Sales Tax Spotlight: Why Retail Sales Taxes Matter Retail sales taxes account for 32% of state and 13% of local tax collections, totaling about 24% of total state and local revenue. Many policymakers consider sales taxes more pro-growth than income taxes, because they create fewer economic distortions and are directly tied to consumer spending. 🧾…
As the digital economy continues to expand, Texas is updating its tax rules to better reflect the realities of the 21st-century marketplace. The Texas Comptroller’s office recently announced changes to how digital products, such as software, streaming services, and online content, are taxed. What’s Changing? Under the new rules, Texas will impose sales tax on…
Navigating taxes can be challenging, especially with varying regulations across states. In Texas, two primary taxes businesses need to be aware of are the gross receipts and sales tax. Gross Receipts Tax Texas does not impose a traditional corporate income tax. Instead, it has a franchise tax, often referred to as a “margin tax,” which…
Kim Kardashian’s Skims Apparel Company has been held accountable for improper sales tax collection in New Jersey. The company, which is primarily an online retailer, was found to have collected sales tax on tax-exempt clothing items sold to New Jersey consumers from 2019 to 2024. This violation of New Jersey’s Consumer Fraud Act led to…
TX: When it comes to landscaping, lawn, and plant care services in Texas, understanding the intricacies of sales tax is crucial. As a lawn care service provider, you must know your business’s taxable and non-taxable aspects to ensure compliance with state regulations. Taxable and Non-Taxable Services: Any individual or business that offers landscaping, lawn, or plant…
TX: In the ever-evolving landscape of digital consumption, streaming services have become ubiquitous, offering a vast array of entertainment options at our fingertips. However, amidst binge-watching and playlist curating, it’s easy to overlook the tax implications associated with these services, particularly in a state like Texas. As of now, Texas imposes a sales tax on…
TX—Sales & Use Tax: Social Media Management Services Texas has provided sales and use tax guidance on social media management services. The different types of services that are involved in social media management are discussed. Written Content Writing original content such as a blog and posting comments on social media is not taxable. Proofreading and…
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…
The Wayfair decision fundamentally changed how sales tax works in the United States. Nearly seven years later, economic nexus continues to create confusion and compliance challenges for businesses of all sizes. If you sell products or services across state lines, understanding your economic nexus obligations isn’t optional—it’s essential. Economic nexus means you can owe sales…
State revenue departments are stepping up sales tax enforcement, and businesses across the country are receiving audit notices at increasing rates. Whether you operate in one state or fifty, understanding what triggers an audit and how to prepare can make the difference between a routine review and a costly compliance nightmare. The landscape of sales…
