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
Read More 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
Read More 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
Read More 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
Read More 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.
Read More 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
Read More 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
Read More 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
Read More 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
Read More 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
Read More November 27, 2015 5 min read
South Carolina reminds shoppers that Amazon orders will lose their sales tax free status as of Jan. 1, 2016. As of New Year’s Day, South Carolina will become the 27th state to require sales tax be collected on Amazon orders. Amazon has long been aware that it will lose its sales tax
Read More November 27, 2015 5 min read
Conditional legislation holds the fate of the Washington state sales tax. Washington voters recently approved an unusual ballot initiative which effectively holds the state sales tax hostage unless legislators propose a separate constitutional amendment related to future tax increases.
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