TEXAS: A mobile lodging provider was subject to Texas sales and use tax as the Taxpayer’s lodges, providing mobile lodging, dining, and recreational facilities to oil and gas industry workers, were considered tangible personal property. The Taxpayer’s business provides mobile lodging and related services (e.g., catering and housekeeping) to oil and gas industry workers by…
For sales and use tax purposes, the Texas Comptroller of Public Accounts issued a motor vehicle rental tax guide for taxpayers who rent motor vehicles in Texas. The guide discusses the taxpayers’ permitting, tax collection, reporting, and records retention responsibilities for tax on gross receipts for vehicles they rent to customers. The guide, among other…
VIRGINIA: A taxpayer was properly subject to Virginia sales and use tax as the purchase of lime and tractors did not qualify for the exemption for the harvesting of forest products for sale under the Virginia law. Virginia law states that machinery, tools, repair parts, fuel, etc. used directly in the harvesting of forest products…
MICHIGAN: A marine vessel management business (taxpayer) was properly subject to Michigan sales and use tax on its purchase of materials used to maintain and operate tug barges because the taxpayer had the ownership over the material. Generally, the use, storage, or consumption of tangible personal property in Michigan is subject to tax. Further, use…
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…
ARKANSAS: A taxpayer’s landscaping services for new construction projects was properly subject to Arkansas sales and use tax assessment as under Arkansas law landscaping services are subject to tax regardless of whether they are performed on residential or commercial property and regardless of whether or not the service is provided in connection with new construction….
Missouri will become the last state with a sales tax to enact economic or “Wayfair” nexus with the passage of S.B. 153/97, imposing a use tax collection requirement for remote sellers. This ends an almost three-year saga started with the landmark Supreme Court South Dakota v. Wayfair Inc. in 2018. Wayfair overturned the “physical presence” requirement for collection of sales tax by remote…
South Carolina: The sale of an optional extended warranty in conjunction with the retail sale of the taxpayer’s medical equipment, is included in gross proceeds of sale for purposes of South Carolina sales tax. However, the sale of an optional extended warranty not in conjunction with the retail sale of equipment, is not taxable. When…
LOUISIANA : A taxpayer was not required to remit Louisiana sales and use tax on its purchase of sodium hydroxide (caustic) because the taxpayer used the caustic as a pollution control device system (PCDS) at its manufacturing facility. Generally, for sales and use tax purposes the term sale at retail does not include the sale…
Texas Exempts Forgiven PPP Loans and Other COVID-19 Related Grants From Franchise Tax Businesses will not have to pay Texas franchise tax on forgiven PPP loan amounts and other COVID-19 related grant proceeds. They may exclude qualifying loan and grant proceeds from total revenue on franchise tax reports originally due on or after January 1,…
