MISSOURI: The Supreme Court of Missouri (Court) affirmed the administrative hearing commission’s (commission’s) decision that a taxpayer was properly subject to Missouri sales and use tax on its rentals of portable toilets because the taxpayer failed to prove that the true object of his rentals was the waste removal service and not the toilet itself….
TN: Notice 21-05 Smokeless Nicotine Products Exempt from Tennessee Tobacco Tax Public Chapter 69 (2021), effective March 31, 2021, amends the definitions of “cigarette” and “tobacco products” and adds a new definition of “smokeless nicotine product” to clarify that smokeless nicotine products are not subject to Tennessee tobacco tax. Tennessee Tobacco Tax Tennessee imposes a…
Sales tax is more complicated than ever, especially in a post-Wayfair world. And what’s worse is that everyone who says they’re simplifying sales tax is still leaving the hardest parts – and the liability – up to you. Don’t let sales tax compliance overwhelm you. Make the right decisions for your business so you can…
INDIANA: The Indiana Department of Revenue (department) discussed the applicability of sales and use tax to a manufacturer’s (taxpayer’s) various purchases of software. Generally, purchases of tangible personal property including computer software are subject to sales tax. However, the purchase of services is exempt from sales tax. In this matter, the taxpayer filed tax refund…
TEXAS: There are three categories of electricity-generating energy: fossil fuels, renewable energy sources and nuclear energy. Fossil fuels, also known as hydrocarbons, include coal, petroleum and natural gas. In 2019, the use of natural gas made up approximately 38 percent of the electricity generated in the U.S., according to an article in the U.S. Energy…
ALASKA: The Alaska Remote Seller Sales Tax Commission has approved its “Remote Seller Sales Tax Code & Common Definitions” that would apply to local municipalities in Alaska that choose to adopt it. The code accommodates the individual rates and exemptions of multiple local jurisdictions within Alaska, with single-level, statewide administration. Under the code, remote sellers and marketplace…
ARKANSAS: A photography service provider (taxpayer) was liable for Arkansas sales and use tax assessed against her because she failed to timely file returns reporting taxable sales. In this matter, the Department of Finance and Administration (department) issued a notice assessing tax, penalty, and interest against the taxpayer as she failed to report taxable sales….
Governments will reexamine a host of state policies coming off an unprecedented year with building budget challenges. Sales tax is one area that will certainly be on the table as legislatures make difficult decisions about taxes and spending. Many states have already made bold moves when it comes to sales tax in 2021. Changes to…
Sales tax obligations regarding software and other technology-related solutions can often come down to location and definition. And the definition is potentially different depending on the location. Four states recently took a closer look at how sales tax applies to technology-related solutions, one of the more confusing industries for complying with sales and use tax requirements….
Data processing is a service performed with a computer using the customer’s data. Entering, storing, manipulating, or retrieving a customer’s data is taxable. But merely using the computer as a tool to help perform a professional service is not taxable. Taxable Services We’ve prepared a partial list of taxable data processing services. This will give…
