The relationship between nonprofits and sales tax can be confusing. Nonprofits are often exempt from paying federal income taxes, but this doesn’t automatically mean they’re exempt from state sales taxes. Each state has its rules for how sales tax applies to nonprofit organizations, and navigating these regulations is essential to staying compliant. In many states,…
If you don’t collect sales tax on a taxable sale, you need to validate the exemption by collecting an exemption certificate or resale certificate from your customer. Otherwise, you could be liable for the uncollected tax, associated penalties, and interest. What is an Exemption Certificate? An exemption or resale certificate is a document that identifies…
CT: In Connecticut, professional athletes enjoy a unique tax benefit that sets them apart from their peers in other states. The state allows these athletes to write off clothing and personal safety equipment expenses. However, it’s important to note that this exemption is specific and limited to items that can be worn, such as life…
TN: Two different sales tax holidays will help give Tennesseans a break in their wallets. The first is the annual back-to-school sales tax holiday, held on the last weekend of July. The second is the Grocery sales tax holiday, which begins Aug. 1. The back-to-school sales tax holiday, clothing and school supplies, including some electronics…
TX: When it comes to landscaping, lawn, and plant care services in Texas, understanding the intricacies of sales tax is crucial. As a lawn care service provider, you must know your business’s taxable and non-taxable aspects to ensure compliance with state regulations. Taxable and Non-Taxable Services: Any individual or business that offers landscaping, lawn, or plant…
TX: The proposal (HB 300) would eliminate sales taxes on diapers, baby wipes, and bottles; feminine hygiene products, including tampons, tampons, and menstrual cups; maternity clothes; and breast milk products. Texas families will be exempt from sales tax on menstrual products and certain baby supplies under a bill passed by the Texas House of Representatives…
Maryland – New Sales & Use Tax Exemptions Effective Summer 2022 Diabetic Care Items Exempt Diabetic care items are exempt from Maryland sales and use tax effective July 1, 2022. The following items will be exempt: insulin; glucose tablets, drinks, and gels; blood and urine ketone meters and supplies; insulin pumps, infusion sets, pump reservoirs…
Manufacturers, wholesalers, and distributors believe they have nominal sales tax obligations due to the probability of sales tax-exempt transactions. This is not always correct. Businesses can be manufacturers and distributors, as wholesalers and distributors are often used interchangeably. The theory to consider is whether the sales by these types of businesses are exempt or not…
TX—Sales & Use Tax: Social Media Management Services Texas has provided sales and use tax guidance on social media management services. The different types of services that are involved in social media management are discussed. Written Content Writing original content such as a blog and posting comments on social media is not taxable. Proofreading and…
AR: Arkansas taxpayers’ protest against the sales tax assessment on their purchase of a vehicle was denied for failure to prove entitlement to the motor vehicle exemption for disabled veterans. The taxpayers claimed an exemption from the payment of sales tax for their purchase of the vehicle available to disabled veterans who have received financial…
