Wednesday, May 16, 2012

Alabama Governor Bob Riley recently signed House Bill 307 into law, creating a new sales tax exemption for diabetic supplies purchased with a prescription in the state. 2012 Ala. Acts 309. Beginning August 1, 2012, items used in the treatment of diabetes...

Friday, May 11, 2012

The Wisconsin Department of Revenue recently published a tax bulletin discussing the tax treatment of contact lenses, eyeglasses, and their accessories. Wis. Tax Bull. No. 175 (Dept. of Revenue Apr. 2012). Wisconsin exempts sales of prosthetic devices,...

Thursday, May 10, 2012

By enacting House Bill No. 4658, Michigan has eliminated its sales tax exemption for tangible personal property purchased by inmates in a penal or correctional institution. 2012 Mich. Acts No. 126. Previously, inmates were able to purchase items free from...

Thursday, May 10, 2012

The Missouri Department of Revenue recently issued a letter ruling discussing the taxability of research and development (R&D) equipment in the state. Mo. Ltr. Rul. No. LR 7079 (Dept. of Revenue Apr. 13, 2012). The Applicant works in the dairy industry...

Monday, May 07, 2012

The Administrative Law Division of the Alabama Department of Revenue recently ruled that sales of glucose strips in the state are subject to tax. DEGC Enterprises, Inc. v. State, Dept. of Revenue, Dkt. No. S. 10-1011 (Dept. of Revenue, Admin. Law Div. Mar....

Thursday, May 03, 2012

On the recommendation of the Tornado Recovery Action Council, the Alabama Legislature recently enacted legislation (2012 Ala. Acts 256) allowing for residents to purchase items related to severe weather preparedness exempt from tax the first full weekend...

Monday, April 30, 2012

Texas Governor Rick Perry recently declared three counties--Dallas, Tarrant and Kaufman--disaster areas following severe storms and tornadoes. Tex. Tax Policy News (Comptroller of Pub. Accounts Apr. 2012). As a result of this declaration, separately stated...

Friday, April 27, 2012

The Indiana Department of Revenue recently issued an Information Bulletin discussing the taxability of items purchased by professional motor racing teams and owners of two-seater Indianapolis 500-style race cars. Ind. Sales Tax Info. Bull. No. 67 (Dept. of...

Thursday, April 26, 2012

The New York Department of Taxation and Finance (DTF) recently issued an advisory opinion addressing the taxability of services provided by gun dealers in the state. N.Y. Advisory Op. of the Commr. of Taxn. and Fin. TSB-A-12(8)S (Apr. 13, 2012). The...

Wednesday, April 25, 2012

The Wisconsin Department of Revenue (DOR) recently published a fact sheet explaining the new sales tax exemption for tangible personal property used in "qualified research." Wisc. Fact Sheet: Sales and Use Tax Exemption for Qualified Research (Dept. of...

Tuesday, April 24, 2012

The Kentucky Board of Tax Appeals (BOTA) recently issued an order explaining the application of Kentucky's sales tax exemptions for items used in manufacturing. Progress Metal Reclamation Co. v. Cmmw., Fin. and Admin Cabinet, Or. No. K-22015 (Ky. Bd. of...

Tuesday, April 24, 2012

The Indiana Department of Revenue has updated an Information Bulletin to clarify the tax treatment of purchases made by non-profit organizations in the state. Ind. Sales Tax Info. Bull. No. 10 (Dept. of Revenue Apr. 2012). Generally, taxable items...

Monday, April 23, 2012

In a recent notice, the California State Board of Equalization (BOE) explained changes to the requirements for obtaining a seller's permit for those who make sales at temporary locations. Cal. Spec. Notice L-306 (St. Bd. of Equalization Apr. 2012). Sellers...

Friday, April 20, 2012

Governor Steve Beshear signed legislation that provides for sales tax relief for owners of buildings that were damaged or destroyed by the severe storms and tornadoes that ripped through Kentucky earlier this year. See Ky. Dept. of Revenue Important Info.:...

Thursday, April 19, 2012

The Colorado Department of Revenue recently revised its guidance on the taxability of computer software sold in the state. Colo. Tax FYI Publication: Sales 89 (Dept. of Revenue Mar. 2012) (available here). As of July 1, 2012, computer software will be...

Wednesday, April 18, 2012

The Pennsylvania Department of Revenue DOR) has published a bulletin explaining sales tax rules for mining site preparation. Pa. Sales and Use Tax Bull. No. 2012-01 (Dept. of Revenue Apr. 16, 2012). Specifically, the bulletin discusses the taxability of...

Tuesday, April 17, 2012

The Washington Department of Revenue recently published guidance regarding the tax treatment of dark fiber used in providing telecommunication services in the state. Wash. Excise Tax Advisory ETA 3171.2012 (Dept. of Revenue Apr. 4, 2012). "Dark fiber"...

Monday, April 16, 2012

The Louisiana Department of Revenue has issued a bulletin reminding taxpayers of the upcoming sales tax holiday for hurricane-preparedness items. La. Revenue Info. Bull. No. 12-019 (Dept. of Revenue Apr. 13, 2012). During this annual sales tax holiday,...

Friday, April 13, 2012

Technology is evolving faster than sales tax laws. This creates potential for uncertainty in many areas, including whether charges paid to stream video programming over the Internet are subject to tax. States that specifically address whether video...

Friday, April 13, 2012

The Texas Comptroller is reminding all taxpayers that purchases of qualifying Energy Star products will be exempt from tax beginning at 12:01 a.m. on Saturday, May 26, 2012 and ending at 11:59 p.m. on Monday, May 28, 2012. Sales Tax: Energy Star Sales Tax...

Thursday, April 12, 2012

On March 28, Florida Governor Rick Scott signed into law "economic development" legislation that affects several tax programs. 2012 Fla. Laws ch. 32. In addition to establishing a "Back to School" sales tax holiday (reported on here), the act, known as...

Wednesday, April 11, 2012

Nebraska recently enacted new legislation providing an exemption for the sale, lease, or rental of biochips. 2012 Neb. Laws LB 830. The bill passed the Nebraska Legislature on April 5th, and Governor Dave Heineman subsequently approved it on April 10,...

Tuesday, April 10, 2012

Arizona Governor Jan Brewer recently signed House Bill (HB 2094) into law creating a new prepaid wireless 911 excise tax. Ariz. Sess. Laws ch. 198 (2012). The act, which takes effect on or after December 31, 2013, imposes an excise tax amounting to...

Monday, April 09, 2012

Florida has enacted House Bill 7087 (HB 7087), a combination of tax changes that is labeled "economic development" legislation. 2012 Fla. Laws ch. 32. In addition to wide range of amendments to several tax programs, this act creates a "Back to School"...

Friday, April 06, 2012

West Virginia recently enacted legislation repealing its Telecommunications Tax. See the governor's announcement here. See the enrolled bill (House Bill 4088) here. West Virginia's Telecommunications Tax applied to businesses engaged in furnishing...

Friday, April 06, 2012

The Wisconsin Department of Revenue (DOR) recently issued guidance explaining the taxability of items commonly found in home beer brewing kits. Wisc. News for Tax Practitioners: Home Beer Brewing Ingredients, Equipment, and Supplies (Dept. of Revenue Mar....

Thursday, April 05, 2012

The South Carolina Department of Revenue (DOR) recently issued a private letter ruling explaining that broadcast software sold to radio, television, and cable television stations is exempt from sales tax. S.C. Priv. Ltr. Rul. No. 12-1 (Dept. of Revenue...

Tuesday, April 03, 2012

Utah recently enacted a sales tax exemption for purchases related to the construction and operation of life and science research development facilities. 2012 Utah House Bill 365. The new law goes into effect July 1, 2012, and amends Utah Code Ann. sec....

Monday, April 02, 2012

Shon Holyfield, CEO of TTR, Inc., will be speaking this year at the TeleStrategies Conference covering Refunds and Audits - New State Developments and Emerging Technologies. Mr. Holyfield says, "States are aggressively pushing back on...

Monday, April 02, 2012

The Wisconsin Department of Revenue recently issued guidance regarding the taxability of vegetable oil and animal fat converted to motor fuel (Wisconsin News for Tax Practitioners: Sales and Use Tax Exemption for Vegetable Oil or Animal Fat Converted to...

Friday, March 30, 2012

The New York Department of Taxation and Finance recently clarified the tax treatment of dermal fillers and botulinum toxin in the state (N.Y. Technical Service Bureau Memorandum No. TSB-M-12(5)S (Mar. 26. 2012)). Botulinum toxin, dermal fillers and other...

Thursday, March 29, 2012

The Missouri Department of Revenue recently issued a private letter ruling discussing the taxability of items sold to a common carrier (Mo. Ltr. Rul. No. LR 7068 (Dept. of Revenue Mar. 15, 2012)). The applicant, a registered vendor in Missouri, sells...

Wednesday, March 28, 2012

The West Virginia legislature recently enacted legislation allowing construction contractors to take advantage of sales tax exemptions for nonprofit youth organizations when the contractors perform work for such organizations (West Virginia Senate Bill...

Wednesday, March 28, 2012

The South Carolina Department of Revenue recently issued a revenue ruling discussing the taxability of electronically delivered software. S.C. Revenue Rul. No 12-1 (Dept. of Revenue Mar. 20, 2012). In the facts presented, a software company representative...

Tuesday, March 27, 2012

Effective April 1, 2012, clothing, footwear, and items used to make or repair exempt clothing sold for less than $110 per item of clothing (or per pair of footwear) will be exempt from New York's state sales tax. Prior to April 1, New York exempted...

Monday, March 26, 2012

The Kansas Department of Revenue recently issued a private letter ruling explaining that soil excavation and disposal services are generally not subject to Kansas sales tax. Kan. Priv. Ltr. Rul. No. P-2011-011 (Dept. of Revenue Feb. 22, 2012). The...

Thursday, March 22, 2012

The Missouri Department of Revenue has issued a news release describing the state's upcoming "Show-Me Green" sales tax holiday. Mo. and Out-of-State Consumers Can Save on Energy-Efficient Appliances, Mo. Dept. of Revenue News Release (Mar. 16, 2012)....

Wednesday, March 21, 2012

The New York State Department of Taxation and Finance recently issued an advisory opinion discussing the taxability of heart devices and associated equipment and services. N.Y. Advisory Op. of the Commr. of Taxn. and Fin. TSB-A-12(5)S (Mar. 6,...

Tuesday, March 20, 2012

Responding to a 2011 decision from the Division of Tax Appeals, the New York State Department of Taxation and Finance (DTF) issued a technical memorandum explaining that the Department has changed its policy on the taxability of bungalow rentals. N.Y....

Monday, March 19, 2012

The Missouri Department of Revenue (DOR) recently released a letter ruling explaining that electronically downloaded data in pdf format is not subject to sales tax. Mo. Ltr. Rul. No. LR 7047 (Dept. of Revenue Mar. 7, 2012). The party that sought the ruling...

Friday, March 16, 2012

The Illinois Department of Revenue (DOR) recently issued guidance clarifying the requirements for sales of software licenses to be considered non-taxable. Ill. Gen. Info. Ltr. ST 12-0011-GIL (Feb. 29, 2012). Illinois taxes retail sales of tangible...

Tuesday, March 13, 2012

The New York State Department of Taxation and Finance recently issued an advisory opinion discussing the taxability of real estate consulting services. N.Y. Advisory Op. of the Commr. of Taxn. and Fin. TSB-A-12(4)S (Mar. 2, 2012). The petitioner, who is...

Monday, March 12, 2012

The Virginia Department of Taxation released a ruling that confirms that fees to renew software licenses are taxed in the same manner as the original sale of the software. Va. Rul. of the Tax Commr. No. 12-6 (Feb. 23, 2012). The taxpayer who requested...

Friday, March 09, 2012

The Illinois Department of Revenue recently issued guidance regarding the sale of newsprint and ink to those engaged in the business of graphic arts production in Illinois (Ill. Gen. Info. Ltr. No. ST 12-0010-GIL (Dept. of Revenue Feb. 29, 2012)). Newsprint...

Thursday, March 08, 2012

The Illinois Department of Revenue recently issued preliminary guidance regarding the treatment of "deal-of-the-day" offers (e.g., Groupon, Living Social) purchased by Illinois residents (Ill. Gen. Info. Ltr. ST 12-0009-GIL (Dept. of Revenue Feb. 28,...

Wednesday, March 07, 2012

The Nebraska Department of Revenue recently provided guidance to grocers regarding the taxability of energy drinks (http://www.revenue.state.ne.us/info/energy_drinks.html). Energy drinks that are labeled with a "Supplement Facts" box will be...

Tuesday, March 06, 2012

The California State Board of Equalization (BOE) recently released its list of the top 500 tax delinquent individuals and businesses for the first quarter of 2012 (California SBE News Release 22-12-H (Mar. 2, 2012)). The list, which has been expanded from 250...

Tuesday, March 06, 2012

The Wisconsin Department of Revenue recently issued guidance regarding the tax treatment of Native American tribal members residing in the state (Wisconsin News for Tax Practitioners (Feb. 27, 2012)). Generally, taxable sales of tangible personal property and...

Monday, March 05, 2012

The Utah State Tax Commission recently released a private letter ruling explaining that several web-based services are subject to tax as sales of tangible personal property. Utah Priv. Ltr. Rul. No. 10-011 (St. Tax Commn. Feb. 24, 2012). This ruling...

Thursday, March 01, 2012

Effective March 1, 2012, Texas has restructured its 9-1-1 Equalization Surcharge. This state-wide surcharge will now be imposed at the rate of $0.06 per line or connection, per month. Prior to this overhaul, the Equalization Surcharge was imposed at a rate...

Wednesday, February 29, 2012

The Colorado Department of Revenue (DOR) recently released a private letter ruling explaining that a web-based service for sending, receiving, and tracking large digital files via the Internet is a non-taxable service. Colo. Priv. Ltr. Rul. No. PLR-11-007...

Monday, February 27, 2012

The New York Department of Taxation and Finance recently issued an advisory opinion explaining that sales of an injectable substance used to treat osteoarthritis in the knee are exempt from tax. N.Y. Advisory Op. of the Commr. of Taxn. and Fin....

Friday, February 24, 2012

The Missouri Department of Revenue (DOR) recently issued a pair of letter rulings explaining the taxability of software in several different scenarios (Mo. Ltr. Rul. Nos. LR 6991 and LR and 7001 (Dept. of Revenue Jan. 27, 2012)). There are several factors...

Thursday, February 23, 2012

The Colorado Department of Revenue (DOR) recently released a private letter ruling clarifying the taxability of food and nutritional products. Colo. Priv. Ltr. Rul. No. PLR-11-008 (Dept. of Revenue Dec. 20, 2011). In the ruling, the DOR focused on whether the...

Wednesday, February 22, 2012

New York recently enacted legislation, which is set to take effect on March 1, that provides a sales tax exemption for electronic news services and electronic periodicals. While New York taxes information services, this legislation makes it clear that...

Tuesday, February 21, 2012

The West Virginia State Tax Department recently issued guidance regarding the taxability of food and food products in the state (W. Va. Taxpayer Services Division Publications TSD-419 (Jan. 1., 2012)). As of January 1, 2012, West Virginia has lowered the tax...

Monday, February 20, 2012

The Massachusetts Department of Revenue (DOR) recently issued a letter ruling discussing the taxability of pre-packaged salads sold in grocery stores (Mass. Ltr. Rul. No. 12-2 (Dept. of Revenue Feb. 8, 2012)). Massachusetts generally exempts sales of food...

Friday, February 17, 2012

The Missouri Department of Revenue recently issued a letter ruling regarding the taxability of face painting services performed at fairs and festivals (Mo. Ltr. Rul. No. LR 7007 (Dept. of Revenue Feb. 16, 2012)). Services are not subject to tax in Missouri...

Thursday, February 16, 2012

The Missouri Department of Revenue (DOR) recently issued a letter ruling discussing the taxability of optional software support and maintenance agreements relating to pre-written (canned) software that is customized for specific customers' needs (Mo. Ltr....

Wednesday, February 15, 2012

The Missouri Department of Revenue has issued a letter ruling discussing the taxability of aircraft parts and accessories sold as part of installations and repairs (Mo. Ltr. Rul. No. LR 7002 (Dept. of Revenue Dec. 20, 2011)). The sale of materials,...

Tuesday, February 14, 2012

The Utah State Tax Commission recently amended Utah Administrative Rule 865-19S-32 to reflect the fact that fuel charges incurred during the rental or lease of motor vehicles are exempt from tax if the fuel charges are optional and separately stated on the...

Friday, February 10, 2012

The Illinois Department of Revenue recently issued a general information letter discussing the taxability of textbooks purchased by school districts and subsequently resold to students. (Ill. Gen. Info. Ltr. ST 12-0003-GIL (Dept. of Revenue Jan. 11,...

Friday, February 10, 2012

The Illinois Department of Revenue (DOR) recently released a General Information Letter explaining the tax treatment of layaway service fees (Ill. Gen. Info. Ltr. ST 12-0007-GIL (Dept. of Revenue Jan. 31, 2012)). The letter addressed two different, but...

Wednesday, February 08, 2012

The Retail Industry Leaders Association (RILA) plans to spend much of 2012 encouraging Congress to consider two bipartisan bills aimed at providing greater sales tax equality between purchases made through online retailers and purchases made in-store....

Tuesday, February 07, 2012

The Iowa Department of Revenue recently clarified the tax treatment of Groupons purchased by Iowa residents. Groupon and other similar programs allow customers to purchase discounted deals that they can later use at local businesses. The Department stated...

Tuesday, February 07, 2012

The California Board of Equalization recently issued guidance regarding the taxability of interior designers. In California, interior designers must charge and remit sales tax on the sale of all tangible personal property sold to their customers, unless a...

Friday, February 03, 2012

The Missouri Department of Revenue recently issued a letter ruling discussing the taxability of construction services in the state. According to the ruling, installing protective plastic sheeting at construction sites is not subject to sales tax in...

Thursday, February 02, 2012

The New York Department of Taxation and Finance has published guidance to clarify recently enacted legislation providing sales tax exemptions for electronic news services and electronic periodicals. The legislation distinguishes between the two services;...

Thursday, January 19, 2012

In a recent Sales Tax Facts Newsletter, the Kentucky Department of Revenue explained the taxability of "deal-the-day" vouchers. In Kentucky, the sale of "deal-of-the-day" vouchers (such as those offered by Groupon or Living Social) for...

Thursday, December 22, 2011

The Utah State Tax Commission recently issued a private letter ruling addressing the taxability of PowerPoint presentations sold to Utah customers. Generally, the sale of tangible personal property or products delivered electronically are subject to sales...

Wednesday, December 21, 2011

The Indiana Department of Revenue clarified its sales tax exemption for food and food ingredients in a recent Information Bulletin. Indiana exempts the sale of food and food ingredients for human consumption. The bulletin explains that this exemption...

Tuesday, November 22, 2011

The Virginia Department of Taxation recently issued a ruling that call tracking services are subject to the communications sales and use tax but not the retail sales and use tax. Call tracking collects information about the calling customers through the...

Monday, November 21, 2011

Iowa recently enacted a sales tax refund for qualified biodiesel producers. Under this provision, a biodiesel producer will be able to claim a refund for all or a portion of sales and use tax paid in Iowa based on the amount of biodiesel produced. The...

Saturday, November 19, 2011

West Virginia recently adopted new regulations concerning per se sales tax exemptions for construction contractors working for public service districts or government-owned water or sewer utilities. According to the new regulations, which take effect November...

Monday, November 14, 2011

The Texas Comptroller’s Office has recently stated that firearm transfer fees are not taxable. Federal law requires that firearms purchased by an individual in Texas from an out-of-state vendor must be shipped to a Texas dealer for transfer to the...

Friday, November 11, 2011

With a recently enacted sales tax exemption, Maine now exempts sales of all aircraft and repair parts for aircraft. Before the enactment of this exemption, which is found at Me. Rev. Stat. Ann. § 1760(88-A), Maine provided limited exemptions for sales...

Thursday, October 13, 2011

On November 2, 2010, Massachusetts will face ballot Question 3, the “3% Sales Tax Relief Act”. If voters approve this measure, Massachusetts’ state sales and use tax rates will be reduced from 6.25 percent to 3 percent. If approved,...

Monday, October 10, 2011

The Kansas Department of Revenue addressed the taxability of non-refundable layaway fees and layaway cancellation fees in a recently released private letter ruling. When a customer puts an item on layaway, the seller may require the customer to pay a...

Friday, October 07, 2011

The South Carolina Department of Revenue recently issued a private letter ruling concerning loyalty points programs offered by telecommunications companies to their subscribers. These programs allow subscribers to accumulate points over a period of time...

Thursday, October 06, 2011

Rhode Island has significantly revised several provisions of its sales and use tax laws effective October 1, 2011. First, Rhode Island has narrowed its exemption for drugs, so that sales of over-the-counter drugs are now generally taxable. Second,...

Thursday, October 06, 2011

The District of Columbia recently amended its sales tax laws to impose tax on security services. As of October 1, 2011, the District taxes armored car services, private investigation services, and security services. In addition, the tax rate for...

Tuesday, September 27, 2011

Companies that have been certified by the North Dakota Department of Commerce as a "primary sector company" may purchase certain tangible personal property exempt from tax under the Primary Sector Development exemption. A "primary sector...

Tuesday, September 20, 2011

The California Board of Equalization (“BOE”) officially agreed to TTR’s request to exempt blood containers without limitation. Previously, the BOE reasoned that blood containers were only exempt from tax when purchased by a blood bank....

Thursday, September 15, 2011

The Texas Comptroller recently issued a ruling discussing the taxability of certain materials used in the construction of pharmaceutical biotechnology cleanrooms. Property that is necessary or that has been adapted to reduce contamination or to control...

Friday, September 09, 2011

Beginning September 1, 2011, retailers who provide an item free of charge along with the required purchase of another taxable product may purchase the item to be provided free of charge without tax, as a sale for resale. For example, department store...

Friday, September 09, 2011

Beginning September 1, 2011, the sales price of animal fat or vegetable oil that is sold, stored, used or consumed in Wisconsin for the purposes of being converted into motor vehicle fuel will be exempt from tax.

Friday, August 26, 2011

The Missouri Department of Revenue issued a letter ruling stating that sales of the Apple iPad and iPad 2 are exempt from tax during the annual sales tax holiday. The Department states that iPads fall within the definition of “personal...

Friday, August 19, 2011

The Tennessee Department of Revenue has issued a letter ruling stating that membership fees for physical fitness facilities are exempt from tax. Tenn. Code Ann. Sec. 67-6-330(a)(17)(A) specifically exempts fees paid to “any corporation or enterprise...

Monday, August 15, 2011

Several amendments to Connecticut law that affect the application of sales tax became effective July 1, 2011. The exemption for nonprescription drugs and medicines, including dietary supplements, was repealed. See Conn. Gen. Stat. Ann. Sec. 12-412. In...

Wednesday, August 03, 2011

On August 1, Governor Deval Patrick signed a bill authorizing a sales tax holiday in Massachusetts to be held on August 13-14, 2011. Ordinarily, the Commonwealth imposes a 6.25% tax on retail sales. But during the two day sales tax holiday, retail sales...

Wednesday, July 20, 2011

The Kansas Department of Revenue recently added “picture messaging” and “push-to-talk” services to their list of taxable telecommunications services in a “Questions and Answers” document issued by the Department on July...

Wednesday, July 20, 2011

In a telephone call with TTR on July 13, 2011, the Kansas Department of Revenue clarified that the sales and use tax exemption for drugs dispensed pursuant to a prescription does in fact apply to sales to hospitals and other medical facilities. Although...

Friday, July 15, 2011

Missouri lawmakers have amended Mo. Rev. Stat. Sec. 144.030 so that certain over-the-counter drugs are now exempt from Missouri sales tax. In order to qualify for the exemption, the over-the-counter drug must be prescribed by a healthcare practitioner...

Friday, July 01, 2011

By enacting Assembly Bill 28X into law earlier this week, California has joined the growing ranks of states that require large out-of-state retailers to collect taxes on purchases that their California customers make over the Internet. This new law,...

Tuesday, May 10, 2011

Please join TTR at the 12th Annual TeleStrategies Conference in New Orleans, May 24-26. For more information, see http://www.telestrategies.com/tax/index.htm.

Monday, May 02, 2011

On April 27, Georgia Governor Nathan Deal signed House Bill 168 (HB 168) into law. The act, which is the latest in a series of legislative changes bringing Georgia's sales tax laws into conformity with the Streamlined Sales and Use Tax Agreement...

Friday, April 29, 2011

In a recent policy letter, the Texas Comptroller’s office clarified the rule for determining if a business with a website hosted on servers located in the state has nexus. Texas imposes the overlapping duties of collecting and remitting sales tax...

Thursday, April 14, 2011

Arkansas has joined the ranks of the growing number of states that require many Internet-based retailers to collect sales tax on purchases shipped into their state. With the enactment of Senate Bill 738, Arkansas's "Amazon Law" statutorily...

Thursday, April 14, 2011

With the issuance of a recent General Information Letter (GIL), the Illinois Department of Revenue has summarized the principles it uses in determining whether a retailer has nexus in Illinois. When a retailer has nexus in Illinois, the retailer is subject...

Saturday, February 12, 2011

As states continue to struggle with revenue shortfalls, legislation is aimed at increasing an otherwise decreasing funding source; taxes. Interestingly, most states 'legally' require anyone who purchases goods online to self remit a sales tax...

Wednesday, January 05, 2011

Starting this weekend, Massachusetts residents will no longer have to pay the once-levied 6.25% sales tax on alcohol due to a voter-mandated repeal.

Wednesday, November 17, 2010

Turkeys beware. South Carolinian hunters, firearm collectors, aficionados and fans of shooting ranges will be enjoying a sales and use tax holiday over Thanksgiving weekend. For a 48-hour period beginning 12:01 am on Friday, November 26 to midnight...

Wednesday, October 27, 2010

In its quarterly filing with the Securities and Exchange Commission on Friday Morning October 22, 2010, Amazon stated that Texas issued an assessment for $269 million for uncollected sales tax. Texas is arguing that Amazon.com has nexus in their state...

Wednesday, October 20, 2010

On Washington’s November 2, 2010 ballot, residents will be voting on “Initiative 1107.” If Washingtonians favor this initiative, they will enjoy a reversal on the current 2 percent sale and use tax on bottled water, soft drinks, gum...

Wednesday, October 20, 2010

A 57 year old pizza restaurateur was spared a 7 year jail sentence for tax fraud on the condition that he pay back the owed $106 thousand as well as donate 12 sheet pizzas to a local mission every Tuesday for the next 52 weeks starting tonight.

Wednesday, October 06, 2010

Many New York shoppers enjoyed an exemption for clothing and shoes that cost less than $110.00 per item. However, on October 1st, 2010, New York’s clothing and shoe exemption will be temporarily put in the closet. New York decided to suspend the...

Wednesday, October 06, 2010

“Question 1” in a November 2010 Massachusetts ballot will determine whether or not the State will continue to charge excise tax on the sales of alcoholic beverages. Liquor stores in the state have argued that the 6.25 percent tax currently...

Monday, August 30, 2010

The Governor is expected to sign a bill into law requiring businesses to provide notice to purchasers who don't pay sales tax on internet purchases that they have a requirement to self pay a use tax. If the law is signed, it will go into effect as...

Friday, April 23, 2010

The Texas Court of Appeals determined that more information was needed when it decided to send the 7-Eleven, Inc. v. Combs case back to Trial Court in order to "resolve fact issues." By way of background: A decision was reached at the...

Wednesday, April 21, 2010

If Senate Bill 6143 is signed by Washington's Governor, Chris Gregoire, taxpayers can expect limitations on the availability of bad debt credits or refunds. This legislation, if passed, would limit bad debt credits and refunds to the seller and the...

Tuesday, April 20, 2010

The news continues to speculate on the future of a U.S. based VAT (value added tax) or "national sales tax." While the future of such a tax is uncertain, an understanding of what may come to pass here in the U.S. is available by looking to our...

Saturday, April 17, 2010

Software as a service is not a new concept. Provided below is a simple (though lengthy) definition of ASP or SaaS: DEFINITION (from TTR's Subscriber Website): Application Service Provider Software ("ASP" Software), also known as Software...

Saturday, April 17, 2010

As competition increases between Kindle and Apple's iBooks platform, so is the pressure on Amazon and other online retailers to collect sales tax at the purchaser's location. Daily news feeds hit the internet about state and local governments in...

Thursday, April 01, 2010

On March 1, 2010, Colorado permanently eliminated exemptions from sales and use tax on electronically delivered software and electricity used by manufacturers. Citing budget concerns, there were other exemption eliminations in areas of advertising and...

Thursday, April 01, 2010

While not final, Alabama has submitted a bill to eliminate the 4% state sales tax on groceries. The House Education Appropriations Committee approved the bill and it should go before the full House later this year.

Friday, March 26, 2010

In 2008, Indiana ruled that cutting guides sold by a manufacturer to a licensed practitioner for use in surgery were exempt from tax as orthopedic devices. Indiana reasoned that such sales were exempt from tax because "cutting guides are orthopedic...

Thursday, March 25, 2010

Virginia reasoned that the true object of training services is payment for a non taxable professional service. Therefore, all materials, meals and lodging sold along with training services are also not taxable as the purchase/sale of professional services....

Thursday, March 25, 2010

Whatever your thoughts on the health care plan legislation that passed recently, everyone has to agree that it will cost money; Estimated at $950 billion over a ten year period. While there are several provisions that account for raising these funds,...

Wednesday, March 24, 2010

Washington recently signed into law an optional tax for localities to be used for: 1. "...the purpose of providing for the operation or delivery of chemical dependency or mental health treatment programs and services and for the operation or...

Friday, March 19, 2010

Sales tax is due when purchasing/renting a portable toilet along with maintenance services in Rhode Island. Rhode Island determined that these services were of no value without the portable toilets and therefore were a part of the taxable rental of...

Thursday, March 18, 2010

California issued State Board of Equalization Publication 119 on March 1 walking through the taxability of maintenance agreements and warranties. Typically, an optional maintenance agreement is not subject to tax in California (software maintenance is...

Wednesday, March 10, 2010

The average sales tax rate in the US is now north of 8.5%. In addition to increased rates, in 2009 states reduced lookback periods for refunds, enacted legislation to increase the number of services that are subject to sales tax, and suspended many...

Wednesday, March 10, 2010

Recent legislation aimed at online sellers (Amazon) in Colorado has set off a storm of discussions in as many as 15 other states. Colorado does not stand alone as three other states enacted similar legislation. We can expect more of the same as states...

Wednesday, March 10, 2010

Wyoming House Bill 67 provides a sales tax exemption for most computer equipment purchased and used in the state by data processing centers.

Friday, February 12, 2010

Virginia is working a bill through the state legislature to gather what is perceived to be large amounts of lost revenue from online sales. While Virginia's taxing scheme under this legislation differs from others, it's target is the same: lost tax...

Friday, January 29, 2010

Effective October 1, 2009, the definition of "soft drink" now includes tea (previously not included in the taxable category of soft drinks). Wisconsin has stated that purchases made before this date will not be subject to sales or subsequent...

Wednesday, January 27, 2010

Columbia plans to increase its current 3% tax on beer to 14%.

Wednesday, January 27, 2010

Massachusetts approved a new 5% tax on satellite television providers. The new tax is part of the state's 2010 budget plan approved last summer. This tax is being challenged by the satellite industry because it is not also applied to cable...

Wednesday, January 27, 2010

Kentucky's legislature is in dialogue over imposing a sales tax on all services performed in the state. While it appears unlikely at this time, consideration of imposing sales tax on services would place Kentucky with a very few states that generally...

Tuesday, December 15, 2009

The U.S. Supreme Court denied a request by Time Warner Telecommuncations to review whether Oregon's percentage-of-gross revenue fees are "taxes" as defined by Federal law. The Federal Court of Appeals (for the 9th Circuit) said they were...

Friday, December 04, 2009

Section 552 of Speaker Nancy Pelosi’s Health Care Bill proposes to establish an excise tax in the amount of 2.5% on medical devices sold for use in the United States. The MDMA (Medical Device Manufacturers Association) reports that the cost to their...

Wednesday, November 04, 2009

Missouri decided to impose tax on Yoga based on recent court cases upholding the imposition of sales tax on services provided at fitness facilities. While Yoga is a fitness activity and there are many forms of Yoga, including versions that have no...

Tuesday, November 03, 2009

The Georgia Department of Revenue ("GA DOR") issued an Informational Bulletin SUT - 2009-10-28 in October of this year. The GA DOR is granting permission to take credits on returns in order to recover sales or use tax erroneously paid on...

Thursday, October 29, 2009

The New York Department of Taxation and Finance ("DOT") rejected a taxpayer's argument that injectible dermal fillers were exempt prosthetic devices. The DOT determined that sales of dermal fillers to practitioners in New York are taxable as...

Thursday, October 29, 2009

With daily reports from local newspapers and online articles (occasionally national news) of reduced sales tax collections, it is no mystery why several state tax agencies are limiting or reducing the amount of tax recovery available. Missouri reduced...

Thursday, October 29, 2009

With recent decisions from Illinois, Virginia, New Jersey and recent professional experiences with California, Florida, Tennessee and Texas; one thing is certain - it is not as easy to obtain a refund or credit as it used to be. More and more we are...

Tuesday, October 27, 2009

Portland permits phone companies to do business in the city only after the companies register for and pay a franchise fee. This fee permits the phone companies the right to access Portland's right of ways (the areas where wires, etc. are buried in...

Tuesday, October 27, 2009

As of Jan. 1, 2010 Washington will not accept a resale certificate in order to exempt wholesale sales. The state now requires an application and issuance of a reseller permit before wholesale sales will be exempt from tax. Washington has made it clear that...

Sunday, October 25, 2009

Illinois clarified its rules surrounding nexus in a recent response to a taxpayer.

Sunday, October 25, 2009

Earlier this year Georgia announced its intention to impose sales tax on portable toilet rentals within the state. As unusual as Georgia's announcement, its reversal of this earlier intention is even more curious. Fortunately for taxpayers, Georgia has...

Sunday, October 25, 2009

"Deal-makers may need to start budgeting for a special transaction tax if some members of Congress get their way. While such a tax is not expected to be passed anytime soon, it is one of the ideas being floated about on Capitol Hill these days as a...