AR: The taxpayer’s biennial consignment sales of used children’s clothing would be subject to Arkansas sales and use tax because the taxpayer was an established business making taxable sales. Taxpayers are entering a typical consignment deal with individuals looking to sell used or second-hand children’s clothing. The Department of Treasury and Administration stated that the…
California: Boutique hotel owners (taxpayers) were eligible for refunds of penalties imposed by the City and County of San Francisco for failing to file tax returns on time and failing to pay certain hotel taxes because they demonstrated that they had exercised reasonable care. The taxpayers relied on an employee to file, repay and make…
Kentucky has expanded its list of services subject to sales and use tax to include: photography and photo finishing services; marketing services; telemarketing services; public opinion and research polling services; lobbying services; executive employee recruitment services; Web site design and development services; Web site hosting services; facsimile transmission services; private mailroom services, including: presorting mail…
Maryland – New Sales & Use Tax Exemptions Effective Summer 2022 Diabetic Care Items Exempt Diabetic care items are exempt from Maryland sales and use tax effective July 1, 2022. The following items will be exempt: insulin; glucose tablets, drinks, and gels; blood and urine ketone meters and supplies; insulin pumps, infusion sets, pump reservoirs…
AL: The Alabama Department of Revenue appeal against a Circuit Court judgment was dismissed for lack of jurisdiction because the judgment was not final. In that matter, the department found that the taxpayer, a furniture store operator, paid no sales or use tax on its furniture sales and shipping fees collected on shipments to various…
Arkansas Sales & Use Tax: A poultry farmer (taxpayer) was rightly denied a commercial farming exemption when purchasing a poultry house blower. The taxpayer could not prove that the chicken coup fan was used directly to produce food or fiber. At the time of purchase, an exemption certificate was signed in the taxpayer’s name, certifying…
MA: A Massachusetts auto dealer who provided customers with a complimentary loaner vehicle while their vehicle was being repaired owed sales and use tax on the vehicles. The vehicles were not exempt as sales for resale as they were removed from inventory and used by the dealer. SOURCE
CA: An individual was held liable for the unpaid California sales and use tax of a defunct limited liability company (LLC) because he was responsible for the LLC’s tax affairs during the years in question. In this case, the California Department of Taxes and Fees Administration (CDTFA) issued a declaratory judgment against the LLC to…
ALABAMA: A convenience store operator was assessed properly under the Alabama sales and use tax law on its retail sales. The taxpayer failed to maintain adequate books and records and didn’t correctly report its sales. The taxpayer did not provide thorough information about its purchases, and, as a result, the Alabama Department of Revenue determined…
TX – The Comptroller of Public Accounts issued a newsletter providing general information about Texas taxes for sales and use tax purposes. The publication discusses various tax issues, including the following: The estimated average rate of local sales and use taxes imposed in Texas during the preceding state fiscal year ending August 2021 is 1.75%;…
