Jeff Meigs

Jeff Meigs


Recent posts by Jeff Meigs

2 min read

EYE ON Nebraska Sales Taxes

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

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

Topics: sales tax sales tax news
1 min read

EYE ON Montana Sales Taxes

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

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

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

Topics: sales tax
2 min read

EYE ON Missouri Sales Taxes

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

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

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

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

Topics: sales tax sales tax news
3 min read

EYE ON Minnesota Sales Taxes

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

 

Topics: sales tax sales tax news
2 min read

EYE ON Michigan Sales Taxes

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

 

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

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

EYE ON Massachusetts Sales Taxes

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

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

Topics: sales tax sales tax news
1 min read

EYE ON Maryland Sales Taxes

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

 

Topics: sales tax sales tax news
1 min read

EYE ON Maine Sales Taxes

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

Topics: sales tax sales tax news
1 min read

EYE ON Louisiana Sales Taxes

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

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

Topics: sales tax sales tax news
1 min read

EYE ON Kentucky Sales Taxes

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

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

Topics: sales tax sales tax news
2 min read

EYE ON Kansas Sales Taxes

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

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

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

Topics: sales tax sales tax news
1 min read

EYE ON Iowa Sales Taxes

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

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

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

Topics: sales tax sales tax news
1 min read

EYE ON Indiana Sales Taxes

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


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

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

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

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

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Topics: sales tax sales tax news
3 min read

I Owe More Sales Tax? The Reality of Double Taxation

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

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

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

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

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

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

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

EYE ON Illinois Sales Taxes

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

 

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

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

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

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

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

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

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

Leases and Rentals

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

Chicago

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

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

EYE ON Idaho Sales Taxes

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

 

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

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

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

Topics: sales tax sales tax news