March 23, 2015 5 min read
transient accommodations tax transient accommodations tax Another state has been thwarted in its efforts to extend sales taxes to online travel companies (OTCs). On March 17, Hawaii’s Supreme Court awarded OTCs a partial victory, unanimously holding Travelocity and other OTCs were not liable for Hawaii’s transient accommodations tax (TAT), although
Read More March 18, 2015 5 min read
taxes on prepared meals taxes on prepared meals Sales taxes are not always uniformly applied to all goods. Some states impose a “meals tax”, which is a type of additional sales tax applied only to prepared foods served in restaurants and similar establishments. According to a 2012 survey by the
Read More March 05, 2015 6 min read
Colorado’s Internet tax law Colorado’s Internet tax law On March 3rd, the U.S. Supreme Court dealt a potentially crippling blow to Colorado’s efforts to force out-of-state retailers to assist the state’s efforts to collect use taxes on Internet and mail order purchases. While the court unanimously sided with retailers opposing
Read More February 27, 2015 5 min read
substantial nexus substantial nexus Generally a state may only collect sales or use taxes if there is a “substantial nexus” between the seller and the state imposing the tax. The substantial nexus requirement arises from the United States Constitution, which gives Congress the exclusive right to regulate interstate commerce. As
Read More February 20, 2015 5 min read
local option sales tax local option sales tax Forty-six states currently impose a statewide sales tax of some kind. In most of these states the rate is not uniform throughout but varies among cities and counties. This is because 37 states allow for a “local option sales tax,” a process
Read More February 12, 2015 5 min read
Michigan sales tax increase Michigan sales tax increase Michigan voters will head to the polls on May 5 to approve (or reject) a proposed 1% increase in the statewide sales tax. Last December, Michigan Gov. Rick Snyder and the state’s legislature agreed to the referendum as part of a package
Read More February 10, 2015 5 min read
taxable event taxable event Last October, a Louisiana appeals court ruled a portable toilet rental company owed the City of East Baton Rogue back sales taxes on fees charged for cleaning and servicing its units (see “Louisiana appeals court battles over taxability of servicing of portable toilets“.) Although “services” are normally
Read More January 29, 2015 5 min read
confusion over variable sales tax rates confusion over variable sales tax rates Sales tax rates are generally not consistent throughout a given state. Most states allow county or other municipalities to add their own sales tax on top of the statewide rate. This often leads to confusion variable sales tax
Read More January 27, 2015 5 min read
board of equalization board of equalization In California, all sales and use taxes are administered at the state level by an agency known as the Board of Equalization. Counties and cities may impose their own sales and use taxes, but the board handles all collection and distribution. The sales tax
Read More January 21, 2015 5 min read
Missiouri constructions sales tax exemptions Missiouri constructions sales tax exemptions Missouri’s highest court recently issued three decisions regarding the application of sales and use taxes to materials used in construction. Fred Weber, Inc. v. Director of Revenue In the first case, Fred Weber, Inc. v. Director of Revenue, a manufacturer
Read More January 13, 2015 5 min read
sales tax record keeping sales tax record keeping All businesses responsible for collecting sales tax must keep proper records. Tax authorities will not accept incomplete or inaccurate accounts. And judges will not listen to excuses. These things are usually taken as a given, but sometimes we see a reminder of just
Read More December 30, 2014 5 min read
sales tax exempt sales tax exempt Savvy businesses often look for loopholes they can exploit to (legally) avoid paying sales taxes. But state revenue departments and courts tend to frown on creative interpretations of the law. A group of telecommunications companies in Michigan recently learned this lesson. Like many states,
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