The Sales Tax Connection

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Archive for the ‘State Issues’ Category

2010 Sales Tax Holidays around the U.S.

Posted by salestax on March 5, 2010

It’s about that time of year, when states are either having or implementing future sales tax holidays. I’ll, once again, try to track them and keep this list updated for changes/additions for 2010.

Alabama – August 6-8. Clothes ≤$100 ea. Computers/SW/Peripherals ≤$750 ea. School supplies/materials ≤$50 ea.; Books (non-commercial) ≤$30 ea.

Connecticut – August 15-21 Clothes/Shoes <$300 ea.

D.C. – August 7-15 & Nov. 26-Dec. 5. Clothes/Shoes/Accessories/School Supplies ≤$100 ea.

IowaAugust 6-7. Clothes/Shoes <$100 ea.

Louisiana – May 29-30. Hurricane Preparedness Items totaling ≤$1500.

August 6-7. Non-commercial purchases of TPP (free for all) totaling ≤$2500. Exempt from state-level sales tax only.

September 3-5. Guns/Hunting supplies (non-commercial).

Mississippi – July 30-31. Clothes/Shoes <$100 ea.

MissouriApril 19-25. Green Holiday – Energy Star qualified new appliances ≤$1500 ea.  If appliance is over $1500, the portion over $1500 will be subject to tax.  Not all local tax jurisdictions will participate, so you may be charged local sales tax on the entire purchase. 

August 6-8. Clothing ≤$100 ea. School Supplies ≤$50 total. SW ≤$350. Computers/Peripherals ≤$3500. May not apply to local sales taxes. Read the rest of this entry »

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Posted in General Tax Information, State Issues | Tagged: , , , , , , , , , | 8 Comments »

CA – Small businesses don’t have to pay over sales tax?? INFURIATING!!!

Posted by salestax on March 19, 2009

Perhaps this is why California is in the dire straits that it is.  Supposedly, there is a CA gov’t initiative to ease business pressures of remitting sales taxes collected on a timely basis?  I don’t care what the economy is doing.  If you collect sales tax from me, you better damn remit it.  What if you were a small business owner in Oregon?  And you didn’t have that money sitting in your account… who would you rob to pay your bills then?  

So, they’re taking in customer’s money as an agent/trustee of the state when customers purchase goods.  Their simple responsibility is to collect that money, keep it, earn interest on it and then remit it to the state on a regular basis (Monthly, Quarterly, etc.).  But, instead, small business owners are choosing to pay business expenses rather than turn over OTHER PEOPLE’S MONEY to the state of California?  Excuse me…isn’t that, um, called stealing? 

1.       As a consumer, I’d rather you just not charge me sales tax from the start.  I’d like to invest that extra money for my family, my healthcare, my potential unemployment, my bills.  I’ve given you this money to give to the state, so that it might be able to indirectly help me or you in these crunching times.  If you just don’t charge me, then you just risk being audited and can pay it when that time comes.  Right… it’ll be in the future, which is when you want to pay it anyway.  UGH!!! Read the rest of this entry »

Posted in General Tax Information, State Issues | 4 Comments »

2009 Sales Tax Holidays:

Posted by salestax on March 5, 2009

I’ll once again attempt to keep up with the sales tax holidays occurring around the U.S. this year.  Check back for updates.  There are several states that had holidays last year that haven’t introduced them again for this year.  But, in these economic times, getting people to buy is status quo, so I would expect more as the year progresses. 

And, don’t forget about the economic stimulus and the sales tax exemption (write off) on buying a new vehicle (or motorcycle or motorhome) by the end of 2009.  You can write off the sales tax on your 2009 income tax return, even if you don’t itemize.  But, as reported earlier, the interest – if you take out a loan – didn’t make it to the final package. Read the rest of this entry »

Posted in General Tax Information, State Issues | Tagged: , | 2 Comments »

WA – Exemption for green vehicles

Posted by salestax on February 11, 2009

This is a sales tax exemption for those buying green cars from 1/1/09-12/31/2010.  They can be those using alternative fuel or hybrids with EPA 40MPG. 

Also, if you are buying a car that’s not green, but you are having it converted to green as part of the sale, and it meets one of the conditions of being alternative fuel or hybrid w/40MPGs, then you get the exemption too.

Get more details here.

Posted in General Tax Information, State Issues | Leave a Comment »

PA Businesses w/Refrigeration Cases – Planning Opportunity

Posted by salestax on February 11, 2009

PA recently put forth a Legal Letter Ruling regarding the sale, service and installation of Commercial Regrigeration Equipment. 

Synopsis: 

If you’re a purchaser of this type of equipment for use in your business, if it is installed and integrated into a central cooling system, then you can buy it without sales tax.  However, if you’re buying a unit that has a self-contained cooler and doesn’t need to be hooked up to anything externally to keep it cool, then it’s taxable.

Installers/Repair persons:  If working on the self-contained coolers, then you can charge sales tax on your service to install and repair.  However, if you break out the labor costs, then only the parts are taxable.  Alternatively, if you’re working on the kind that need external hook-ups to keep it cool, then you must pay tax on all of your parts and not charge the customer any extra sales tax on their invoice.  BUT, for cash flow purposes, buy all of your repair parts exempt from sales tax for resale and then remit tax on the cost of the items used for the repair/installation on the latter.

Posted in General Tax Information, State Issues | Leave a Comment »

SD wants to increase sales tax rate (temporarily)

Posted by salestax on February 4, 2009

Well, let’s see… if SD puts on the books to raise the sales tax rate temporarily according to this article:

http://www.ksfy.com/news/local/38902309.html

what will stop them from passing a bill to extend the bill further than Dec 09 when that date draws near and eventually making it permanent.

I’ve seen this trick to many times. It’s one reason why I belive legislatures should not be able to increase taxes based on their votes alone. It should first have to pass state legislature voting and then be passed to the people.

Posted in General Tax Information, State Issues | Leave a Comment »

MO plans “green tax holiday”, but not all localities follow suit.

Posted by salestax on February 4, 2009

http://www.columbiamissourian.com/stories/2009/02/02/no-appliance-holiday-columbia/

April 19-25th consumers can purchase energy efficiaent appliances without the state sales tax. But, if you buy them in Boone county or the City of Columbia, be prepared to still pay their local taxes (1.125% Boone Co and 2% Columbia City).

Do they think they’re shooting theirselves in the foot. If I were in this area, I’d simply go outside the city/county and buy my appliances elsewhere. Missouri is an origin state when taxes are calculated. So buy it from a city/county that is following with the holiday.

Posted in General Tax Information, State Issues | Leave a Comment »

WI going to give “Streamlined” another shot

Posted by salestax on February 4, 2009

http://www.forbes.com/feeds/ap/2009/02/03/ap6000962.html

They’re more postiive this time since the legislature moved from “R” to “D” this past November. I had never thought of it that way, there seems to be a good mix of red and blue states getting into this initiative.

Posted in General Tax Information, State Issues | Leave a Comment »

ND Considers Exemption of sales tax on clothing

Posted by salestax on February 4, 2009

http://www.forbes.com/feeds/ap/2009/02/03/ap6000962.html

Posted in General Tax Information, State Issues | Leave a Comment »

NY Fraud Cases – in case you’re interested.

Posted by salestax on February 3, 2009

As mentioned previously, it’s daunting to keep up with all of the prosecution of the fraud cases in NY.  But just in case you’re interested in knowing who and what, the following are links to the press realeases of those sales tax fraud caes in NY over the last 6 months:

Four pizzeria owners in Erie and Niagara Counties underreported taxable sales by $2.5M

Manhattan hotel owner admitted stealing $1,387,743 in sales taxes that he collected from customers but failed to remit to the state.

Brooklyn used-car dealer,who operates a dealership at 1676 East New York Ave., failed to pay sales taxes on any sale since he opened the business in 1999, despite collecting the tax from customers.

Owner of a used car dealership in Rochester was sentenced to 46 consecutive Sundays in a Monroe County jail work-release program for filing fraudulent sales tax returns.

Five Long Island business owners – two in Nassau County and three in Suffolk County – were recently charged in separate cases for failing to file sales tax returns.

Four western New York business owners – three in Monroe County and one in Wayne County – were recently charged in separate cases for failing to file sales tax returns.

Hamburg, N.Y., used car salesman pled guilty to a felony tax charge for collecting and failing to remit to the state over $100,000 in sales taxes he collected from customers during a two-year period.

And, I’m not the only one who’s noticing:

A lengthy article in the November 26th edition of The Wall Street Journal, headlined New York Sting Nabs Tax Preparers, highlights a Tax Department undercover operation which exposed significant fraud among a group of randomly selected professional tax preparers.

Posted in General Tax Information, State Issues | Leave a Comment »