Sales Tax News - December 26, 2017

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

Topics: sales tax news

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

Officials in Clayton County, Georgia are anxiously awaiting an appeal with the 11th circuit court to attempt to save approximately $20 million in jet fuel sales tax - $9 million of which is designated for school capital projects in the community.  A current interpretation of a federal law mandates that the jet fuel sales tax at Hartsfield-Jackson airport, the busiest airport in the world, be reinvested into airport capital and operating costs.  The FAA instituted this law to fight against 'hidden taxes' that would raise prices for consumers and take advantage of federal grant money.  The law was set to take effect this month, but Clayton County officials are hoping for an appeal by March 2018.

 

Vermont Works to Bridge a $30 Million Sales Tax Gap

Officials estimate that Vermont loses $30 million in tax revenue to online purchases from retailers who don't charge Vermont's 6% sales tax and to resident purchases from nearby tax-free New Hampshire.  In an effort to recoup these losses, the Vermont Tax Department has created a table that allows residents to estimate additional taxes owed based on income and pay that amount when filing taxes at the end of the year.  In past years, the table has assumed unpaid sales tax to amount to 0.2% of a household income.  However, low community compliance has encouraged officials to decrease the sales tax assumption to 0.1% of a household income.  Officials hope residents will see this number as more realistic and become more diligent in paying their sales tax balances.

 

New York's Status as a Fine Arts Hub Complicates Sales Tax

Last month at an auction at Christie's a painting was sold for $450 million dollars, and because the buyer was a Saudi prince, New York will likely forgo the $39 million dollar sales tax on it.  New York laws tend to favor out of town fine arts buyers.  Experts say this is an effort to solidify the state's reputation as a global art center.  However, the laws are complicated and taxes can still be calculated on certain shipping methods to get art out of the country.

Brian Greer

Written by Brian Greer