July 22, 2015 5 min read
commerce clause commerce clause The war between cable and satellite television providers recently had a battle on the sales tax front. On June 11, a Florida appeals court held the state’s sales tax regime – which imposes a higher rate on satellite providers – violated the United States Constitution’s Commerce
Read More July 15, 2015 5 min read
tax audit tax audit The Connecticut Supreme Court recently decided an unusual sales tax case. The allegedly delinquent taxpayer was actually a town that challenged the state’s decision to collect sales tax on fees charged for municipal waste removal services. Connecticut imposes a 6.35% sales tax on the “rendering of
Read More June 25, 2015 5 min read
Is a pixel real? Are downloads taxable? Digital goods redefine tangible personal property standards. Historically, most states impose sales or use taxes on “tangible personal property.” In the broadest sense, this includes anything a person may own that is not real property (i.e., land). But the rise of Internet-based commerce has complicated matters. Is
Read More June 22, 2015 5 min read
The Marketplace Fairness Act is dead, long live the Remote Transactions Parity Act? On June 15th House Oversight Chairman Jason Chaffetz (R-Utah) introduced a new Internet sales tax bill he’s calling the Remote Transactions Parity Act (RTPA). The bill is similar to the Marketplace Fairness Act which died in the House
Read More June 17, 2015 5 min read
Voters in dozens of Utah cities and counties may soon decide whether to add another quarter percent to their local sales tax. In March, Utah Gov. Gary Herbert signed into law House Bill 362, a broad package of measures designed to fund transportation projects throughout the state. The bill converts Utah’s statewide gasoline tax from a per-gallon levy to a 12% sales tax. Read More June 08, 2015 5 min read
“Tampon tax” on feminine hygiene necessities called unfair. Starting July 1, Canada will exempt products “marketed exclusively for feminine hygiene purposes” from the federal government’s 5% goods and services tax (GST).
Read More May 28, 2015 6 min read
Whether or not you should charge sales tax on shipping charges depends on several factors.
Read More May 27, 2015 6 min read
Illinois litigation examines tax on shipping questions When purchasing goods online from an out-of-state retailer, you may be liable for sales tax not just on the cost of the items, but also any shipping and handling fees. The courts in many states have struggled with when to tax such costs.
Read More May 15, 2015 5 min read
Is sales tax due on casual sales? Not every sale is subject to sales or use tax. If it were, then anyone holding a garage sale would be liable for collecting and remitting sales tax. That is why states typically exempt “casual” sales from taxation – that is, private sales
Read More May 12, 2015 5 min read
Sales tax relief is on the agenda for the state’s legislature with two bills presently under consideration. The first would lower the general sales tax rate for the first time in the state’s history, while the other would provide a unique tax “holiday” for hunters and gun enthusiasts.
Read More April 23, 2015 5 min read
income tax deduction for state sales taxes income tax deduction for state sales taxes On April 16, the U.S. House of Representatives passed H.R. 622, a bill designed to make the federal income tax deduction for state sales taxes permanent. If you itemize deductions on your annual Form 1040, you
Read More April 10, 2015 5 min read
tax base on a purchase tax base on a purchase Coupons, rebates, credits, deductions, discounts, trade-ins and payment terms may – or may not – change the tax base on a purchase A customer pays sales tax on the purchase price of an item. But what if the price is reduced thanks
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