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…
South Carolina: The South Carolina Department of Revenue issued an information letter revising the effective date for the sales and use taxability of tobacco company payments to retailers, commonly known as buydowns, to July 1, 2021. In a previous Revenue Ruling (20-3), the department had stated that taxability of buydowns would be effective for retail…
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…
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….
Georgia: In a letter ruling, the Georgia Department of Revenue (department) discussed sales and use tax treatment of a retail seller’s sale of hemp extract dietary supplements. The taxpayer explained that it was rolling out five new dietary supplement products containing hemp extracts. The taxpayer sold those products through distributors, who paid a fee when…
D.C. Attorney General Karl A. Racine has filed a lawsuit against the grocery delivery service Instacart, alleging it has failed to pay hundreds of thousands of dollars in D.C. sales tax and deceived local consumers into believing extra service fees were actually tips for workers. Instacart, which operates nationwide and relies on gig economy workers,…
We were celebrating 20 years of success. Follow us as we take a trip down DDH Memory Lane and review some highlights! 2017 marked a milestone year at Davis Davis & Harmon LLC – Sales Tax Expert. Our firm and leadership team accomplished so much! Top 3 Business Highlights of 2017 DFWMSDC names Davis and…
