Sales Tax
How Should States Tax NFT Sales?
NFTs grew out of blockchain, a decentralized, “peer-to-peer network that sits on top of the internet.” Blockchain emerged in ...
Gail Cole
Gail is a sales tax expert with a penchant for digging through the depths of BOE sites and discovering and reporting rate changes across the country.
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Sales Tax
What Your Clients Need to Know about Nexus, Home Rule, and Sales Tax
Businesses required to collect and remit sales tax in multiple states have a hard row to hoe. Keeping track of changing sales tax rates, online sales tax requirements and ...
Sales Tax & Compliance
Europe Starts Mandating E-Invoicing to Maintain Transaction Tax Compliance
Ecommerce has enabled millions of small and midsize businesses to tap into the global market. This presents enormous opportunities. It can also create a world of tax requirements.
Taxes
Remote Workers Can Create Multiple Taxation Issues for Businesses
A growing number of companies, including Airbnb, have told employees they can “live and work anywhere.” This can pose a world of new tax obligations.
Sales Tax & Compliance
In-Store Retail is Making a Comeback
More than half of consumers surveyed now prefer to find new products in-store rather than online, according to a new report by 5WPR. They enjoy speaking with sales people, getting their hands on products, and simply basking in the in-store ambiance ...
Sales Tax & Compliance
Colorado Retail Delivery Fee is a New Challenge for Wine Shippers
Colorado’s new retail delivery fee applies to any retail delivery in the state that’s made by motor vehicle (including common carriers like FedEx and UPS) and contains at least one item of tangible personal property subject to the state sales or use tax. Since sales tax applies to sales of wine, the retail delivery fee applies to direct-to-consumer (DTC) wine shipments.
Sales Tax & Compliance
Brick-and-Mortar Companies Face Challenges Selling Online
More than half of consumers surveyed now prefer to find new products in-store rather than online, according to a new report by 5WPR. They enjoy speaking with sales people, getting their hands on products, and simply basking in the in-store ambiance that was closed to them for a time due to COVID-19. Likewise, more than 75% of U.S. adults are comfortable dining out.
Taxes
Remote Workers Abroad Can Cause Employer Headaches
Ordinarily, having an employee working remotely in another state would likely give your company nexus with that state. But after the pandemic hit, several states temporarily waived the enforcement of certain nexus laws. Indiana, Massachusetts, Mississippi, New Jersey, Pennsylvania, and Washington, D.C., were among the first to announce they wouldn’t treat working from home as a nexus-generating activity if the arrangement was temporary and due to COVID-19.
Sales Tax & Compliance
Wayfair Continues to Deal Out Complexity with Marketplace Laws
Four years ago this month, the Supreme Court of the United States rocked the world of retail with its ruling on South Dakota v. Wayfair, Inc. (June 21, 2018). The decision allowed states to tax remote sales — those made by businesses with no physical ...
What Brick-and-Mortar Businesses Need to Know About Compliance
Automating compliance tasks can help brick-and-mortar retailers thrive in new situations.
Sales Tax & Compliance
New York Extends Alcohol To-Go Drink Sales, Clarifies 'Substantial Food Item' Provision
When the pandemic forced restaurants and bars to close the front of the house, New York was the first state to temporarily authorize takeout and delivery sales of alcoholic beverages. Cocktails to go helped many businesses in many states weather the ...
Sales Tax & Compliance
Explaining Global Tariffs: Let's Look at a Can of Tuna
Though bare shelves have become a familiar sight during the pandemic, American supermarkets still offer an incredible array of choices when it comes to food. There are more than 100 commonly eaten breakfast cereals alone, and entire warehouse stores ...
Sales Tax & Compliance
Texas Says Mobile Delivery App Fees are Taxable
Restaurants contracting with the delivery app are responsible for remitting to the state the tax due on meals.
Sales Tax & Compliance
How Marketplace Facilitators Can Navigate Tax Compliance in 2022
Getting tax wrong can be costly for any business, but particularly for marketplace facilitators with a high volume of sales. Unless a marketplace facilitator can demonstrate that a failure to collect and remit applicable taxes was due to receiving ...
Sales Tax & Compliance
State-by-State Sales Tax Holidays for 2022
A sales tax holiday is a limited time period during which some normally taxable products are exempt from sales tax. Approximately 17 states provide one or more sales tax holidays each year; the precise number fluctuates because some states adopt new ...
Accounting & Audit
States Look at Taxing the Metaverse, But What is It?
Sales transactions are presumed taxable in states with a sales tax (unless there’s a specific exemption or exclusion), most states haven’t yet clarified which sales tax laws apply to sales made in the metaverse. When will they start?
Sales Tax & Compliance
States Want Online Marketplaces to Police for Stolen Goods
To help prevent someone from selling stolen goods on a marketplace, California and several other states want marketplaces to obtain and share the names and contact information of high-volume marketplace sellers.
Sales Tax & Compliance
More Taxation on Services Expected this Year
Though the United States economy is “dominated by services-oriented companies,” most states currently tax only select services, if any. That could change in 2022: Legislation seeking to tax services has been introduced in Indiana and ...
Sales Tax & Compliance
Tennessee Starts Accepting Sales Tax Exemption Certificates from Other States
The policy change results from the repeal of Tennessee’s Sales and Use Tax Rule 96, which required Tennessee suppliers to collect Tennessee sales tax on products sold to out-of-state dealers unless such dealers provided a Tennessee resale ...
Product & Service Guide
3 Steps to Ensuring Small Business Sales Tax Success in 2022
The end of the year is a good time to take stock of your business, especially if you’re a small business planning to grow in 2022. A year-end review is particularly critical this year, given COVID-19 disruptions.
Sales Tax & Compliance
Kansas Considers Reducing or Exempting Groceries from Sales Taxes
Kansas is one of just a few states that taxes groceries at the full sales tax rate. That won’t be the case for much longer if Governor Laura Kelly gets her way.
Product & Service Guide
2022 Tax Changes Report Shows Domestic & Global Sales Tax Trends & Updates
The disrupting effect COVID-19 has had on the economy can’t be underplayed. It’s led to factory closures and ship quarantines at port, which has clogged the global supply chain to an astonishing degree. On November 9, 2021, for example, 111 ships were ...
Product & Service Guide
How to Back Out of Wayfair: Can a Business De-Register When Sales Drop?
Sales Tax & Compliance
Cities Look to Tax Online Streaming Services
Transitioning from cable to streaming services can increase choice and reduce costs for consumers, but the more people cut the cord, the less tax revenue local governments receive. That’s the crux of ongoing David-versus-Goliath-style battles in Texas ...
Sales Tax & Compliance
West Virginia Imposes Sales Tax on Streaming Services
Sales Tax & Compliance
Top Trends in State Sales Taxes and Policies
Change is afoot as we come to the end of 2021. As COVID-19 relaxes its stranglehold on the United States, states are considering how tax policies can be adjusted to help mitigate the worst effects of future crises.
Sales Tax & Compliance
Missouri Becomes Last Sales Tax State to Adopt Wayfair Legislation
On June 30, 2021, Missouri became the last state with a sales tax to require out-of-state sellers and marketplace facilitators to collect and remit sales and use tax. It’s been a long time coming.
![ecommerce_Pixabay_Tumisu_1992280_1280.6058bb16f3e84[1]](https://www.cpapracticeadvisor.com/wp-content/uploads/sites/2/2021/05/ecommerce_Pixabay_Tumisu_1992280_1280.6058bb16f3e84_1_.609086efb5013.png)
Home
Wayfair Dustup in Kansas Ends with New Economic Nexus Threshold and Marketplace Facilitator Law
Lawmakers in Kansas gathered May 3, 2021, to start finalizing the state budget and attempt to override several gubernatorial vetoes. Shortly after convening, they succeeded in overriding the veto on Senate Bill 50, which requires marketplace ...
Niche Practice
Florida Enacts New Sales Tax Laws Impacting Nexus and Marketplace Facilitators
Out-of-state sellers and marketplace providers will have to start collecting Florida sales and use tax on July 1, 2021. After years of discussion and failed attempts, Florida has enacted an economic nexus and marketplace facilitator law.
Sales Tax & Compliance
States Start Taxing Digital Advertising
Digital advertising taxes have been introduced in Connecticut, Indiana, Montana, New York, and Washington, though the Montana measure has already been tabled.
Sales Tax & Compliance
Will Digital Advertising Taxes Spread in 2021?
As Maryland prepares to enforce the first digital advertising tax in the nation, Massachusetts and several other states are pursuing digital advertising taxes of their own.
Sales Tax & Compliance
Georgia May Start Taxing Digital Products in July
Lawmakers in Georgia are looking to extend the state’s sales and use tax to digital goods and services. If House Bill 594 is enacted as written, audiovisual works, electronic books, video games, and a host of other digital products and services would ...
COVID-19
Virginia Gives Sales Tax Exemption to Facemasks, PPE to Help Fight Covid
Virginia has adopted a temporary sales tax exemption for personal protective equipment. Lawmakers hope it will encourage Virginia businesses to adhere to the measures necessary to control, prevent, and mitigate spread of the coronavirus.
Sales Tax & Compliance
Washington State Says Attendance at Trade Shows is a Sales Tax Nexus
There’s been a lot of emphasis in recent years on the United States Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc., which allowed states to tax businesses with no physical presence in the state. However, physical presence in a state ...
Sales Tax & Compliance
New York Takes Another Shot at Taxing Digital Advertising Sales
As it did in 2020, New York is looking to tax digital advertising services. Two bills introduced last week would broaden the state’s sales tax to digital advertising services. Another would tax gross revenue derived from digital advertising services ...
Sales Tax & Compliance
Maryland Gives Businesses a Break with Sales Tax Filing and Payment Deadlines
To help businesses weather the devastating and ongoing effects of the COVID-19 pandemic, the Comptroller of Maryland has extended filing and payment deadlines for certain Maryland business taxes.
Product & Service Guide
Brexit Mayhem Exhibit A: The Case of the Leather Bike Seat
Prior to Brexit and the implementation of the U.K. ecommerce package, companies with locations throughout the EU could freely move goods between the U.K. and other EU member states. But now that the U.K. has left the Customs Union and VAT regime, goods...
Home
Four More States Vote to Legalize and Tax Recreational Marjiuana
On November 3, 2020, residents of Arizona, Montana, New Jersey, and South Dakota voted to allow the possession, use, and retail sale of marijuana. Once retail stores in these states are up and running, tax from sales of cannabis and cannabis products ...
COVID-19
Tennessee Lowers Sales Tax Economic Nexus for Online Sellers
Retailers with no physical presence in Tennessee are currently required to collect and remit Tennessee sales tax if their annual sales into the state exceed $500,000. Starting October 1, 2020, out-of-state businesses and marketplace facilitators must ...
Home
Chicago Starts Taxing Wine-by-Mail Orders
Product & Service Guide
States Searching for Revenue Get Aggressive on Sales Tax Enforcement
Federal, state, and local officials scrambled to support struggling businesses and individuals when the coronavirus (COVID-19) first hit. They placed temporary moratoriums on evictions, pushed income tax due dates to July 15, and waived interest and ...
Sales Tax & Compliance
The Tricky Business of Duties Owed on International Shipments
Shipments that cross international borders are often subject to customs duties or tariffs, but sometimes they aren’t. The product being shipped may be tax exempt. Or, the value of the shipment may be under the country ...
COVID-19
Louisiana Gives Dept of Revenue Power to Provide Tax Relief
Lawmakers in Louisiana have made it easier for the Louisiana Department of Revenue to provide tax relief in the wake of a gubernatorial or presidential declaration of disaster or emergency.
Sales Tax & Compliance
Sales Taxes in the U.S.: 2020 Mid-Year Update
The midyear update to Avalara's annual sales tax changes report takes stock of what’s transpired in the world of sales tax since the start of the year. It also introduces emerging trends.
Sales Tax & Compliance
Sales Tax Laws Roundup: April-May 2020
At the start of April, individuals and organizations were just coming to terms with stay-at-home orders and closures of nonessential businesses. As states start to relax those provisions, businesses are beginning to prepare for what comes next. Read on to
Home
How to Quickly Register for Sales Tax in New States
Taxing remote sales is relatively new. Since the first states established their sales tax systems in the 1930s, states have had limited taxing authority over businesses based in other states. Indeed, the Supreme Court of the United States ruled more ...
Home
Kansas Pushes for Marketplaces to Collect Sales Tax for Third-Party Sellers
Home
Utah to See Big Changes to Sales Taxes in 2020
Sales Tax & Compliance
How to Quickly Register for Sales Tax in New States
Many businesses share the goal of increasing sales and expanding into new markets. But, now that most states tax sales by out-of-state sellers, such growth often brings new sales tax collection obligations.
Sales Tax & Compliance
2019 Saw Many Sales Tax Changes Across U.S.
Hawaii, Illinois, Michigan, and Wisconsin now require marketplace facilitators to collect and remit tax on third-party sales – this was effective January 1, 2020.
Sales Tax & Compliance
Hawaii and Arizona Expand E-Filing and Payment Requirements for Sales Tax
Home
Origin Sourcing Sales Tax Presents Tricky Issues for Businesses
States can source sales by the location of the seller (the origin of the sale, aka origin sourcing), or the location where the consumer receives the item or service (the destination of the sale, aka destination sourcing). Most states use destination ...
Accounting & Audit
How Tariff Uncertainties Can Impact the Supply Chain
When tariffs increase, businesses generally have one of three options: Absorb the higher cost, increase prices to pass it on to customers, or rework the supply chain to avoid the higher tariffs. There are advantages and disadvantages to each.
Product & Service Guide
Illinois Starts Two Sales Tax Amnesty Programs
Two tax amnesty programs have been established in Illinois by Public Act 101-0009: a general tax amnesty program administered by the Illinois Department of Revenue, and a franchise tax and license fees amnesty administered by the Secretary of State.
Home
Kansas Imposes Sales and Use Tax Requirements to Fullest Extent Allowed
As of October 1, 2019, ALL out-of-state sellers making sales for delivery into Kansas are required to register with the Department of Revenue and collect and remit Kansas sales or use tax.
Home
North Carolina to Tax Certain Digital Property Starting in October 2019
In the last decade, buying habits have shifted dramatically to keep pace with new technologies. Though sales of printed books are experiencing a resurgence, electronic books have a solid market share; sales of streamed music now dwarf digital ...
Home
Sales Tax 101: What’s a Registered Agent, and Does Your Client Need One?
You’re not alone if you’ve never heard of a registered agent. But if your client recently developed a sales tax collection obligation in one or more new states, they probably need to retain one. Read on to learn more about this mandatory point person.
Home
State-by-State List of Back to School and Summer Sales Tax Holidays for 2019
Product & Service Guide
Several States See Changes to Sales Tax Regs
Maine will require marketplace facilitators to collect and remit the tax due on all sales made through their platform as of October 1, 2019. Learn more.
Product & Service Guide
New Hampshire Law Makes Other States Jump Through Hoops on Sales Taxes
Senate Bill 242 requires “foreign taxing jurisdictions” (aka, other states) to provide written notice to the New Hampshire Department of Justice at least 45 days prior to conducting examinations of sellers in New Hampshire, imposing sales and use tax ...
Home
One Year Out: Wayfair and SST Converge to Shape Remote Sales Tax Legislation
Almost one year ago, the seminal United States Supreme Court ruling in South Dakota v. Wayfair, Inc. (June 21, 2018) shattered a long-standing physical presence rule that prevented states from imposing a sales tax collection obligation on out-of-state ...
Home
How Sales Tax Can Encourage Disaster Preparedness and Recovery
Record-breaking rain, floods, and tornados are plaguing the center of the country. The West Coast is preparing for yet another year of ravaging wildfires.
Home
Several States Make Notable Changes to Sales Tax Rules
States have been busy on the sales tax front lately. Here are some of the most notable sales tax changes that could impact your sales tax compliance.
Home
Oklahoma Mixes New Economic Nexus Law with Old Reporting Option for Marketplace Facilitators
Oklahoma has required marketplace facilitators, remote sellers, and referrers with at least $10,000 in sales in the state to collect and remit sales tax or comply with non-collecting seller use tax notice and reporting requirements since July 1, 2018.
Product & Service Guide
New Mexico to Tax Out-of-State Sellers and Marketplace Providers
New Mexico is the latest of more than 35 states to adopt economic nexus and impose a sales tax collection requirement on remote businesses that have a certain amount of economic activity in the state.
Home
April Sales Tax Law Roundup
This sales tax roundup packs a punch. Here are some of the most notable sales tax changes that could impact your sales tax compliance.
Sales Tax & Compliance
5 Ways to Fail a Sales Tax Audit
All businesses relish a good sales tax audit. After all, what’s not to like? And did you know it’s possible to spend more time, money, and resources than absolutely necessary during an audit? It’s true. Simply follow the five tips below and you’ll ...
Product & Service Guide
More States Taxing Streaming Services Like Netflix and Hulu
Fewer North Americans tune into traditional television and cable these days, and it’s harder to find an American or a Canadian who doesn’t stream at least some shows or movies. Likewise, despite the vinyl revival, there’s a rising generation for whom ...
Sales Tax & Compliance
States Are Hunting for Sales Tax Avoiders
Close to 30 states have passed laws requiring out-of-state sellers to tax their sales into the state. How do state tax authorities know whether such businesses are collecting and remitting tax as they should?
Sales Tax & Compliance
State-by-State Guide to the Taxability of Digital Products
Sales tax laws don’t always keep up with the times. Although more and more of us now use digital products in our work and fill our free time with ebooks, Spotify, and Netflix, many states still don’t tax their sale or rental of these products.
Sales Tax & Compliance
5 Ways to Fail a Sales Tax Audit
All businesses relish a good sales tax audit. After all, what’s not to like? And did you know it’s possible to spend more time, money, and resources than absolutely necessary during an audit? It’s true. Simply follow the five tips below and you’ll ...
Home
Sales Tax Changes Businesses Need to Know for 2019
Several states have already filed economic nexus legislation for consideration in 2019, including Arkansas, Missouri, and Virginia. Meanwhile, sales tax simplification measures are under consideration in Texas because the Lone Star State has ...
Product & Service Guide
Guide to Sales and Use Taxes on Shipping for Every U.S. State
Ready or not, the holidays are here. This is the busiest time of year for most retailers — and typically involves an enormous amount of shipping. A review of state sales tax rules for shipping and delivery charges therefore seems in order.
Product & Service Guide
New Small Seller Exceptions for Sales and Use Taxes
To determine how much business a remote seller is doing in a state, economic nexus laws rely on the volume of sales, the number of transactions, or both. For example, the South Dakota law that led to the demise of the physical presence rule uses the ...
Sales Tax & Compliance
Do Businesses Have to Report Non-Taxed Sales to Other States?
You might think your retail or ecommerce clients have no legal obligation in states where they aren’t required to collect and remit sales tax. You, and your clients, could be wrong.
Product & Service Guide
Congress May Consider Remote Sales Tax Law Before Supreme Court Case
The explosion of ecommerce has exacerbated an issue that’s long rankled many states: their inability to tax out-of-state businesses making sales within their borders. States have challenged this physical presence limitation numerous times but the ...
Product & Service Guide
The Secret Lives of Accountants
Over the centuries, accountants have been fashionistas, inventors, and spies. They fight crime, write books, and uphold the law. The more one learns about accountants, the more surprises one uncovers. Secret lives, indeed.
Home
U.S. Supreme Court Will Hear Challenge to Quill Sales Tax Ruling
The U.S. Supreme Court has agreed to consider a case that has the potential to change how states can tax sales by ecommerce merchants and other out-of-state sellers. The case, South Dakota v. Wayfair, Inc., challenges the Court's decision in Quill Corp. v
Home
How to Help Your Clients Avoid - Or Survive - A Sales Tax Audit
Many small and mid-size businesses hire accountants and bookkeepers with the expectation they’ll help prevent an audit. Unfortunately, you can’t guarantee your clients won’t be audited for sales and use tax. No one can: States need sales and use tax ...
Sales Tax & Compliance
Taxing the Sun? State Taxes and the 2017 Solar Eclipse
It’s been 38 years since a total eclipse of the sun has been visible from all 48 contiguous United States, so the one set to occur August 21, 2017, is a big deal. It’s been on the calendars of eclipse watchers for years, if not decades.
Product & Service Guide
Florida Case Could Change U.S. Online Sales Tax Laws
Courts to date have disagreed on this matter. An administrative law judgment initially upheld the department’s audit findings in March 2013. The Fourth District Court of Appeals then found the state to have “impermissibly burdened interstate commerce ...
Advisory
Gillette Co. v. Franchise Tax Board: Why It Matters
If the court had ruled the Compact was a valid choice regardless of state law, then every state would have repealed it. As it stands, the relevance of the Compact is likely to be revisited once all states use only sales to apportion income ...
Product & Service Guide
When Are Deliveries Subject to Sales Tax?
Delivery charges don’t just pertain to food. They can be slapped on anything a business sends to a consumer, from a slim book of poetry to a multi-million dollar yacht.
Product & Service Guide
Congress Considers Bill Banning Online Sales Taxes By States
Tired of Congressional inactivity on internet sales tax, a growing number of states have enacted legislation enabling them to tax sales made by out-of-state sellers. The majority of these laws maintain that a connection between a state and seller is ...
Home
Taxing Pokemon: States Get In On the Action
Lures aren’t the only way to spend real money in the Pokémon world. Although free to play, “Players can spend real money on PokéCoins, the in-game currency of Pokémon Go.” 99 cents gets you 100 PokéCoins; $99.99 buys you 14,500. According to developer ...
Product & Service Guide
New Fiscal Year Brings Sales Tax Changes Across the Country
There have been a number of red-letter changes to date in 2016, most notably with respect to state sales tax rates, eliminating exemptions, and remote sales tax laws. More are sure to follow during the second half of the year.
Product & Service Guide
States Redefine Nexus to Tackle Online Sales Taxes
As the middle of the year approaches, it’s worth taking stock of remote sales tax. Numerous states have enacted or are considering legislation enabling them to collect sales and use tax revenue from remote retailers lacking a physical presence in the ...
Product & Service Guide
The Skinny On The Soda Tax Debate
Each state determines how these products are taxed differently. When multiple jurisdictions and products are involved, time spent on sales tax management can quickly snowball. Sales tax automation software like Avalara AvaTax takes this tedious ...
Product & Service Guide
The Sticky Business of Excise and Sales Tax Requirements
There are a variety of industries that find themselves with a unique tax conundrum…they are required to calculate and file both sales and excise taxes to run their day-to-day business. So, what’s the big deal?
Product & Service Guide
Why Are Products "Sometimes" Taxable?
Just when you thought you had a handle on the rules for taxing goods and services, you come face to face with the new compliance bully on the block: “sometimes taxable.” Businesses must correctly deal with these sometimes exempt and sometimes subject ...
Product & Service Guide
Sales Tax 2016: What Can We Expect in the New Year?
The coming of a New Year is a time to reflect on the past — what went well and what you wish you’d done differently.
Product & Service Guide
3 Ways to Win New State and Local Tax Clients
Large corporations with armies of attorneys and accountants excel at taking advantage of tax credits and finding cost saving elements within a specific industry. Yet smaller companies tend to self-censor, assuming they don’t qualify.