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…


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…


Taxability of Smokeless Nicotine Products

TN: Notice 21-05 Smokeless Nicotine Products Exempt from Tennessee Tobacco Tax Public Chapter 69 (2021), effective March 31, 2021, amends the definitions of “cigarette” and “tobacco products” and adds a new definition of “smokeless nicotine product” to clarify that smokeless nicotine products are not subject to Tennessee tobacco tax. Tennessee Tobacco Tax Tennessee imposes a…


Indiana—Sales and Use Tax: Manufacturer’s Various Purchases of Software

INDIANA: The Indiana Department of Revenue (department) discussed the applicability of sales and use tax to a manufacturer’s (taxpayer’s) various purchases of software. Generally, purchases of tangible personal property including computer software are subject to sales tax. However, the purchase of services is exempt from sales tax. In this matter, the taxpayer filed tax refund…


Arkansas—Sales and Use Tax: Taxpayer Failed to File Returns to Report Taxable Photography Sales; Assessment Affirmed

ARKANSAS: A photography service provider (taxpayer) was liable for Arkansas sales and use tax assessed against her because she failed to timely file returns reporting taxable sales. In this matter, the Department of Finance and Administration (department) issued a notice assessing tax, penalty, and interest against the taxpayer as she failed to report taxable sales….


Iowa—Sales and Use Tax: Utility Company’s Credits for Customer-Generated Electricity Exempt from Tax

IOWA: An electric utility company’s (taxpayer’s) credits to its customers for local electricity generation was exempt from Iowa sales and use tax. Generally, if a trade-in transaction meets the requirements of the relevant law, the amount of credit received from the trade-in is exempt from tax. In this matter, the taxpayer provided electricity to its…


Indiana—Sales and Use Tax: Taxpayer Not Entitled to Casual Sales Exemption on Recreational Vehicle Sales

INDIANA: A recreational vehicle business (taxpayer) was required to remit and collect Indiana sales tax on sales of recreational vehicles (RVs) to its customer because it was not entitled to the casual sales exemption. Generally, Indiana gross retail tax is not imposed on gross receipts from casual sales except for gross receipts from casual sales…


Arkansas—Sales and Use Tax: Voters Approve Constitutional Amendment Making Local Tax Permanent

Arkansas: Voters in Arkansas have approved making a temporary 0.5% sales tax permanent. The revenue is dedicated to state and local transportation. According to the latest data, 45% voted against the measure, while 55% voted for it. The approved measure will amend the Arkansas Constitution to permanently have a 0.5% sales tax for state highways, bridges,…