202107.21
0

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
0

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
0

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
0

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
0

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
0

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…

202105.19
0

Texas Exempts Forgiven PPP Loans and Other COVID-19 Related Grants From Franchise Tax

Texas Exempts Forgiven PPP Loans and Other COVID-19 Related Grants From Franchise Tax Businesses will not have to pay Texas franchise tax on forgiven PPP loan amounts and other COVID-19 related grant proceeds. They may exclude qualifying loan and grant proceeds from total revenue on franchise tax reports originally due on or after January 1,…

202104.14
0

Natural Gas and Electricity – Residential Use

TEXAS: There are three categories of electricity-generating energy: fossil fuels, renewable energy sources and nuclear energy. Fossil fuels, also known as hydrocarbons, include coal, petroleum and natural gas. In 2019, the use of natural gas made up approximately 38 percent of the electricity generated in the U.S., according to an article in the U.S. Energy…

202103.17
1

Sales Tax Updates for Technology Companies

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….

202103.10
0

Data Processing Services Are Taxable

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…