202110.06
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TX- City of Farmers Branch Sues TX State Comptroller of Public Accounts

Texas: In September, the City of Farmers Branch joined partner cities in a lawsuit against the Texas Comptroller of Public Accounts to delay, modify or rescind proposed changes to local sales tax collection rules expected to effect October 1, 2021. The 2018 United States Supreme Court decision, South Dakota versus Wayfair, Inc., allowed states to…

202109.29
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CA—Sales & Use Tax: Taxpayer Obligated to Collect Tax Because It Held Certificate of Registration

CA: An out-of-state online retailer’s petition for redetermination of its obligation to collect California sales and use tax was denied because the taxpayer, by applying for and maintaining a valid certificate of registration, assumed a responsibility to collect tax. In this matter, the California Department of Tax and Fee Administration determined that the taxpayer was…

202109.01
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Texas—Sales and Use Tax: Mobile Lodging Provider subject to Sales & Use Tax

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…

202108.25
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Texas—Sales and Use Tax: Guidance on Motor Vehicle Rental Tax Issued

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…

202108.18
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Virginia—Sales and Use Tax: Equipment Not Used Directly in the Harvesting of Forest Products Taxable

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…

202107.21
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Michigan: Sales & Use Tax: Taxpayer Required to Pay Tax on Purchased Materials

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…

202107.14
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Arkansas—Sales and Use Tax: Tax Assessment and Penalty on Purchase of Vehicle Sustained

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…

202107.07
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Arkansas—Sales and Use Tax: Taxpayer’s Landscaping Services for New Construction Properly Subject to Sales Tax

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….

202106.30
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Missouri Inches Toward Economic Nexus

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…