Iowa and Minnesota Enact Laws Expanding the Application of State Sales Taxes.

Monday, July 1st, 2013

 
 
Share
Link
Iowa
General

Iowa and Minnesota enacted laws that may increase the number of retailers required to collect state sales and use taxes. These laws went into effect on July 1, 2013.

Iowa has added affiliate nexus provisions to its statutes. These provide that a retailer may be required to collect Iowa sales tax if one of its affiliates does business in Iowa. Retailers maintaining places of business in Iowa are required to collect Iowa sales and use taxes. The new provisions create a presumption that a retailer maintains a place of business in Iowa if a person with substantial nexus in Iowa does business in Iowa as an affiliate of the retailer.

Minnesota's new provisions create a presumption that a retailer has a "solicitor" in Minnesota (and is thus required to collect Minnesota sales and use tax) if the retailer enters into an agreement with a resident to refer potential customers to the retailer. This includes agreements regarding referrals via website links.

Iowa: http://coolice.legis.iowa.gov/linc/85/external/govbills/HF625.pdf

Minnesota: https://www.revisor.mn.gov/laws/?id=143&doctype=Chapter&type=0&year=2013


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...