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…
NEW YORK – The sales of collagen wound dressings and membranes intended for use during dental surgery were not exempt from New York sales tax as a prosthetic aid because they did not completely or partially replace a missing body part or replace the function of a permanently inoperative or permanently malfunctioning body part. However,…
DELAWARE – The Delaware Division of Revenue (division) issued a memorandum notifying taxpayers that most gross receipts tax, excise tax, and withholding tax returns and payments will be required to be filed electronically as of January 1, 2021. The division listed down the forms to which the mandatory electronic filing requirement will apply. Further, it…
BATON ROUGE – A state sales tax holiday to provide relief for Louisiana residents recovering from hurricanes Laura and Delta, in addition to the COVID-19 public health emergency, will take place Friday, Nov. 20 and Saturday, Nov. 21. Act 16 of the 2020 Second Extraordinary Session of the Louisiana Legislature exempts the first $2,500 of most…
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,…
Texas discusses the sales and use tax treatment of Electronic Cigarettes and Cigarettes. It clarifies that cigarette tax is only due on cigarettes made of tobacco or tobacco mixed with another ingredient and E-cigarettes do not fall within this definition because they do not contain tobacco. However, E-cigarettes are subject to sales and use tax….
