 min read

Sales Tax – The “Un-Tax”

By Robert Dumas on Tue, Dec 08, 2015 @ 10:00 AM

Most of my 20 plus year career in sales tax compliance and consulting has been serving Fortune 500 companies and telecommunications service providers. Virtually all the Fortune 500 companies had a tax department and one or more sales tax professionals on staff and was fully informed and aware of their sales tax responsibilities and liability risks. Additionally, the telecommunications companies without a tax staff were always aware of sales tax as a part of their invoicing process. I never had to educate these clients about their sales tax responsibilities.

Topics: sales tax compliance sales tax
1 min read

Holiday Season is Business License Season

By Carol McIlvaine on Thu, Dec 03, 2015 @ 11:34 AM

business_license-357993-editedBusiness licenses come in two flavors – (1) one is generally connected to a sales tax license and is required for collecting and remitting sales tax; and (2) the other enables a company to do business in certain jurisdictions – these could be construction permits, fire alarm permits, occupancy licenses, etc. States that tend to have a lot of business license requirements due to their local jurisdictions are Alabama, Alaska, Arizona, Colorado, Louisiana, Missouri and New Mexico. There are some states that also have a state level business license too.

Topics: sales tax filing
1 min read

12 Days of Sales Tax

By Brian Greer on Tue, Dec 01, 2015 @ 10:42 AM

With Thanksgiving behind us and Christmas and year-end rapidly approaching, I thought a “Christmas-themed” sales tax post might be fun.

Here’s to “The “12 Days of Sales Tax”:

  • On the first day of sales tax, my auditor gave to me – a notice of a large assessment.

  • On the second day of sales tax, my boss gave to me – two invoices with no sales tax.

  • On the third day of sales tax, my sales team brought to me – three taxability questions.

  • On the fourth day of sales tax, the mailman brought to me – four nexus questionnaires.

  • On the fifth day of sales tax, my auditor gave to me – five audit notices!

  • On the sixth day of sales tax, my boss asked me to complete – six GL account recons.

  • On the seventh day of sales tax, my email gave to me – seven vendors telling me sales tax is easy.

  • On the eighth day of sales tax, my AP department sent back to me – eight check requests.

  • On the ninth day of sales tax, my telephone brought to me – nine jurisdictional inquiries.

  • On the tenth day of sales tax, my marketing team brought to me – ten new product launches.

  • On the eleventh day of sales tax, the mailman brought to me – eleven sales tax rate changes.

  • On the twelfth day of sales tax, my email gave to me – twelve overdue tax returns.

After you read through the list once, then you might want to go back through again and sing it – do this in your head though – unless you’re one of those types that actually enjoys bad karaoke. (We have one of those in our office.)

Topics: sales tax
2 min read

Why You NEED To Shop on Black Friday

By Noelle Ard on Wed, Nov 25, 2015 @ 02:04 PM

 

Topics: sales tax
1 min read

'Tis the Season and Happy New Year

By Carol McIlvaine on Thu, Nov 19, 2015 @ 02:30 PM

It’s hard to believe that Thanksgiving is next week, Christmas is in a month and then there’s the new year. Are you prepared for this holiday season? Have you thought about how you’re going to manage sales tax compliance in these shortened months?

Topics: sales tax compliance
2 min read

Sales Tax Compliance... Not So Easy

By Robert Dumas on Wed, Nov 18, 2015 @ 01:57 PM

When I first started in public accounting in 1985, there were two computers in the entire office. I worked for one of the Big 8 at the time, so this wasn’t because the firm was behind the times. This was the extent of computer technology in most accounting firms in 1985.

Topics: sales tax compliance sales tax sales tax calculation
2 min read

Sales Tax Nexus and Drop Shipments

By Brian Greer on Thu, Nov 12, 2015 @ 10:13 AM

 

Topics: sales tax nexus sales tax
2 min read

Internet Sales Tax - Amazon FBA

By Brian Greer on Tue, Nov 10, 2015 @ 10:30 AM

 

Topics: sales tax nexus sales tax
22 min read

5 Sales & Use Tax Tips You Can Learn From Britney Spears

By Noelle Ard on Fri, Nov 06, 2015 @ 09:58 AM

You just read that right – SALES TAX & BRITNEY SPEARS! Those that know me, know I’m a fan…. how could you not be? Please don’t even humor me with your response…I get it.

While you all have shrugged off my girl over the last 15 years, I’ve been taking note of the Sales & Use Tax Tips I learned from Brit Brit!

2 min read

Should I Register with the State and Local Taxing Authorities?

By Brian Greer on Wed, Nov 04, 2015 @ 10:00 AM

“It depends.”

This single question could fill volumes to get to the proper answer. The simple answer is if you have sales tax nexus in a state, then you should register with the Department of Revenue for a sales tax id number and begin collecting and remitting sales tax.

Topics: sales tax sales tax filing
3 min read

Sales & Use Tax Electronic Payment Methods

By Carol McIlvaine on Fri, Oct 30, 2015 @ 09:44 AM

In my last blog “ Sales Tax Compliance Advantages Related to e-Filing”, I mentioned that in most jurisdictions where you can electronically file your sales and use tax return, you can also pay electronically.
Topics: sales tax
30 min read

What’s Wrong with Your Sales Tax Outsourcing Service?

By Brian Greer on Tue, Oct 27, 2015 @ 12:27 PM

In the last 15 years, I have worked with two different sales tax outsourcing service firms. One we built to be a return preparation firm and the other (TaxConnex) we have built as an outsourced sales tax department.

Topics: sales tax compliance sales tax
3 min read

EYE ON Florida Sales Taxes

By Jeff Meigs on Thu, Oct 22, 2015 @ 02:00 PM

 

Topics: sales tax sales tax news
2 min read

Triggering a Sales Tax Audit

By Brian Greer on Tue, Oct 20, 2015 @ 10:22 AM


We’re often asked what triggers a sales tax audit.

Unfortunately, there’s no magic formula for avoiding a sales tax audit. Here are a few things we’ve seen over the years that sometimes precede a sales tax audit:

Topics: sales tax sales tax audits
1 min read

EYE ON DC Sales Taxes

By Jeff Meigs on Thu, Oct 15, 2015 @ 10:00 AM

For sales and use tax purposes, the District of Columbia should be treated as a state. The general sales and use tax rate is 5.75%.

In comparison to other states, DC is a fairly easy state in which to comply with sales and use tax laws. There aren’t any local rates to deal with and rules are similar to those of other states – sales and use tax applies to tangible personal property and certain services.

Topics: sales tax
2 min read

Sales Tax Compliance Advantages Related to e-Filing

By Carol McIlvaine on Tue, Oct 13, 2015 @ 02:00 PM

Back in June I posted “Most Costly Sales and Use Tax Compliance Errors.” In this blog, I described one of the errors was not filing and paying electronically.

Topics: sales tax compliance sales tax filing
1 min read

EYE ON Delaware Sales Taxes

By Jeff Meigs on Thu, Oct 08, 2015 @ 10:00 AM

 

Delaware is one of five states that do not impose a general sales or use tax.

Generally, sales of tangible personal property and services are NOT subject to a sales or use tax in Delaware.

Topics: sales tax
2 min read

Sales Tax Compliance and Drop Shipments

By Brian Greer on Tue, Oct 06, 2015 @ 11:06 AM

 

Topics: sales tax compliance sales tax sales tax filing
2 min read

The Reality of Double Taxation

By Jeff Meigs on Thu, Oct 01, 2015 @ 10:00 AM

I frequently talk with companies who sell to end-user/consumers who have told me that they don’t have any sales and use tax risk because they pay sales tax to their vendors – while they failed to charge sales tax to their customers.  They are comforted by the fact that “the state got their tax revenue and therefore shouldn’t come knocking for more”.  When I tell them that they still have a sales or use tax liability, they are surprised.  When I tell them they may not get ANY credit for the tax they paid to their vendors, they get irate – “What do you mean I still owe the tax – that’s double taxation!”

Topics: sales tax nexus sales tax sales tax audits
1 min read

Sales Tax Outsourcing and Secure Data Transfer

By Anne Birkmann on Tue, Sep 29, 2015 @ 10:32 AM


If you’ve outsourced your sales tax compliance work, or are considering outsourcing it, you should determine the best way to transfer your tax data to your service provider each month.

The two main criteria to consider are the size of the file(s) and the sensitivity of the data in the file(s). Many companies that have smaller file sizes (< a couple of MB’s) and aren’t concerned with the sensitivity of the data can utilize traditional email to transfer their file(s) each month. However, certain file sizes will be rejected by an email server and the data security can be lacking via a traditional email transfer.

Topics: sales tax compliance sales tax filing
1 min read

What Do Tom Brady and Sales Tax Have in Common?

By Noelle Ard on Thu, Sep 24, 2015 @ 03:02 PM

 

Topics: sales tax sales tax news
2 min read

Sales Tax Tips for New York’s PrompTax

By Carol McIlvaine on Tue, Sep 22, 2015 @ 11:57 AM

If you have more than $500,000 in annual sales tax liability in the state of New York, then you are likely familiar with their PrompTax. The PrompTax is a prepayment for large taxpayers.

Topics: sales tax sales tax news
2 min read

Don't Forget Sales Tax When It Comes to Year-end Planning

By Robert Dumas on Thu, Sep 17, 2015 @ 11:05 AM

 

Topics: sales tax nexus VDA
2 min read

A Sales Tax Holiday for Weed?

By Noelle Ard on Tue, Sep 15, 2015 @ 11:06 AM

Weed Wednesday

In Colorado, “Back to School” sales tax holidays are so passé. Fast forward to 2015 where sales tax holidays are for more than teachers, parents and students – that’s right, everyone who uses Marijuana recreationally or medically in Colorado will have a sales tax holiday on the blissful bud come September 16, 2015.

On September 16, 2015 the 10% state retail marijuana sales tax and the 15% state retail marijuana excise tax rates will be reduced to 0%. The 2.9% state general sales tax and any tax levied by local jurisdictions must still be levied on September 16, 2015.

Really, a sales tax holiday for Marijuana? Just wait until you read why!

This is a tax reduction for one day only and is due to the requirements of Colorado House Bill 15-1367, which states:

If for the fiscal year 2014-2015, fiscal year spending is greater than twelve billion eighty million dollars ($12,080,000,000.00) or if the revenue from retail marijuana taxes is greater than sixty-seven million dollars ($67,000,000.00), then on September 16, 2015 the rate of the tax imposed under subparagraph (i) of this paragraph (a) is reduced as specified in section 20(3)(c) of article x of the state constitution.

That is right – sales greater than $67M!

Colorado began selling marijuana in January 2014, and has collected over $117M in excise taxes since the start date per the Colorado DOR website. While this amount is small in comparison to the annual budgets that encompass all jurisdictions within Colorado, $117M in unplanned excise tax collections from recreational use of marijuana certainly does not hurt!

The Huffington Post recently reported that the State of Colorado designates a significant part of the marijuana excise tax revenues to the local school systems, providing them with over $23M in funds to support the “Building Excellent Schools Today” (BEST) grant program. This provides “needy” jurisdictions with grant money to bring school communities and systems up to par with their higher performing schools.

Additionally, Matt Ferner, with The Huffington Post, writes how the “blunt bucks” have contributed over $8M to assist with medical marijuana research, specifically, the effects of cannabis oil. So all in all, the legalization of marijuana for recreational use in the state of Colorado has been a success. J. Skyler McKinley, deputy director of Colorado Gov. John Hickenlooper's (D) Office of Marijuana Coordination, told the Huffington Post, “Colorado officials look at marijuana the same way they look at any other commodity market in Colorado -- just another place where the state gets some revenue, but doesn't stake its whole budget on it.”

So if you are in or around Colorado, make sure you are taking advantage of this sales tax break and support your local marijuana retailers on “Weed Wednesday,” September 16, 2015.

Want to learn more about Colorado sales tax? Read our blog EYE ON Colorado Sales Tax.

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Topics: sales tax sales tax news sales tax filing
1 min read

EYE ON Connecticut Sales Taxes

By Jeff Meigs on Thu, Sep 10, 2015 @ 10:00 AM

 

Finally, a state with no local option sales or use taxes.

If you’ve been following the EYE ON series, Connecticut is the first state (in alphabetical order) that has state level sales and use taxes only. The general sales and use tax rate is 6.35%.  While sales tax compliance is fairly straightforward in Connecticut, there are a few exceptions.

Topics: sales tax compliance sales tax sales tax news
1 min read

One Size Does Not Fit All - Why You Need Sales Tax Systems Support

By Anne Birkmann on Tue, Sep 08, 2015 @ 01:19 PM

For many businesses, when it comes to sales tax compliance, they must deal with data that is sourced from multiple systems.  Businesses often have e-commerce sites and legacy invoicing systems that are configured differently. Any type of acquisition may introduce additional systems – all with different methods of tracking sales tax. The differing systems can result in data that is inconsistent in format and content.

Topics: sales tax compliance sales tax
2 min read

Amnesty Anyone?

By Carol McIlvaine on Thu, Sep 03, 2015 @ 03:47 PM

 

Topics: sales tax compliance taxability
2 min read

Has Your Sales Tax Outsourcing Engagement Gone Sideways?

By Brian Greer on Tue, Sep 01, 2015 @ 12:55 PM

Sales tax outsourcing engagements can occasionally go “sideways” and a change in vendors is necessary. As year-end rapidly approaches, it’s a good time to evaluate certain business activities and consider a change in your sales tax outsourcing relationship.

3 min read

EYE ON Colorado Sales Taxes

By Jeff Meigs on Fri, Aug 28, 2015 @ 10:31 AM

Colorado has the lowest state sales tax rate in the country at 2.9% (except for the 5 states that don’t impose any sales tax). But don’t get too excited since there are a number of local jurisdictions within Colorado that impose sales taxes – taking the average total sales tax rate to about 7.5%.

Topics: sales tax calculation sales tax news
1 min read

Sales and Use Tax Compliance - Deadlines, Deadlines and More Deadlines

By Robert Dumas on Wed, Aug 26, 2015 @ 09:53 AM

'Tis the season…and it never seems to end. We have been communicating with many CPA firms during the month of August regarding numerous client issues and partnering opportunities. Almost without exception, the firms we contacted indicated they did not have the capacity to do anything new until after the September 15 and October 15 income tax deadlines. This is indicative of the life of most CPAs. We schedule our lives around a never-ending list of deadlines.

Topics: sales tax compliance CPA
2 min read

EYE ON California Sales Taxes

By Jeff Meigs on Tue, Aug 25, 2015 @ 10:00 AM

Like most states, California imposes a sales tax on the sale of tangible personal property – but relatively few enumerated services. As you might expect, California is rather attractive for software companies; electronic downloads of software and cloud computing are not taxable in California.

Topics: sales tax sales tax news
1 min read

Top 6 File Formatting Tips for Processing Your Sales Tax Returns

By Anne Birkmann on Tue, Aug 18, 2015 @ 11:17 AM

Sales and use tax compliance can be a tricky business and your data is a critical part of the process. Last month I wrote about the importance of establishing an effective data management plan as part of your overall sales tax compliance process.   Today I want to discuss the importance of formatting your files so that your data is mapped correctly.

Topics: sales tax compliance sales tax filing
2 min read

The Final Countdown

By Noelle Ard on Thu, Aug 13, 2015 @ 11:25 AM

In the words of the popular 80’s band, Europe: It’s the final countdown!!!

Okay, we actually have about 139 days until the end of the year, however, when you are in sales and use tax compliance, the days and the months go by in a blink of an eye!

Topics: sales tax compliance sales tax news sales tax filing
1 min read

Sales Tax Bites

By Brian Greer on Tue, Aug 11, 2015 @ 10:39 AM

Looking back on last week, I talked with several companies that were overwhelmed with how to address their sales tax compliance obligations. In each situation, the company was out of compliance in multiple states. The myriad of nexus issues, taxability issues, customer exemptions, registration requirements, how to get tax on their invoices, etc. had brought them to a spot where they knew they needed to do something … but they didn’t know where to begin.

Topics: sales tax compliance sales tax sales tax audits
2 min read

EYE ON Arkansas Sales Tax

By Jeff Meigs on Fri, Aug 07, 2015 @ 10:00 AM

Arkansas is a fairly straightforward state from a sales and use tax perspective. Sales and use taxes apply to the sale of tangible personal property and some enumerated services. Unlike Alaska, Alabama and Arizona, all Arkansas local sales and use taxes are administered by the state. That means, there is a single sales and use tax return filed for all state and local sales and use taxes – rather than having to file a separate return for each local jurisdiction.

Topics: sales tax sales tax news sales tax filing
2 min read

Helping CPA Firms Identify Sales and Use Tax Risks

By Robert Dumas on Tue, Aug 04, 2015 @ 11:30 AM

In my last blog, I discussed the opportunity CPA firms have to use sales and use tax issues as a way to add value to their clients and further cement the relationships and related revenue stream. As promised, this blog provides the following action items for identifying sales and use tax risk with your client:

Topics: sales tax sales tax audits CPA
18 min read

Sales Tax Holidays - Love Them or Hate Them?

By Carol McIlvaine on Thu, Jul 30, 2015 @ 04:28 PM

Shoppers love sales tax holidays and while it may bring them into stores and online to shop, it can also be a nightmare for retailers. Although controversial at times, there is no doubt these tax-free incentives drive up revenue. Unfortunately, retailers have to spend time getting prepared for these holidays. They may require dollar thresholds, special temporary tax rates, or no tax at all on items that are usually taxable. In some cases, retailers have to add special programing to their POS systems or temporary overrides. Because the criteria are so complex, some companies may decide to only partially implement the rules into their POS systems or not all and choose to blanket turn off sales tax and pay the tax due when they file their returns, out of pocket. Either way, this could be very expensive and labor intensive to keep up with.

Retailers may also struggle with how to identify which items meet the specific criteria of the tax-free holiday in each state. For example, how is a retailer going to know if an item is for non-business use? What defines an accessory?   Are tablets considered to be a computer? These are all things that have to be taken into account, and all retailers whether large or small can be impacted.

Many of these sales tax holidays take place one or two weekends before the start of the school year, so it’s perfect timing for back to school shoppers. You can expect to save on school supplies, clothing, footwear, certain electronics, etc. For example, if you have a child that is in need of a new computer, this may be a good time to take advantage of back to school sales and pay no sales tax in Georgia.

Below are the states offering sales tax holidays and the criteria covered:

Alabama (Abbeville Police Jurisdiction and Alabaster): 8/7/2015 – 8/9/2015
  • Non-Business Purchases of Books - $30 or less per item
  • Non-Business Purchases of School Supplies - $50 or less per item
  • Clothing - $100 or less per item
  • Computers - $750 or less per item

Arkansas: 8/7/2015 – 8/9/2015

  • School Supplies, Art Supplies, and Instructional Materials – No limit
  • Clothing Accessories - $49.99 or less per item
  • Clothing - $99.99 or less per item

Georgia: 7/31/2015 – 8/1/2015

  • School Supplies - $20 or less per item
  • Clothing and Footwear - $100 or less per item
  • Computers and Accessories - $1,000 or less per item

Iowa: 8/7/2015 – 8/8/2015

  • Clothing and Footwear - $99.99 or less per item

Maryland: 8/9/2015 – 8/15/2015

  • Clothing and Footwear - $100 or less per item

Mississippi (Excluding Enterprise and Heidelberg) : 7/31/2015 – 8/1/2015

  • Non-Business Purchases of Clothing and Footwear - $99.99 or less per item

Ohio: 8/7/2015 – 8/9/2015

  • School Supplies & School Instructional Material - $20 or less per item
  • Clothing and Footwear - $75 or less per item

Oklahoma: 8/7/2015 – 8/9/2015

  • Clothing and Footwear - $99.99 or less per item

Puerto Rico: 7/17/2015 – 7/18/2015

  • Purchases of School Uniforms and School Supplies – No limit

South Carolina: 8/7/2015 – 8/9/2015

  • Non-Business Purchases of Clothing and Footwear, Computers, and School Supplies - $99.99 or less per item

Texas: 8/7/2015 – 8/9/2015

  • Clothing and Backpacks and School Supplies (All school supplies and backpacks for use by non-elementary and secondary students are taxable) - $99.99 or less per item
Topics: sales tax sales tax filing
2 min read

EYE ON Arizona Sales Tax

By Jeff Meigs on Thu, Jul 30, 2015 @ 12:17 PM

Arizona doesn’t have a traditional “sales tax” – instead, Arizona imposes a transactions privilege tax (“TPT”) on the sale of tangible personal property and certain services. However, the TPT is the equivalent of a sales tax in almost all respects.

Topics: sales tax sales tax news sales tax filing
1 min read

Why You Need A Data Management Plan For Sales Tax Compliance