August 24, 2015 5 min read
Most states collect no sales tax on groceries, meaning food purchased for home preparation and consumption is usually tax exempt. According to the Federation of Tax Administrators, six states currently tax groceries at a lower rate than the general state sales tax. Seven other states charge their full rate of sales
Read More August 24, 2015 5 min read
In November 2013, voters in the city of Modesto, California, defeated a proposed 1% increase in the local sales tax by just 507 votes. Undeterred by this narrow defeat, Modesto’s mayor and city council will again ask voters to approve a local sales tax increase on this November’s ballot, albeit only 0.5% this time.
Read More August 24, 2015 5 min read
tax refund repayment tax refund repayment The only thing worse than owing sales tax is having to repay the same sales tax a second time. Several Minnesota electric cooperatives faced this scenario recently when the state’s Commissioner of Revenue said it “erroneously” provided a sales tax refund on taxes paid on
Read More July 31, 2015 5 min read
Illinois sales tax Illinois sales tax Illinois Gov. Bruce Rauner won election last year on a platform of reducing the tax and regulatory burden on business. Yet he has also proposed what would be the nation’s only sales tax on business advertising. In an effort to “modernize” the Illinois sales tax
Read More 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 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.
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