Are Pumpkins Tax Exempt in the Fall?

September 20, 2017 5 min read

pumpkins In three states, Pumpkins Are Exempt from Sales Tax…Unless They’re For Carving. Sometimes, sales tax laws just don’t seem to make sense. Like, who in Indiana thought it was so important to make a distinction between marshmallows and marshmallow creme?  Well, in Indiana, you’ll have to pay sales tax
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Virtual Currency: Subject to Sales Tax or Not?

February 21, 2017 5 min read

Subject to Sales Tax or Not What is virtual currency? Is it subject to income tax? Is it subject to sales tax? Is it currency? What is it? We started talking about Bitcoin a few years ago (first launched in 2009) and how techies were getting rich with it. My
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Services – The New Sales Tax Target

January 31, 2017 5 min read

services The new year comes with new attempts to expand the sales tax base. Services are on the dart board! Cities, counties, and states need funds to maintain and enhance their infrastructures and provide much needed services to their citizens. One area that has been a hotbed over the past years is
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Nexus in Today’s Technology Marketplace

December 20, 2016 5 min read

Nexus Nexus Since 1992 and the Quill Corp. v. North Dakota [504 U.S. 298 (1992)] (“Quill”) ruling establishing physical presence in a state before a seller is required to collect sales or use tax, technology has redefined the marketplace. Remote sellers have enjoyed not charging tax on sales in states where they did not
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Rules For Taxing the Cloud Are Cloudy

November 17, 2016 7 min read

Taxing Cloud Taxing Cloud Cloud computing is causing confusion to tax departments, small and large. Are cloud transactions subject to sales and use tax? Subject to income tax? How do you describe the cloud and what does it offer to companies? What is the cloud really? Before you can begin to answer
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Minimize Your Risk of a Sales Tax Audit

October 17, 2016 5 min read

Sales Tax Audit Sales Tax Audit States and cities are increasing sales tax audits as a source to help fund budget shortfalls. Transactional tax bases are expanding and more items and services are becoming taxable.  Eventually, you will come under audit at some point in your business cycle. Audits may cover
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Sales tax change frequency by state

January 14, 2016 5 min read

Zip2Tax compares the sales tax change frequency of the states. Ever wonder how your state measures up? It’s generally accepted that there are around 11,000 sales tax jurisdictions across this great and diverse country of ours.
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Incorrect sales tax charge leads to seemingly avaricious lawsuit

January 12, 2016 5 min read

$3.10 in incorrect sales tax leads to $158k in attorney’s fees Retailers need to be careful when implementing any automated system for calculating sales tax. Even minor errors can lead to a lawsuit if a customer is charged the incorrect sales tax amount. Indeed, there are a number of class
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Federal income tax deduction for state sales and use taxes reinstated

December 29, 2015 5 min read

Your federal tax deduction for state sales and use taxes could be larger than your income tax deduction depending upon your circumstances On December 18, President Obama signed a massive federal spending bill into law. Among other things, the law reinstates a federal income tax deduction for state sales and use
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Tennessee rules for sales tax on vacation rentals

December 22, 2015 5 min read

While budgeting for travel, plan on paying sales tax on vacation rentals through companies like Airbnb Many people have turned to their spare bedrooms as source of additional income but sales tax on vacation rentals is a new fly in the ointment that renters in several states may have to
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Proposed Canadian PST increase reversed

December 17, 2015 5 min read

Many state and local governments have turned to sales tax increases in order to address growing budget deficits. But the newly installed government of one Canadian province has decided to change course and cancel a planned provincial sales tax increase that was scheduled to take effect in
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Are services subject to sales tax?

November 30, 2015 5 min read

A state by state comparison of services subject to sales tax While it is politically unpopular to raise sales tax rates, many states have found it possible to supplement lagging revenues by expanding the tax base – they make more types of goods and services subject to sales tax. Whereas services used to be considered mostly
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