The latest in the battle over Internet sales tax: the U.S. Supreme Court denied Amazon’s request for a ruling on New York’s online sales tax law.
Will this change the way online commerce works? Continue reading
Online retailers have an ace up their sleeves on Black Friday: no sales tax. Not only can they discount that iPad Air with retina, but they can also skip the sales tax you would normally pay in a brick-and-mortar store. This is one reason many consumers prefer to shop online on Black Friday, Cyber Monday and throughout the year.
Yet this No Sales Tax Zone is shrinking. A growing number of states require many online retailers to calculate, collect and file sales tax. Continue reading
There are few things more captivating than the battle of good and evil, especially when it’s all jazzed up with pretty dresses and giant winged beasts. But what value do fairy tales have for your life, let alone your business?
Well, for one, the most powerful magic is always the kind that you can attain without the aid of fairies or magic spells: virtues of love, loyalty, courage, and the like can be well applied to everyday life. But that’s not where the practicality of these enchanted stories ends.
That’s right; we’re going to look at fairy tale sales tax. Continue reading
New taxes and tax rate changes fill the news this week, as states prepare for 2013 to become 2014. But Hanukkah and Christmas come before New Year’s, and several states are reminding that if you don’t pay sales tax when you shop online for the holidays, you owe use tax.
Other sales tax news:
• The Supreme Court agrees to talk about talking about New York’s Amazon’s tax;
• The French protest a proposed VAT increase;
• Louisiana’s tax amnesty comes to an end;
• Georgia considers raising the rate of sales tax; and
• Rhode Island considers getting rid of sales tax altogether.
Stay on top of sales tax news. Continue reading
Are states feeling magnanimous? This week several major sales tax exemptions were proposed or enacted:
• Numerous states allow sales tax exemptions for active service members or veterans;
• Massachusetts wants to return tax dollars collected on sales of computer software and services;
• Washington State wants to give Boeing several generous tax incentives, including a sales and use tax exemption for the construction of facilities used to manufacture commercial airplanes; and
• North Dakota provides sales tax rebates to victims of the 2011 floods.
What on earth is going on? Read this week’s sales tax news and find out. Continue reading
Shifting responsibility to third parties happens in all aspects of life. In business, small and medium sized companies leverage the economies of scale owned by large specialized companies every day. Specialized providers beat the in-house cost to complete all kinds of traditional and not-so-traditional functions; the use of third party providers for order fulfillment and shipment needs is a common expression of this trend.
Most retail vendors call these providers “drop shippers.” Drop shippers are those third parties who accept an order from a vendor, bill the vendor for the item, and then ship the item directly to the vendor’s retail customer. The vendor collects cash from the retail customer and pays the drop shipper for their time and the item they shipped, usually at a wholesale price.
So far, so good, right? Well for business purposes, the drop ship arrangement is a match made in MBA heaven: the vendor expands their geographic and time boundaries without investing in new facilities, and the drop shipper makes more sales without the hassle of actually dealing with customers. Cool for everyone, right? Actually, the model even works for the sales tax collector some times. Continue reading
• Amazon began collecting sales tax in Connecticut, Massachusetts and Wisconsin;
• Ohio has been granted full membership to the Streamlined Sales Tax Project;
• Coloradans have voted to impose heavy taxes on retail sales of recreational marijuana; and
• Utah is sweetening sales tax for remote sellers who voluntarily comply.
Read on and learn more. Continue reading
Sales tax news this week includes:
Get the details for these stories and more below. Continue reading
Amazon taxes have been in the headlines this week. First the Illinois Supreme Court ruled that the state law imposing a sales tax obligation on remote retailers was discriminatory; then the New York Attorney General urged the United States Supreme Court to not hear a case challenging New York’s Amazon tax.
But there is other news in the world of sales tax. Accommodations tax in Nevada and South Carolina, for instance, and how to tax holiday items in Colorado. Find out the state of California’s tax on Medi-Cal managed care plans, and how to calculate the taxable sales price in Maine.
Of course, the question we all want answered is this: Just how do eating utensils impact the taxability of take-away food in Minnesota? Discover the startling answer and more, in this week’s sales tax news. Continue reading
The Illinois Supreme Court ruled that the state’s click-through nexus law—often called an Amazon tax law—is discriminatory. In doing so, it upheld a determination made by an Illinois circuit court. According to the law, passed in 2011, if an out of state business generated over $10,000 in annual gross receipts from sales involving online referrals from Illinois affiliates, it was required to collect and remit Illinois sales tax. Continue reading