MISSOURI: A funeral home’s (taxpayer’s) purchase of burial vaults was subject to Missouri sales and use tax because the taxpayer was the end-user of the vaults. Generally, a contractor is the final user and consumer of the materials and supplies used and consumed in fulfilling a construction contract and which become part of a completed…

IOWA: An electric utility company’s (taxpayer’s) credits to its customers for local electricity generation was exempt from Iowa sales and use tax. Generally, if a trade-in transaction meets the requirements of the relevant law, the amount of credit received from the trade-in is exempt from tax. In this matter, the taxpayer provided electricity to its…

INDIANA: A recreational vehicle business (taxpayer) was required to remit and collect Indiana sales tax on sales of recreational vehicles (RVs) to its customer because it was not entitled to the casual sales exemption. Generally, Indiana gross retail tax is not imposed on gross receipts from casual sales except for gross receipts from casual sales…

Arkansas: Voters in Arkansas have approved making a temporary 0.5% sales tax permanent. The revenue is dedicated to state and local transportation. According to the latest data, 45% voted against the measure, while 55% voted for it. The approved measure will amend the Arkansas Constitution to permanently have a 0.5% sales tax for state highways, bridges,…

New York:  A taxpayer’s coupon clearing products it sells to advertisers that issue discount coupons and the retailers that accept them are not subject to New York sales and use tax. Products Sold To Retail Customers The primary function of the coupon clearing product that the taxpayer sells to its retailer customers is the service…

IA – For Iowa sales and use tax purposes, a yoga franchisee’s (taxpayer’s) classes were not subject to sales and use tax as the instruction charges qualified for the statutory exemption. In this matter, the taxpayer offered yoga classes to customers and petitioned for a declaratory order clarifying whether its services of yoga classes to…

Missouri: A corporation was not liable for the Missouri sales and use tax on fees paid by its customers for the taxpayer’s guided fly fishing trips as the taxpayer was neither a place of amusement nor did it control the place of amusement. In this matter, the taxpayer admitted that it did not offer classes,…

Illinois—Sales and Use Tax: Rates of Reimbursement for Physician Services Increased; Provisions Relating to Annual Assessments on Hospitals Changed An amendment to Illinois sales and use tax legislation discusses that (1) the Department of Public Health (department) is increasing rates of reimbursement for physician services to as close to 60% of Medicare rates in effect…

Rates are constantly changing, and business owners should check their state comptrollers’ offices to update their rates. Key Findings are: Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest…

Arkansas – Farmer’s ATV Purchase Did Not Qualify for Farm Machinery and Equipment Exemption A taxpayer’s protest against Arkansas sales tax assessment on its purchase of an ATV was denied because the taxpayer failed to prove entitlement to the farm machinery and equipment exemption by a preponderance of the evidence. Generally, farm machinery and equipment…