5 min read

What's New in Sales and Use Tax?

By Robert Dumas on Tue, Aug 03, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates. 

Topics: sales tax compliance sales tax filing
1 min read

Sales Tax Complexity Snapshot: Chicago

By Robert Dumas on Thu, Jul 29, 2021 @ 11:00 AM

Sales tax is complex for any business selling into multiple states. But there are specific states and jurisdictions that make it extra confusing for those trying to maintain compliance. One such location is Chicago, Illinois.

Topics: sales tax compliance sales tax filing
2 min read

Resale Certificates: What They Are and How to Use Them

By Robert Dumas on Tue, Jul 27, 2021 @ 11:00 AM

An exemption certificate is used to exempt an otherwise taxable transaction from sales tax. The most common exemption certificate is a resale exemption certificate (aka a resale certificate). In the absence of a valid resale certificate, an auditor is likely to assume the transaction was taxable. As a result, it’s critical for the seller to maintain copies of these resale certificates in the event of an audit. 

Topics: sales tax compliance sales tax filing
4 min read

Calculation vs. Compliance: A Deep Dive into Two Important Pieces of Your Sales Tax Process

By Robert Dumas on Thu, Jul 22, 2021 @ 11:00 AM

For most businesses, sales tax is not a top priority. It probably doesn’t even make the top 5 list! But if not managed correctly, it can cause major headaches. Understanding the various aspects of your sales tax process is critical to minimize your risk and to keep your business on solid ground as it relates to sales tax.

Topics: sales tax compliance sales tax calculation
3 min read

Home Rule: Can Local Jurisdictions Create Sales Tax Obligations?

By Robert Dumas on Tue, Jul 20, 2021 @ 11:00 AM

There’s no way to sugarcoat it: Sales tax obligations are already difficult at the state level, but when you bring it down to local jurisdictions, or home rule jurisdictions, you get the next level of complexity.

Topics: sales tax compliance sales tax news
4 min read

Monthly Sales and Use Tax Update

By Robert Dumas on Thu, Jul 15, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates that occurred over the last month. 

Topics: sales tax compliance sales tax news
3 min read

TaxConnex Launches New Website

By Robert Dumas on Tue, Jul 13, 2021 @ 11:00 AM

We are very excited to announce the launch of our newly designed website. Visit us at www.taxconnex.com to check it out! 

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

Preparing Your Business for Sales Tax Holidays

By Robert Dumas on Thu, Jul 08, 2021 @ 11:00 AM

Many states use sales tax holidays to waive or reduce sales tax on various items. These holidays can be annual or even two or more times a year. Online purchases usually receive the same tax treatment during these holidays as in-person purchases; remote sellers aren’t permitted to charge tax on qualifying goods during sales tax holidays, but how do you know where this is happening and when or when not to charge sales tax?

Topics: sales tax compliance sales tax
2 min read

Missouri Enacts Economic Nexus

By Robert Dumas on Tue, Jul 06, 2021 @ 11:00 AM

Missouri has officially become the last state with a state-wide sales tax to enact economic nexus. 

 The Show Me State follows on the heels of Florida, where economic nexus kicked in as of July 1 for remote sellers and marketplace facilitators. 

Topics: sales tax compliance sales tax
3 min read

Your Personal Responsibility in Sales and Use Tax Non-Compliance

By Robert Dumas on Thu, Jul 01, 2021 @ 11:00 AM

Sales tax is a significant revenue source for many states. In fact, according to the Tax Policy Center, for many states, it can comprise 25%-35% of a state’s revenue.

Topics: sales tax compliance sales tax
3 min read

3 Benefits to a Voluntary Disclosure Agreement

By Robert Dumas on Tue, Jun 29, 2021 @ 11:00 AM

A voluntary disclosure agreement (VDA) is a legal means for taxpayers to self-report back taxes owed for income, sales, property, and other tax types. In exchange for voluntarily reporting the tax due, states offer a waiver of some penalties and other benefits to the business. If back taxes are not disclosed but are instead discovered through an audit, the taxpayer is at a disadvantage and will end up being assessed various penalties plus interest plus all historical tax due.

Topics: sales tax audits VDA
2 min read

Missouri Inches Toward Economic Nexus

By Robert Dumas on Thu, Jun 24, 2021 @ 11:00 AM

A bill to enact economic nexus requirements – creating a sales and use tax obligation on remote sellers and marketplace facilitators – awaits only a signature to become law in Missouri.

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

3 Years Post-Wayfair: A Look Back

By Robert Dumas on Tue, Jun 22, 2021 @ 11:00 AM

June 21 marked three years since the landmark decision in the South Dakota v. Wayfair case. The years since June 2018 have been unlike anything in the history of sales tax.

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

Legalization and Taxation of Cannabis

By Robert Dumas on Thu, Jun 17, 2021 @ 11:00 AM

Legalization of cannabis and how it would be taxed has been a discussion for many years. But as states continue to pass laws legalizing the sale of cannabis, the businesses trying to capitalize on the market are struggling with the complexities of taxation as it differs from other sales.  

Topics: sales tax compliance taxability
4 min read

Questions to Ask Your Sales Tax Provider Before You Sign the Contract

By Robert Dumas on Tue, Jun 15, 2021 @ 11:00 AM

They said it would be simple.  They said they could automate it all, but in fact, you’re still doing a lot of the work.  Why are you paying more penalties for missed notices and late payments than you were before you started working with your sales tax vendor?  Guess what – we frequently hear these situations from businesses ready to make a switch. The good news is there are other providers that put the client first and ensure sales tax is managed correctly. You just have to know what to ask when investigating your potential provider.

Topics: sales tax nexus sales tax compliance
7 min read

5 Steps to Tracking Your Economic Nexus Footprint

By Robert Dumas on Thu, Jun 10, 2021 @ 11:00 AM

Your sales tax obligations start with whether or not you have sales tax nexus. Without it, you have no obligation to collect and remit sales tax to specific taxing states or jurisdictions. Your sales tax nexus is determined by either a physical or economic presence within a taxing jurisdiction.  

Topics: sales tax nexus sales tax compliance
5 min read

Monthly Review of What's New in Sales & Use Tax

By Robert Dumas on Tue, Jun 08, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues to prove that. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
3 min read

State Discounts for Sales Tax

By Robert Dumas on Tue, Jun 01, 2021 @ 11:00 AM

Collecting and remitting sales tax can be onerous – and expensive – for any business. That’s one reason some states give a collection discount to help with the costs of managing sales tax. 

Topics: sales tax compliance sales tax
5 min read

Taking a Look at Sales Tax Exemptions and Why They're Important

By Robert Dumas on Thu, May 27, 2021 @ 11:00 AM

Taking advantage of sales and use tax exemptions can save your business money and headaches. But exemptions can be harder to secure in some states than in others.

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

Monitoring Economic Nexus Thresholds - Gross Receipts or Taxable Sales?

By Robert Dumas on Tue, May 25, 2021 @ 11:00 AM

Having a full understanding of your sales tax obligations is important for your peace of mind.  But, like most things in sales tax, this is easier said than done. It’s difficult enough to keep up with the different economic nexus thresholds per state, but for some states, the revenue thresholds are based on gross sales, and in other states, they are based on taxable sales. 

Topics: sales tax compliance taxability
4 min read

7 Steps to Make an Easy Transition to a New Sales Tax Outsourcing Provider

By Robert Dumas on Thu, May 20, 2021 @ 11:00 AM

We are approaching the three-year mark of the introduction of economic nexus and the South Dakota v. Wayfair decision.  In order to address their expanding sales tax obligation, many businesses decided to outsource the sales tax process and chose an “automated” solution. If you are one of these businesses, you may now realize that much of the sales tax process falls on your shoulders.

Topics: sales tax compliance sales tax filing
5 min read

7 Ways a Business is Selected for Audit

By Robert Dumas on Tue, May 18, 2021 @ 11:00 AM

As we entered 2021, many industry experts believed that state sales tax audits were likely to increase sharply due to the loss of state revenue during the pandemic. Likewise, in a recent TaxConnex survey we saw that two out of five respondents agree with the experts, saying that they expect sales tax audits to become more common over the next two years. 38% of respondents said they believe audit levels will stay the same, and in a separate question, 66% have already seen an increase in the number of audits in the past two years.

Topics: sales tax sales tax news
3 min read

Taxability and Your Products and/or Services - Easy Answer Right? It Depends.

By Robert Dumas on Thu, May 13, 2021 @ 11:00 AM

‘It depends’ is a commonly used phrase when it comes to sales tax, and a quite frustrating one at that. We know that. But when it comes to taxability, it’s often our answer. 

Topics: sales tax sales tax news
6 min read

4 Key Pieces of Your Sales Tax Compliance Process

By Robert Dumas on Tue, May 11, 2021 @ 11:00 AM

Both the process of reporting sales tax and the level of sales tax detail required varies from state to state.  Understanding the nuances of each state will help you avoid any missteps resulting in jurisdictional-imposed penalties.

Topics: sales tax compliance sales tax
4 min read

What's New in State Sales and Use Taxes

By Robert Dumas on Thu, May 06, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues that trend. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
5 min read

Unexpected Growth Can Mean Sales Tax Obligations

By Robert Dumas on Tue, May 04, 2021 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

Every business owner wants their company to grow. And when that growth is unexpected, it feels that much sweeter. But don’t forget that success that comes from selling into more states can also expand your sales tax burdens.

Businesses that sell into multiple states or jurisdictions have to pay attention to sales tax thresholds, and it’s not a one-time project. Almost all states and more than a few localities have enacted some form of economic presence as a way to enforce sales tax obligations ever since the 2018 Supreme Court Wayfair decision. Businesses must also be aware of triggering the obligation to collect and remit sales tax due to a physical presence. A physical presence is often seen as your physical office location but can be determined by where your inventory is stored, where employees work or where third-party contractors are utilized, among other criteria.

Having either a physical presence or an economic presence can lead to sales tax nexus, or the connection a business has with a state or taxing jurisdiction. Nexus can happen quickly (or over time) and for a variety of reasons.

Ways of creating a sales tax obligation

In the United States, a business’s obligation to collect and remit sales tax starts with nexus. Sales tax nexus can be categorized into economic or physical.

Economic nexus requires remote sellers that may not have previously had a physical presence to collect sales tax because they’ve reached state and jurisdiction revenue thresholds or reached certain transaction thresholds. In South Dakota, for instance, the revenue threshold is $100,000 in sales or 200 transactions in the previous or current calendar year. Many states mirror these same thresholds, while other states set their own parameters. Florida and Missouri have not implemented any economic nexus standards — but stay tuned as each state is considering options.

Physical nexus means a business has a direct connection to a state. Most often this happens when a business operates out of a brick-and-mortar location in a tax jurisdiction. Other activities that can create a physical presence/nexus include employees or offices in a state, sales reps or agents visiting a state, delivery vehicles or maintenance or repair services in a state, attending trade shows in a new state, or inventory stored in a state.

Topics: sales tax nexus sales tax
5 min read

Zero-Due Returns: What They Are and When You Have to File Them

By Robert Dumas on Thu, Apr 29, 2021 @ 11:00 AM

Suppose youre registered for sales tax in a jurisdiction because you have established sales tax nexus.  For various reason though, you don’t have any sales tax to remit.  You may think that because you haven’t collected any sales tax, you have no return to file. 

Topics: sales tax sales tax filing
5 min read

3 Common Missteps of Sales Tax

By Robert Dumas on Tue, Apr 27, 2021 @ 11:00 AM

Sales tax obligations are getting more complicated for businesses of all industries. And it takes just a few mistakes to add up to a big liability and hefty fees. In this blog, we’ll talk to some of the common missteps businesses make when trying to manage sales tax on their own.

Topics: sales tax nexus sales tax news
4 min read

Add Florida to the List of States with Economic Nexus!

By Robert Dumas on Thu, Apr 22, 2021 @ 11:00 AM

Topics: sales tax nexus sales tax news
3 min read

Sales Tax Compliance: Automated Returns or Service Provider?

By Robert Dumas on Tue, Apr 20, 2021 @ 11:00 AM

This time of year, everybody’s mind is on income tax preparation. And for many accountants and CPA firms, this time of year means extra-long hours and more time spent managing clients’ finances.

The fact is, when it comes to many companies’ federal and state income tax returns, they don’t rely on an automated income tax return. They turn to experts. Either those that they’ve hired internally or the trusted CPA firm they’ve utilized for years.

Topics: sales tax compliance sales tax filing
4 min read

Selling Into the U.S. - Understanding How Customer Location Impacts Which Sales Tax Rates and Rules You Apply

By Robert Dumas on Thu, Apr 15, 2021 @ 11:00 AM

The United States has possibly the world’s most complex sales tax regime. This is because each state sets its own sales tax rules, and states often take widely varying approaches. As a result, each state has a different tax framework, with varying rules around everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, local area tax jurisdictions also have power over some aspects of taxation and can set different rules for their area.

Topics: sales tax compliance sales tax
3 min read

5 Steps to a Complete Sales Tax Filing Process

By Robert Dumas on Tue, Apr 13, 2021 @ 11:00 AM

Sales tax is more complicated than ever, especially in a post-Wayfair world. And what’s worse is that everyone who says they’re simplifying sales tax is still leaving the hardest parts – and the liability – up to you. Don’t let sales tax compliance overwhelm you. Make the right decisions for your business so you can best manage compliance in a way that doesn’t overburden your finance team or put your business at risk of penalties and fees.

Topics: sales tax compliance sales tax filing
2 min read

Holdout States Moving Toward Sales Tax Requirements

By Robert Dumas on Thu, Apr 08, 2021 @ 11:00 AM

Of the 50 states, 45 (plus DC) charge a state-wide sales tax. Two of those states that have a state-wide sales tax, Missouri and Florida, have yet to adopt economic nexus standards set by the 2018 South Dakota v. Wayfair case. At least for now.

Topics: sales tax sales tax news
4 min read

Sales and Use Tax Updates from March

By Robert Dumas on Tue, Apr 06, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues to prove that. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
4 min read

Understanding Sales Tax Exemptions and Exclusions

By Robert Dumas on Thu, Apr 01, 2021 @ 11:00 AM

Topics: sales tax compliance sales tax
4 min read

Overlooked Aspects of Your Compliance Process

By Robert Dumas on Tue, Mar 30, 2021 @ 11:00 AM

When you think about tax compliance, of any kind, the first thing that comes to mind is filing, or even the tax return itself. Compliance with sales tax goes way beyond that.

Topics: sales tax nexus sales tax compliance
4 min read

Taxability for Contractors

By Robert Dumas on Thu, Mar 25, 2021 @ 11:00 AM

A contractor is generally defined as someone who provides improvements to real property on a lump sum contract basis. From a sales and use tax perspective, there isn’t much of a difference between a subcontractor and a prime or general contractor. 

Topics: sales tax compliance taxability
4 min read

Are Digital Ad Taxes Spreading?

By Robert Dumas on Tue, Mar 23, 2021 @ 11:00 AM

Companies that sell digital products in the U.S. should know about a relatively new kind of tax – and tax obligation. 

Topics: sales tax compliance taxability
7 min read

Wayfair: Sales Tax and State Income Tax Implications

By Brian Greer on Thu, Mar 18, 2021 @ 11:00 AM

Topics: sales tax nexus sales tax compliance
7 min read

Don't Test Your Luck with Non-Compliance

By Robert Dumas on Tue, Mar 16, 2021 @ 11:00 AM

This St. Patrick’s Day, don’t look to four-leaf clovers, pots of gold or leprechauns to bail you out of trouble with sales tax. If your company has sales tax obligations and doesn’t have a process yet in place, plan for the risks of non-compliance.

Topics: sales tax compliance sales tax audits
3 min read

TaxConnex Rounds Out 2020 with an 18% Growth in Organic Revenue and an Industry Leading Net Promoter Score (NPS) of 83

By Robert Dumas on Fri, Mar 12, 2021 @ 09:00 AM

TaxConnex is excited to report exciting growth coming out of 2020. While 2020 was full of chaos and trials, sales tax filings and returns did not stop, and we were able to continue to assist our clients and grow as a company in both employee size and revenue.  

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

Sales Tax Updates for Technology Companies

By Robert Dumas on Thu, Mar 11, 2021 @ 11:00 AM

Sales tax obligations regarding software and other technology-related solutions can often come down to location and definition. And the definition is potentially different depending on the location.

Four states recently took a closer look at how sales tax applies to technology-related solutions, one of the more confusing industries for complying with sales and use tax requirements.

Topics: sales tax nexus sales tax compliance taxability
6 min read

How To Evaluate Where You Have Established Economic Nexus

By Robert Dumas on Tue, Mar 09, 2021 @ 11:00 AM

Sales tax is more complicated than ever, especially in a post-Wayfair world. And what’s worse is that everyone who says they’re simplifying sales tax is still leaving the hardest parts – and the liability – up to you. In fact, a recent survey TaxConnex conducted through Porter Research found that the top sales tax worry of finance pros in 2021 was understanding changing nexus laws. 

Topics: sales tax nexus sales tax compliance
10 min read

Sales and Use Tax Updates from February

By Robert Dumas on Tue, Mar 02, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 is off to an especially busy start. Here’s a review of some of the recent changes and updates.

Topics: sales tax compliance sales tax news
4 min read

Understanding Use Tax

By Robert Dumas on Thu, Feb 25, 2021 @ 11:00 AM

You may think that if you do not have physical or economic tax nexus in a state, you do not have any tax obligations. However, this may not be the case. You can still have obligations to the certain tax authorities in a state even where you do not have nexus and are not required to collect and remit sales tax in the state.  

The reason? Use tax. Specifically, consumer’s use tax.

Topics: sales tax compliance sales tax audits
8 min read

Sales Tax Audits - The Danger Grows

By Robert Dumas on Tue, Feb 23, 2021 @ 11:00 AM

Many industry experts believe that as state tax revenues continue to dry up from the economic shutdown and continuing pandemicstate sales tax audits are likely to increase sharply in the coming months. States are in the same boat as many businesses when it comes to the stress and financial strain that comes along with the pandemic, and an increase in audits would help states recoup lost revenue and minimize budget deficits.

Topics: sales tax compliance sales tax audits
4 min read

Physical Presence Checklist

By Robert Dumas on Thu, Feb 18, 2021 @ 11:00 AM

Sales and use tax obligations are determined by your nexus within a state or jurisdiction. Sales and use tax nexus is defined as the connection between a person or entity and a taxing jurisdiction. It is the basis for all your sales tax decisions because without sales tax nexus, you have no further sales tax obligation to a state.

Topics: sales tax compliance taxability
4 min read

Sales Tax and Valentine's Day

By Robert Dumas on Thu, Feb 11, 2021 @ 11:00 AM

Candy, flowers, jewelry, dinners: The gifts may be the same, but Cupid’s arrow will fly in new online directions this year for Valentine’s Day presents. And it might land right on your company’s bottom line after sales and use tax obligations.

Topics: sales tax nexus sales tax compliance
12 min read

Selling Into States with Unusual Sales Tax Laws

By Robert Dumas on Tue, Feb 09, 2021 @ 11:00 AM

If you sell into the handful of states that don’t have nexus or don’t have general sales tax, you might think you’re home free when it comes to obligations to remit sales tax. Maybe, and maybe not. 

Topics: sales tax compliance taxability
2 min read

Why Are Businesses Dissatisfied With the Way They Manage Sales Tax?

By Robert Dumas on Thu, Feb 04, 2021 @ 11:00 AM

At the end of last year, TaxConnex commissioned Porter Research Group to conduct a survey of 100 finance leaders to understand the growing concerns they face related to sales tax heading into 2021.

Topics: sales tax compliance sales tax
3 min read

Telecom Tax and Other Specialty Transactions Taxes

By Robert Dumas on Tue, Feb 02, 2021 @ 11:00 AM

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: telecom tax taxability
3 min read

2021 State Sales and Use Tax Update

By Robert Dumas on Thu, Jan 28, 2021 @ 11:00 AM

There’s always something changing or new going on in the world of tax, especially sales tax. Here’s a review of some of the changes and updates in the last few months.

Topics: sales tax compliance sales tax news
2 min read

Massachusetts Enacts Provision for Accelerated Sales Tax Remittance

By Robert Dumas on Tue, Jan 26, 2021 @ 11:00 AM

Massachusetts has joined the ranks of states that have provisions for accelerated remittance of sales tax.

Topics: sales tax compliance sales tax news
3 min read

Sales Tax and Your 2021 Growth Goals

By Robert Dumas on Thu, Jan 21, 2021 @ 11:00 AM

If your online company looks to expand its interstate sales in 2021, know one thing: Your plan involves risks and new responsibilities. The key is learning how to manage both, as sales tax non-compliance or errors can bring stiff penalties.

Topics: sales tax telecom tax
3 min read

How to Choose the Right Sales Tax Provider

By Robert Dumas on Tue, Jan 19, 2021 @ 11:00 AM

Picking the right provider to handle your business’s sales and use tax compliance is a big decision.

Topics: sales tax telecom tax
3 min read

Telecommunications Tax Exemptions

By Robert Dumas on Thu, Jan 14, 2021 @ 11:00 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.  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.

Topics: sales tax telecom tax
2 min read

Top Sales Tax Rules to Help Your Business Remain Compliant

By Robert Dumas on Tue, Jan 12, 2021 @ 11:00 AM

Sales tax compliance is complex, there’s no doubting it. While many hoped that the Supreme Court decision in South Dakota vs. Wayfair would make things more clear, it did quite the opposite.

Topics: sales tax compliance south dakota vs. wayfair
4 min read

Understanding the Taxability of Your Products and/or Tech Services

By Robert Dumas on Thu, Jan 07, 2021 @ 11:00 AM

If you were to read our 5 Steps to Sales Tax Compliance, or any guide on maintaining sales tax compliance, understanding the taxability of your products and/or services would be one of the first steps.

Topics: sales tax compliance taxability
3 min read

Understanding Sales Tax Obligations with Drop Shipments

By Robert Dumas on Tue, Jan 05, 2021 @ 11:00 AM

As if sales tax nexus and taxability rules weren’t confusing enough, throw in marketplace facilitators and drop shipments and it’s easy for a business of any size to want to give up on sales tax compliance.

Topics: taxability retail
3 min read

Alleviate Stress on Your Staff in 2021

By Robert Dumas on Thu, Dec 31, 2020 @ 11:00 AM

Your employees (like all of us) have more than enough headaches on all fronts headed into the new year. Back in April employees surveyed said that the pandemic is the most stressful time of their entire career. Now more than ever you owe it to your people – and to your business – to ease their problems when you can.

If you handle sales tax compliance in house, you’ve got your employees handling an unbelievably complex business function – and with 65% of businesses planning to grow across state lines* in the coming year, it may be more than they can manage.

Topics: sales tax compliance taxability
2 min read

Key Pieces of Your Exemption Certificate

By Robert Dumas on Tue, Dec 29, 2020 @ 11:00 AM

An exemption is an exception that eliminates the need to pay sales tax. The presumption is that all sales of tangible personal property are taxable unless specifically enumerated. The purchaser has the responsibility for determining whether a sale is exempt from tax. If the purchaser does not submit a valid exemption certificate to the business, the business must assess and collect the sales tax from the purchaser. The responsibility to determine the validity of the exemption certificate resides with the business. Without this exemption certificate, the state or jurisdiction in which you are registered will expect you to have collected sales tax. 

Topics: sales tax taxability
4 min read

Sales and Use Tax in 2020: A Look Back

By Robert Dumas on Tue, Dec 22, 2020 @ 11:00 AM

Someday people will probably use a lot of words to describe 2020. “Un-eventful” won’t be one of them.

The year’s ongoing pandemic affected almost every aspect of life – including, and in no small way, sales tax, which was already an area that has seen unprecedented change since the Supreme Court’s Wayfair decision in 2018.

Add to that, jurisdictions that are worried about how lockdowns have affected their tax revenue and you have a tumultuous year.

Here’s a look back at some of the year’s developments. 

Topics: sales tax sales tax news
2 min read

Managing More with Less

By Robert Dumas on Thu, Dec 17, 2020 @ 11:00 AM

With nearly 50 million Americans losing their jobs earlier this year and 11 million still unemployed nearly 10 months after the pandemic began, the reality of being forced to do more with less is being felt in every corner of almost every company, including the finance department. Hiring freezes and budget restrictions have left many finance teams struggling to keep up.

Topics: sales tax compliance sales tax
3 min read

Calculation and Compliance: The Importance of Having Both in Your Sales Tax Process

By Robert Dumas on Tue, Dec 15, 2020 @ 11:00 AM

We understand that sales and use tax may not be your biggest priority, but if not managed correctly, it can cause major headaches. Understanding the various aspects of your sales tax process is critical to minimize your risk and to keep your business on solid ground as it relates to sales tax.

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

Recent Cases Show You Shouldn't Mess with Sales Tax Obligations

By Robert Dumas on Thu, Dec 10, 2020 @ 11:00 AM

States may be getting tougher on sales tax delinquents as the pandemic drags on and tax revenues, in many places, take hits. Just ask Fiorella’s Landscaping in western New York.

Topics: sales tax compliance sales tax
2 min read

5 Myths About Voluntary Disclosure Agreements

By Robert Dumas on Tue, Dec 08, 2020 @ 11:00 AM

Voluntary disclosure agreements (VDAs) can be an effective way to mitigate prior period sales tax exposure. They can also come with a lot of misconceptions.

Topics: sales tax compliance VDA
1 min read

TaxConnex Releases New Research that Reveals Top Concerns Among Financial Leaders Responsible for Sales Tax in 2021

By Robert Dumas on Thu, Dec 03, 2020 @ 11:00 AM

Alpharetta, GA -  TaxConnex, Inc today released the results of a new survey finding that the increasing sales tax complexities, growing nexus, limited resources and additional audits are among the top worries of financial professionals in 2021.

Topics: sales tax compliance
2 min read

6 Benefits of Outsourcing Sales Tax Compliance

By Robert Dumas on Tue, Dec 01, 2020 @ 11:00 AM

 

In light of the Wayfair decision, and due to recent new hires in a new state or increased online sales, you’ve determined you meet sales tax nexus thresholds outside of just your home state and now you have to collect, file, and remit sales tax in multiple states. What a headache. To make matters worse, this is a compliance issue, so you must act. What do you do?

Topics: sales tax compliance
3 min read

Recent Happenings and Challenges in the World of Sales Tax

By Robert Dumas on Tue, Nov 24, 2020 @ 11:00 AM

One state’s efforts to join the Sales and Use Tax System (SUTS) and another state’s lawsuit against a world-famous auction house highlight recent challenges in the sales tax world.

Topics: sales tax compliance sales tax news
5 min read

Sales and Use Tax FAQs - Risk and Liability

By Robert Dumas on Thu, Nov 19, 2020 @ 11:00 AM

When it comes to managing sales tax compliance, for most businesses there are really three ways you can do it.

  1. Attempt to manage everything in-house
  2. Outsource sales tax compliance
  3. Do nothing and roll the dice.

So what happens if you attempt to manage the process in-house but lack the expertise and bandwidth to manage it effectively? Or what if you do nothing and decide to roll the dice? What are the risks associated with non-compliance? We’ve compiled some of the top questions we get from clients on the risk and liability of sales tax non-compliance.

Topics: sales tax compliance VDA
8 min read

4 Steps to Monitoring Your Sales Tax Obligations During the Holiday Shopping Season (and Beyond)

By Robert Dumas on Tue, Nov 17, 2020 @ 11:00 AM

It’s that time of year – holiday shopping is in full swingWhile the pandemic has continued to wreak havoc on retail locations, online sales continue to skyrocketSo while you’re busy with closing out your year, hopefully on a higher note, don’t forget about your sales tax obligations or you could wind up with a big lump of coal.

Topics: sales tax nexus sales tax compliance
3 min read

Complexities of Sales Tax: Technology

By Robert Dumas on Thu, Nov 12, 2020 @ 11:00 AM

Technology companies, and specifically software companies, have always had challenges related to managing sales tax. Understanding where they have a physical presence as well as the varying taxability rules associated with their products and services was complex. But with the proliferation of Software-as-a-Service (SaaS) as a delivery mechanism and Wayfair, the sales tax landscape has become exponentially more complex.

Tech companies – especially those dealing in downloads of software and (SaaS) delivery – can protect themselves if they understand key terms and processes.

Topics: sales tax nexus sales tax taxability
4 min read

Complexities of Sales Tax: Leasing

By Robert Dumas on Tue, Nov 10, 2020 @ 11:00 AM

Sales tax is complicated no matter the industry you are in. But the leasing industry brings out even more complicated nuances depending on the type of lease, support activities and even the leased item itself.

Topics: sales tax nexus sales tax taxability
4 min read

Sales Tax Automation Mistakes

By Robert Dumas on Thu, Nov 05, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

If your business has an obligation to collect and remit sales tax, then you know how complex the process can be. Whether you manage it all internally, work with a CPA, or use an outsourced provider or technology, you know that there are many moving parts. Automating part or all of the sales tax process is sometimes necessary to maintain compliance. However, in my experience, sales tax automation can be counterproductive in certain situations.

Topics: sales tax sales tax calculation
5 min read

State Sales and Use Tax Update

By Robert Dumas on Tue, Nov 03, 2020 @ 11:00 AM

There’s always something changing or new going on in the world of tax, especially sales tax. Here’s a review of some of the changes and updates that were announced in the last few months.

Topics: sales tax compliance sales tax news
3 min read

Complexities of Sales Tax: Construction

By Robert Dumas on Thu, Oct 29, 2020 @ 11:00 AM

If you’re a construction contractor – especially if you’re engaged in contracts in different states – you have to evaluate your sales tax responsibilities in each state where you have customers.

Topics: sales tax nexus sales tax taxability
7 min read

Sales Tax FAQs

By TaxConnex on Tue, Oct 27, 2020 @ 11:00 AM

We can’t say it enough – sales tax is complex. Whether you outsource aspects of the process or manage it all in house, there are a lot of moving parts and nothing seems to stay the same for long.

We’ve compiled some of the top questions we get from clients on sales & use tax. Part 1 of these questions was on sales tax and business services. Keep reading for some of our more introductory questions we get asked on a daily basis.

Topics: sales tax nexus sales tax
9 min read

Pitfalls of Sales Tax for the Manufacturing Industry

By Robert Dumas on Thu, Oct 22, 2020 @ 11:00 AM

“Manufacturing” for sales tax purposes is often defined as a physical application of materials and labor to change the characteristics of tangible personal propertyMakes sense, but does that mean your business is exempt? Not so easy. Every state has nuances on how sales tax applies to the manufacturing process and the various equipment and materials that are used and consumed.  There are many gray areas that can create signification exposure, or savings, for your business.   

Topics: sales tax compliance taxability
4 min read

Correctly File Your Sales Tax Returns in Four Steps

By TaxConnex on Tue, Oct 20, 2020 @ 10:00 AM

When looking at all that goes in to maintaining your business’s compliance in sales tax, the filing of your returns is often seen as one of the easiest tasks. Yet, that doesn’t mean there aren’t things that can trip you up in the process.

Topics: sales tax compliance sales tax filing
5 min read

Top Sales Tax Terms To Be Aware Of

By TaxConnex on Thu, Oct 15, 2020 @ 11:00 AM

As if understanding your nexus obligations wasn’t confusing enough, you throw in words and phrases like marketplace facilitator, TPP, tax situs and economic vs. physical nexus and even the most advanced finance professionals can be thrown for a loop.

Topics: sales tax compliance sales tax
4 min read

Sales Tax and Business Services – Your Top Questions Answered

By TaxConnex on Tue, Oct 13, 2020 @ 11:00 AM

Companies that perform services often see themselves as tax exempt, and in many cases that is true, but there are certain states and situations in which that is not the case. Gain a better understanding of your sales and use tax obligations with these frequently asked questions we have received from businesses that provide services.

Topics: sales tax nexus sales tax compliance taxability
4 min read

Can IP Addresses Be Used to Assess Sales Tax?

By TaxConnex on Thu, Oct 08, 2020 @ 11:00 AM

The short answer: maybe. What’s an IP address and how can it influence your company’s need to collect and remit sales tax to states?

When your customers access your website and make purchases, the customer is often providing a billing and/or shipping address which can be used to determine where sales tax applies. In certain online transactions, these physical addresses may not be available. As a result, an Internet Protocol (IP) address may be all that’s available. The IP address of the computer being used to access your website can be identified and via third party databases, the IP address can be mapped to a physical address for purposes of applying sales tax.

Topics: sales tax compliance taxability
4 min read

The Sales Tax Requirements of Selling Into Canada

By TaxConnex on Thu, Oct 01, 2020 @ 11:00 AM

U.S. sales tax post-Wayfair is confusing enough. What if you begin selling into a foreign country? You’ve heard it before that US sales & use tax laws are some of the most confusing, but how are things done with our neighbor to the north? Do the same rules apply, is it easier to understand?

Topics: sales tax compliance
3 min read

Latest Developments in State and Local Sales Tax

By TaxConnex on Tue, Sep 29, 2020 @ 11:00 AM

In Alabama, rising pandemic-related online shopping has been a “life saver” for the state’s municipal governments and a “financial vaccine for Alabama’s counties,” the state said. The state’s SSUT has taken in more than $309 million overall during the current fiscal year – almost double the tax generated during all of fiscal 2018-19. The number of online retailers in the program has also grown from fewer than 200 in 2017 to more than 2,900 today.

Under the SSUT formula, 50 percent of all revenues from online sales from companies participating in the program go to the state. The legislation also expanded the program to allow out-of-state online sellers to join the SSUT even if they have an affiliate with a brick-and-mortar presence in Alabama.

The Decatur, Ala., city council was also recently set to vote on giving a quarter of online sales tax revenue to the city’s schools in 2021. (A portion of the funds must support child-related nonprofits.) The city expects to get about $2 million in 2020 and again in 2021 from online sales tax.

Topics: sales tax compliance sales tax news
3 min read

5 Steps to Put Your Business on the Right Track to Maintain Sales Tax Compliance

By TaxConnex on Thu, Sep 24, 2020 @ 11:00 AM

It has been two years since the US Supreme Court passed the Wayfair decision which paved the way for states to enact economic nexus rules. At this point, the majority of finance professionals understand the need to maintain sales & use tax compliance. Most businesses have some type of process in place although it may not be comprehensive enough. What do you do when you discover you are out of compliance in some states? Or you acquire a business that has done very little to manage sales and use tax compliance?

In this blog, we’ll outline 5 steps that will put you on the right track to have your business prepped to maintain compliance.

Topics: sales tax nexus sales tax compliance
4 min read

Taxes in the Telecom World: Misconceptions and Advice

By TaxConnex on Tue, Sep 22, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

Taxes are an integral part of the telecom world. Taxes, fees and government surcharges on telecommunications services increased from 19.1% to 21.7% in 2019 (even as average monthly bills for consumers actually dropped).

In talking with countless telecommunications service providers about their various tax and regulatory requirements, there are some recurring themes I hear that can be troubling. These recurring issues tend to pop up with new VoIP service providers. Perhaps they’ve been in business for years previously — and they may have even had various sales tax obligations historically — but they are now offering VoIP services that expose them to a completely different set of tax and regulatory obligations.

Topics: telecom tax taxability
3 min read

State Benefiting from Economic Nexus During the Pandemic

By TaxConnex on Thu, Sep 17, 2020 @ 11:00 AM

States are still reeling in sales tax deficits brought on by the economic downturn during the pandemic, but the addition of economic nexus has appeared to have somewhat alleviated the deficits. States are starting to see an increase in online sales tax collections as more and more people remain online for work and shopping. 

Topics: sales tax south dakota vs. wayfair
8 min read

6 (Not So) Simple Steps to Sales Tax Compliance

By TaxConnex on Tue, Sep 15, 2020 @ 11:00 AM

Sales tax is complicated. Many sales tax companies will tell you it’s simple with their solution, but when you take a look at all that goes in to compliance – you will understand that no technology can fully automate or manage sales tax without a good bit of project management from your side 

Topics: sales tax compliance sales tax
3 min read

COVID Surcharges and Sales Tax

By TaxConnex on Thu, Sep 10, 2020 @ 11:00 AM

Lost sales, expenses for cleaning, more time and money for employee protection and training are just some of the reasons for businesses to claim they now have to charge extra to pay for responding to the pandemic (aka, “COVID surcharges”). In many places and for many industries these charges have become commonplace.

Topics: sales tax compliance sales tax
4 min read

Recent State Sales Tax Developments

By TaxConnex on Tue, Sep 08, 2020 @ 11:00 AM

A review of what’s been happening and updates states have made in sales & use tax so far in 2020.

Topics: sales tax sales tax news
1 min read

Instacart Sued For Not Charging Sales Taxes

By TaxConnex on Thu, Sep 03, 2020 @ 11:00 AM

The District of Columbia attorney general is suing grocery-delivery service Instacart for failing to pay hundreds of thousands of dollars in District sales tax.

Topics: sales tax sales tax news
1 min read

No Hike in Wyoming’s Sales and Use Taxes For Now

By TaxConnex on Tue, Sep 01, 2020 @ 11:00 AM

Wyoming lawmakers have declined to move forward with two bills to increase and broaden the state’s sales and use taxes, news outlets said.

Topics: sales tax sales tax news
7 min read

Address the Mess: Looking into the Complexities of Sales Tax

By TaxConnex on Thu, Aug 27, 2020 @ 11:00 AM

When it comes to sales tax, most businesses fit into one of three categories:

Topics: sales tax compliance sales tax
3 min read

2020 Sales Tax Updates

By TaxConnex on Tue, Aug 25, 2020 @ 11:00 AM

It’s been quite the year as many businesses and lives have been put on hold. But one thing that hasn’t stopped is the need to collect and remit sales tax. Even in the midst of a pandemic, sales tax updates have continued to happen. In this blog, we will take a look at some of the major sales tax developments that have happened so far in 2020.

Topics: sales tax compliance sales tax
3 min read

Taking a Look at the Exemption Certificate

By TaxConnex on Thu, Aug 20, 2020 @ 11:00 AM

A key document of sales & use tax is the exemption certificate.

Topics: sales tax compliance sales tax
3 min read

The ABCs of Sales Tax

By TaxConnex on Tue, Aug 18, 2020 @ 11:00 AM

Sales tax nexus is the basis for all your sales tax decisions. Without nexus, you have no further obligation to a state. If you do have sales tax nexus, then you need to dig a bit deeper and understand if your products and/or services are taxable. If they are, and you have nexus within a state that charges sales tax, in most instances you should register and start collecting sales tax. Simple right? Not so much.

Topics: sales tax compliance sales tax
15 min read

How Personnel Decisions Now Affect Your Nexus Later

By TaxConnex on Thu, Aug 13, 2020 @ 11:00 AM

The pandemic has changed the business world. But for how long? And what might happen to sales and use tax obligations when what were supposed to be temporary business-continuation measures harden into just the new way of working and doing business? 

 

Topics: sales tax nexus sales tax
3 min read

Is a VDA Right for Your Business?

By TaxConnex on Tue, Aug 11, 2020 @ 11:00 AM

Is a Voluntary Disclosure Agreement right for you? Voluntary Disclosure Agreements (VDAs) can be an effective tool in mitigating prior period sales tax exposure, however it may not always be the best solution.

Topics: sales tax VDA
1 min read

6 Easy Steps to Switching Your Sales Tax Compliance Provider

By TaxConnex on Thu, Aug 06, 2020 @ 11:00 AM

Is your outsourced sales tax compliance vendor making your life easier? It's a simple question, and if your answer is anything but yes, it may be time for a change. Sales tax compliance comes with a lot of complexity and liability. You shouldn’t be paying someone to do it for you but still managing the brunt of the headaches.

Topics: sales tax compliance sales tax
3 min read

Is Nexus Greener on the Other Side? Sales Tax in the U.S. vs Europe

By TaxConnex on Tue, Aug 04, 2020 @ 11:00 AM

Ever-changing thresholds, intensifying audits, some 12,000 taxing jurisdictions: No online business needs to be told how complex America’s sales tax burden can be.

Topics: sales tax nexus sales tax
16 min read

The Top 5 Misconceptions of Sales Tax Nexus

By TaxConnex on Thu, Jul 30, 2020 @ 11:00 AM

The complexity of sales tax has grown immensely in the last two years with the introduction of economic nexus due to the South Dakota vs Wayfair case You would think after two years things would have gotten easier, but that’s not really the case. Because of this, many businesses still have misconceptions about how Wayfair might affect them  not to mention cost them money and headaches. 

Topics: sales tax compliance sales tax
10 min read

Sales Tax M&A: Mitigation Options

By TaxConnex on Tue, Jul 28, 2020 @ 11:00 AM

Due to the pandemic, many businesses are in a precarious position relative to long-term survival. Some companies who previously were doing well are now in a situation in which a merger or acquisition could be their only way to survive.  No matter your situation, understanding how sales tax obligations could hinder your sale is important for any business involved or thinking about merging or being acquired

Topics: sales tax compliance sales tax
2 min read

Sales Tax Calculation Software - Do You Really Need It?

By TaxConnex on Thu, Jul 23, 2020 @ 11:00 AM

You’ve determined you have nexus and your products and/or services are taxable. Now how do you implement and actually charge sales tax? There are several ways to calculate and charge sales tax but many people lean towards letting a software handle it for them, but is this really the best solution for everyone?

Topics: sales tax compliance sales tax calculation
4 min read

How the Sales Tax Picture is Changing During the Pandemic - and Beyond

By Robert Dumas on Tue, Jul 21, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

The coronavirus has upended just about every aspect of life and business. We are all adjusting to a new way to work, live, shop and more, and it is hard for us to imagine when life will go back to normal, or how many of these changes will stay with us into the future.

Tax collection is one of the many things that has changed a lot recently, starting with postponements to file and pay income taxes at the federal level and in most states.

For sales and use taxes, some states implemented various forms of relief. This included extensions to file returns, tax payment deferral, and waivers of penalties and interest in some situations. But now that most of these extensions and waivers have expired, what does this mean for your business? 

Topics: sales tax compliance sales tax filing
3 min read

Top Marketplace Facilitator Questions Answered

By TaxConnex on Thu, Jul 16, 2020 @ 11:00 AM

We talk a lot about nexus and compliance processes in our content, but what about marketplace facilitators? It’s often a topic we stay away from - due to the fact that the majority of small businesses that utilize marketplace facilitators won’t need our help, but there are situations in which you still may need a sales tax professional to assist with your sales tax compliance process. In this blog we answer your top questions:

Topics: sales tax nexus sales tax compliance
3 min read

Reminder: Deferred Deadlines Looming for Sales Tax Filing

By TaxConnex on Tue, Jul 14, 2020 @ 11:00 AM

Weeks ago, state tax authorities lent a hand to companies ravaged by the pandemic and postponed sales-tax filing and payment deadlines. But that extra time is about to run out.

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

How To Qualify For Telecommunications Tax Exemptions

By TaxConnex on Thu, Jul 09, 2020 @ 11:00 AM

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

Topics: telecom tax
6 min read

The Practical Implications of Selling into Multiple US States

By TaxConnex on Tue, Jul 07, 2020 @ 11:00 AM

If you don’t live in the United States (or even if you do), the laws surrounding US Sales Tax can be quite confusing. In fact, the United States has possibly the world’s most complex sales tax regime. This is because each state sets its own sales tax rules, and states often take widely varying approaches. As a result, every state has a different tax framework, with variations in regulation covering everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, local area tax jurisdictions also have powers over some aspects of taxation and can set different rules for their area. 

Topics: sales tax nexus sales tax
4 min read

Navigating Drop Shipments, a Tricky Area of Online Business

By TaxConnex on Thu, Jul 02, 2020 @ 11:00 AM

Time for a refresher on drop shipments - Check out our blog from earlier this year on navigating drop shipments, or watch our quick video where Jeff & Brian break it down. 

Topics: sales tax nexus sales tax
10 min read

Top Sales Tax Compliance Considerations for Tech Companies

By TaxConnex on Tue, Jun 30, 2020 @ 11:00 AM

Technology companies have historically considered themselves fairly insulated from multi-state 

Topics: sales tax nexus sales tax
6 min read

Get Ready for Audits as States Keep Losing Sales Tax Revenue

By Robert Dumas on Thu, Jun 25, 2020 @ 11:00 AM

This article was written with contributions by Clark Calhoun of Alston & Bird. 

Topics: sales tax compliance sales tax audits
11 min read

You Can't Solve Sales Tax Problems with Technology Only

By TaxConnex on Tue, Jun 23, 2020 @ 11:00 AM

Since the Wayfair decision two years ago (the 2 year anniversary was just this past weekend)sales tax compliance has become a major priority for many businesses. These businesses all have varying levels of knowledge on the sales tax rules and regulations, but they all have one thing in common: they want a solution to the problem, and they want it to be simple.   

Topics: sales tax compliance sales tax calculation sales tax filing
5 min read

Establishing a Sales Tax Compliance Filing Process

By TaxConnex on Thu, Jun 18, 2020 @ 11:00 AM

You’ve established you have nexus in multiple states, and understand the taxability of your products and services, now what?  

Topics: sales tax compliance sales tax filing
3 min read

Can Employees Sheltering in Place Create Nexus for Your Company?

By TaxConnex on Tue, Jun 16, 2020 @ 11:00 AM

The pandemic has prompted shelter in place orders across the country, meaning many employees have been working from home to contain COVID-19. Some of your workers may have also chosen to work in second homes or with different family for a multitude of reasons ranging from comfort to avoiding hot spots of the outbreak.

Topics: sales tax nexus sales tax
7 min read

Back to the Basics: The Ins and Outs of Sales Tax Nexus

By TaxConnex on Thu, Jun 11, 2020 @ 11:00 AM

The US Supreme Court ruling in South Dakota v. Wayfair, Inc. et al gave rapid rise to the new sales and use tax obligations for online sellers. The rule treats a virtual storefront similar to a physical storefront. How did we get there and what should every business be doing to reduce risk?  

Topics: sales tax compliance sales tax
5 min read

5 Costly Sales & Use Tax Errors

By TaxConnex on Tue, Jun 09, 2020 @ 11:00 AM

Sales and use tax compliance is not only difficult and time-consuming – it’s also expensive if you do it wrong.

Topics: sales tax compliance sales tax
5 min read

Should You Cancel Your Sales Tax Registration?

By TaxConnex on Thu, Jun 04, 2020 @ 11:00 AM

Some time ago you did your homework regarding sales tax. You discovered which of the economic nexus thresholds that you meet, calculated your sales in those states and when required have collected and remitted the sales tax. To do this, you obtained a sales tax license in each jurisdiction where you established nexus.

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

7 Indicators It's Time to Switch Sales Tax Compliance Providers

By TaxConnex on Tue, Jun 02, 2020 @ 11:00 AM

In this current climate, your focus is understandably on your personal health and the health of your business. The last thing you want to monitor is how states are adjusting their sales tax filing dates and deferments. Even as states and economies begin opening up, there's no telling when we'll be back to normal, or what the new normal will be.

Topics: sales tax compliance sales tax filing
4 min read

To Defer or Not to Defer?

By TaxConnex on Thu, May 28, 2020 @ 07:00 AM

Some states have postponed sales-tax filing and payment deadlines well into the weeks ahead, part of a COVID-19 relief effort for battered businesses. States and even localities have differed in how they are handling the deferments. Some deferments relate to filing and payment, some just payment, and some states are granting deferments only when requested.  

Topics: sales tax compliance sales tax news
3 min read

Telecom Faces Special Challenges with Taxes and Fees

By TaxConnex on Tue, May 26, 2020 @ 11:00 AM

If you’re a telecommunications services company, you face greater trials than other businesses when complying with federal, state and local jurisdictions.  In addition to state and local taxes, your business may also be subject to various federal and state regulatory obligations.

Topics: sales tax compliance telecom tax
2 min read

Deadlines, Deadlines, Deadlines...Understanding the Nuances to Maintaining Your Sales Tax Calendar

By TaxConnex on Thu, May 21, 2020 @ 11:00 AM

In talking with friends and family about what we do at TaxConnex in terms of preparing and filing sales tax returns – especially this time of the year – they often say, “Oh you must be crazy busy right now”.  I sometimes laugh, but often I sigh stating that income tax season is generally a once a year deal (this year pushed out at least an extra three months) and sales tax is EVERY month.

Topics: sales tax compliance sales tax
3 min read

Top Tips for Managing a Sales Tax Audit

By TaxConnex on Tue, May 19, 2020 @ 11:00 AM

Topics: sales tax compliance sales tax sales tax audits
3 min read

States Getting Tougher on Marketplace Facilitators - What Does This Mean for You?

By TaxConnex on Thu, May 14, 2020 @ 11:00 AM

What is a marketplace facilitator?

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

Sales Tax Compliance - There Is No EASY Button

By TaxConnex on Tue, May 12, 2020 @ 11:00 AM

Sales tax automation has come a long way since the Quill vs. North Dakota case in 1992. Now, even the smallest multi-state businesses and startups have access to sales tax automation options that lower costs and ease the burden of compliance. With the evolving rules and regulations across states and jurisdictions for sales tax in the U.S., it makes sense to automate where you can.

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

Your Top Questions on VDAs Answered

By TaxConnex on Thu, May 07, 2020 @ 11:00 AM

All states that impose sales tax have a VDA program, or Voluntary Disclosure Agreement, to help alleviate the penalties of non-compliance and encourage businesses to comply. A VDA can be a very attractive option for businesses who have many years of non-compliance or that have collected sales tax previously but failed to remit.  But what exactly is a VDA? Why is it beneficial? Keep reading for answers to our most frequently asked questions on VDAs.

Topics: sales tax compliance VDA
3 min read

For States, The Tax Hits Just Keep On Coming - What Does That Mean For Your Business?

By TaxConnex on Mon, May 04, 2020 @ 08:26 AM

As a few states tiptoe into re-opening during the COVID-19 pandemic, more states have joined previous warnings that the loss of sales taxes is going to hit soon – and hard.

Topics: sales tax sales tax news
3 min read

Taxability of Digital Products and Services

By TaxConnex on Thu, Apr 30, 2020 @ 11:00 AM

The internet can be a great way to sell your products. For tangible products it’s easy - the order comes in, you process the payment (including sales tax, which you collect and remit to the state) and ship out the package. But what if what you’re selling isn’t a physical product that you ship?

Topics: sales tax compliance taxability
5 min read

Understanding Sales Tax Nexus

By TaxConnex on Tue, Apr 28, 2020 @ 11:00 AM

Many companies are not aware that tax regulations in each state may obligate them to collect and pay sales & use tax even when they do not have a physical presence there. Determining sales tax nexus is a tricky proposition, and there are many moving parts to monitor. In this article, TaxConnex shares how sales tax nexus is determined and offers suggestions to help companies meet their obligations under the law.

Topics: sales tax nexus sales tax compliance sales tax
3 min read

Determining Who is At Risk for Responsible Party Laws within Your Company

By TaxConnex on Thu, Apr 23, 2020 @ 11:00 AM

If your company sells into multiple states and has established sales tax nexus, it is critical that you evaluate your business’s exposure to sales-and-use-tax liability as soon as possible. There are more than 10,000 taxing jurisdictions and many have their own unique set of rules and interpretations. Not taxing a product or service appropriately could lead to significant exposure over time. And, you may be the person on the line to pay the penalties and interest, not your business.

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

Alaska Jurisdictions Combine to Establish States' First Nexus

By TaxConnex on Tue, Apr 21, 2020 @ 11:00 AM

Sales into the state of Alaska have always been exempt from state level sales tax; however, many of the local jurisdictions in Alaska have enforced sales tax collection at the local level provided a business has a physical presence.  Now, with Wayfair, even remote sellers need to worry about collecting the local sales tax in Alaska.

Topics: sales tax sales tax news sales tax filing
3 min read

Your COVID-19 Questions: Answered

By TaxConnex on Thu, Apr 16, 2020 @ 11:00 AM

The constantly changing nature of COVID-19 has left people with a lot of uncertainty. Sales tax isn’t an exception to that uncertainty as over 20 states have announced changes to their sales tax deadlines or policies in order to help businesses as they navigate life during the pandemic. If you’re like many businesses, you have sales tax nexus in multiple states. Keeping up with all their different regulations was difficult enough before COVID-19, and now it’s more complicated than ever.

Topics: sales tax Now it's all on us sales tax filing
3 min read

Responsible Party Laws by State

By TaxConnex on Tue, Apr 14, 2020 @ 11:00 AM

Since the 2018 Wayfair decision, many more businesses are now required to collect and remit sales tax, and they are not prepared.  What these businesses don’t realize is that due to responsible party laws, a business itself is not the only one at risk.  CEOs, CFOs, Directors and other individuals that have influence over a business’s tax and accounting processes can be held personally responsible for any sales tax shortfalls according to personal responsibility laws.

Topics: sales tax compliance sales tax
3 min read

States, Like Businesses, Prepare for a Decline in Revenue

By TaxConnex on Thu, Apr 09, 2020 @ 11:00 AM

Many businesses that were forced to shut down by governments trying to deal with COVID-19 are the very businesses governments rely on for sales tax obligations. And because of this, many state and local taxing jurisdictions are seeing the first signs of revenue shortfalls.  Here’s what we are seeing:  

Topics: sales tax compliance sales tax sales tax news
3 min read

How to Establish a Sales Tax Compliance Process

By TaxConnex on Tue, Apr 07, 2020 @ 11:00 AM

You’ve established you have nexus in multiple states, and understand the taxability of your products and services, now what?

Topics: sales tax nexus sales tax compliance sales tax
5 min read

Despite Deadline Delays, Sales Tax Will Still Be Due

By TaxConnex on Thu, Apr 02, 2020 @ 11:00 AM

As businesses adjust to the new norm of working remotely and managing cash more closely than ever, several states are postponing deadlines for filing and paying sales and use taxes, often waiving penalties and interest. In just a few examples, many states are offering 30-day extensions to file and pay, California is offering extensions of up to three months, and Maryland and Massachusetts have pushed their sales and use tax deadlines to June. (see other tax updates here.) 

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

Estimating Your Sales Tax Exposure

By TaxConnex on Tue, Mar 31, 2020 @ 11:00 AM

You’ve determined nexus to exist for your business and understand that your products or services are taxable, but you’ve yet to comply to sales & use tax rules. What’s next?

Sales and use taxes collected on behalf of the government are considered government funds upon collection. Failure to remit taxes collected to the appropriate jurisdiction is considered a criminal offense – the parties thereto connected (including corporate officers) or contributing to the offense could face fines in excess of 50% of the tax amount…and prison.

Topics: sales tax compliance sales tax
1 min read

Top 10 Tips for Tax Compliance in Telecom and VoIP Providers

By TaxConnex on Thu, Mar 26, 2020 @ 11:00 AM

There are many misconceptions when it comes to telecommunication and VoIP taxes. However, if we had to narrow it down to the two most fundamental misconceptions that impact everything else, it would be: 

Topics: sales tax compliance telecom tax
6 min read

2020 Sales Tax Developments

By TaxConnex on Thu, Mar 19, 2020 @ 11:00 AM

Three months in and it’s already been a hectic year on many frontssales and use taxes have been no exception. Developments in 2020 so far include: 

Topics: sales tax compliance sales tax news
2 min read

How to Correct Previous Non-Compliance with Sales & Use Tax

By TaxConnex on Tue, Mar 17, 2020 @ 11:00 AM

Maybe you’ve just figured out that you have nexus and were non-compliant without realizing it, or maybe you’ve been rolling the dice and crossing your fingers you won’t get audited – no matter your situation, if you have established nexus, are selling a taxable product or service into multiple states and aren’t complying with sales and use tax laws -  you have the potential to owe quite a bit in penalties and interest if caught. 

Topics: sales tax compliance sales tax audits VDA
6 min read

TaxConnex Statement to Community on COVID-19

By Robert Dumas on Fri, Mar 13, 2020 @ 10:52 AM

In response to the uncertainty around COVID-19, I felt it was important to share our response to this rapidly developing situation.  Along with the safety of our employees, our top priority is maintaining a high-quality, uninterrupted service to support your business.  Your sales tax compliance continues to be our responsibility.  As we’ve always said, your sales tax compliance is all on us. 

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

Congress Hears Your Problems with Wayfair

By TaxConnex on Thu, Mar 12, 2020 @ 11:00 AM

If your business has been struggling to comply with new sales and use tax laws, Congress is listening.

Topics: sales tax compliance south dakota vs. wayfair
5 min read

5 Steps to Avoid Sales Tax Risk with M&A

By TaxConnex on Thu, Mar 05, 2020 @ 11:14 AM

As part of the financial terms of any potential transaction, you’re likely looking at the ratio of current assets to current liabilities, revenue and net income growth, operating cash flow, market opportunity, etc.  But what about sales tax? 

Topics: sales tax nexus sales tax compliance taxability
2 min read

TaxConnex™ Partners with Service 2 Software

By Robert Dumas on Wed, Mar 04, 2020 @ 11:15 AM

I am excited to announce that we’ve partnered with Service 2 Software, a registered 501c(s) organization that exists to equip service members with the necessary skills to gain employment in the technology industry.  This partnership gives us a great opportunity to support our veterans while also providing skilled talent to our growing team. 

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

Responding to a Sales Tax Audit

By Robert Dumas on Thu, Feb 27, 2020 @ 11:00 AM

It happened.  You received a sales tax audit notice from a jurisdiction.  What do you do?

Topics: sales tax compliance sales tax sales tax audits sales tax filing
3 min read

The Role of Technology in Your Sales Tax Compliance Process

By TaxConnex on Tue, Feb 25, 2020 @ 11:25 AM

Technology has radically changed the way consumers buy goods and services.  And while we can easily identify how digital disrupters, like Amazon, Netflix and Facebook have changed our purchasing behavior, a lessor known change is the way they’ve impacted sales tax.  In fact, it’s spurred the largest development in sales tax in over 50 years with the Wayfair case. While the physical presence tests still apply, the Wayfair case dramatically expands the number of businesses subject to sales and use tax obligations.

Topics: sales tax compliance sales tax calculation sales tax filing
3 min read

4 Tips to Avoid a Sales Tax Audit

By Robert Dumas on Thu, Feb 20, 2020 @ 11:00 AM

It’s been over a year since economic nexus was put into effect, and state and local jurisdictions have started knocking on doors to start collecting. Whether you are intentionally or unintentionally neglecting your sales tax obligations, the chance of audit is continuing to grow.

Topics: sales tax audits Now it's all on us
3 min read

The Costs of Non-Compliance

By Robert Dumas on Thu, Feb 13, 2020 @ 11:00 AM

Businesses that sell into various states now have to contend with the sales & use tax regulations and requirements of thousands of jurisdictions nationwide. One big question for these businesses is how much time, effort and money do they need to devote to compliance – and do they need to pay attention to it at all?

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

WEIGHING YOUR OPTIONS – HOW TO MANAGE SALES TAX COMPLIANCE

By TaxConnex on Thu, Feb 06, 2020 @ 12:08 PM

In light of recent legislation changes, you’ve determined you meet sales tax nexus thresholds outside of just your home state and now you have to collect, file, and remit sales tax in multiple states. What a headache. To make matters worse, this is a compliance issue, so you must act.

Topics: sales tax compliance sales tax filing
3 min read

Drop Shipments - Who holds the sales & use tax responsibility?

By TaxConnex on Thu, Jan 30, 2020 @ 11:00 AM

Drop shipments are more prevalent in today’s marketplace than most realize –many purchases made online today are commonly drop-shipped to consumers, transactions that typically involve multiple states and parties. Navigating the application of sales and use taxes and related exemptions in a drop shipment scenario is tricky for both the retailer and the drop-shipper. 

Topics: sales tax nexus sales tax retail
2 min read

Determining Sales Tax Nexus for your Technology Company

By TaxConnex on Tue, Jan 28, 2020 @ 11:15 AM

Technology companies frequently engage in sales tax nexus creating activities without realizing it.  Many different activities can create “nexus”, the link that establishes the need for a seller to adhere to the jurisdiction’s sales tax rules.  And with the introduction of economic nexus in 2018, it has become even more confusing.

Topics: sales tax nexus sales tax sales tax calculation
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