202110.13
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NOMAD: States without statewide sales tax rates

CURRENTLY, the US has five states with no sales tax New Hampshire, Oregon, Montana, Alaska, and Delaware. A popular way to remember which states are with the acronym NOMAD. Although these states do not have a statewide sales tax, they do have other taxes. New Hampshire does not have a sales tax, even in individual municipalities….

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…

202106.23
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South Carolina—Sales and Use Tax: Taxability of Extended Warranties and Inventory Withdrawals Explained

South Carolina: The sale of an optional extended warranty in conjunction with the retail sale of the taxpayer’s medical equipment, is included in gross proceeds of sale for purposes of South Carolina sales tax. However, the sale of an optional extended warranty not in conjunction with the retail sale of equipment, is not taxable. When…

202106.05
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Louisiana—Sales and Use Tax: Taxpayer Entitled to Refund on Purchase of Caustic

LOUISIANA : A taxpayer was not required to remit Louisiana sales and use tax on its purchase of sodium hydroxide (caustic) because the taxpayer used the caustic as a pollution control device system (PCDS) at its manufacturing facility. Generally, for sales and use tax purposes the term sale at retail does not include the sale…