Taxcient's Sales and Use Tax Blog

Taxpayers Can Save up to 80% of Penalty and Interest in New York PAID Program

taxcient — Sun, 31 Jan 2010 22:22:46 +0000

The Penalty and Interest Discount (PAID) program gives taxpayers with older unpaid bills the chance to save up to 80% of the penalty and interest they owe.

You can save:

80% of accrued penalty and interest on unpaid bills issued on or before December 31, 2003
50% of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, 2006.

To take advantage of the program’s savings, you must make all payments by March 15, 2010. If you don’t pay in full by that date:

Your opportunity for these savings will be lost forever
Any unpaid tax debts will continue to accrue interest at the full statutory rate.

We’re mailing invitations to taxpayers eligible for PAID this month. Eligible taxpayers who don’t receive a notice because we can’t reach them through the mail can still participate. See our Web site to learn how to get PAID up.

Learn more.

www.taxcient.com – The Science of Tax

California Provides Guidance on Resale Certificate Usage

taxcient — Sun, 31 Jan 2010 22:07:18 +0000

The State Board of Equalization (SBE) has provided guidance on the use of resale certificates. Retailers can accept resale certificates without collecting tax from customers that purchased the tangible personal property for resale or that will become a physical part of an item that they sell. View California SBE Information Publication 103.

www.taxcient.com – The Science of Tax

Wisconsin Updates its Sales And Use Tax Guide

taxcient — Thu, 31 Dec 2009 00:07:36 +0000

The Department of Revenue has updated it sales and use tax guide with a published revision date of September 30, 2009. The guide reflects the law as of September 30, 2009, prior to the changes made to conform to the Streamlined Sales and Use Tax Agreement, which are effective October 1, 2009. View Wisconsin Dept. Rev. Tax Publication 201

www.taxcient.com– The Science of Tax

Virginia Issues New Rules On Goods Shipped Out of State

taxcient — Wed, 30 Dec 2009 23:19:11 +0000

The Virginia Department of Taxation has ruled that goods shipped by a taxpayer to its customers’ distribution centers prior to their transport out of state are subject to Virginia sales and use tax. In addition, the customers’ possession and storage of goods in Virginia constitutes “use” and the delivery of these goods outside of Virginia does not exempt the sale of these goods from tax.

www.taxcient.com– The Science of Tax

Georgia Bulletin – Recovering Sales and Use Tax Erroneously Paid On Qualifying Manufacturing Machinery and Equipment

taxcient — Tue, 01 Dec 2009 00:22:58 +0000

The Georgia Department of Revenue has released a bulletin on how taxpayers may recover sales and use taxes erroneously paid on qualifying exempt purchases of manufacturing machinery and equipment made during the period of January 1, 2009 and December 31, 2009. To recover taxes erroneously paid, a taxpayer can either take a deduction on a current period sales and use tax return or file a refund claim with the Department. Informational Bulletin SUT 2009-10-28.

www.taxcient.com – The Science of Tax

Maine Sales, Use, and Service Provider Account Quarterly Electronic Filing Mandate

taxcient — Tue, 01 Dec 2009 00:10:51 +0000

Effective January 1, 2010 all sales, use and service provider accounts reporting on a quarterly basis will be required to file their returns electronically. View notice.

www.taxcient.com – The Science of Tax

Wisconsin Release Streamlined Sales and Use Tax Taxability Matrix

taxcient — Tue, 01 Dec 2009 00:00:27 +0000

The Wisconsin Department of Revenue has released its Streamlined Sales and Use Tax Agreement taxability matrix. The matrix lists products and services and whether they are taxable.

www.taxcient.com – The Science of Tax

Rhode Island Sales and Use Tax Electronic Payment Mandate

taxcient — Mon, 30 Nov 2009 23:44:51 +0000

Due to the recent legislative changes to RIGL 44-30-71 there is a new electronic payment requirement. Beginning January 1, 2010, any person required to withhold and remit tax under this section with ten (10) or more employees as well as any person required to collect and remit sales and use tax to the state of Rhode Island who had an average monthly sales and use tax liability of two hundred dollars ($200) or more per month must make the payments by electronic funds transfer or other electronic means defined by the tax administrator.

In the case of failure of any person required to deposit taxes by electronic funds transfer or other electronic means defined by the tax administrator, unless such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax required to have been electronically transferred five percent (5%) of the amount or five hundred dollars ($500) per required payment, whichever is less.

The tax administrator is authorized to waive the electronic filing requirement in a given year for a person who can show that filing electronically will cause undue hardship.

To facilitate this requirement the Division of Taxation allows ACH debit, ACH credit and credit card payments.

For questions regarding electronic payments, call (401) 574-8901 or (401) 574-8732.

www.taxcient.com – The Science of Tax

North Carolina State and Local Rate Change Effective October 1, 2009

taxcient — Mon, 30 Nov 2009 21:50:26 +0000

Effective October 1, 2009, the general State rate of tax increases from 5.5% to 5.75%. The local rate decreases from 2.25% to 2% in all counties except Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry where the county rate decreases from 2.5% to 2.25%. Mecklenburg County continues to impose an additional 0.5% Transit rate. The third one-half cent local tax previously reduced to a quarter cent (0.25%) under Article 44 will decrease to zero. The combined State and local rate will continue to be 7.75% in ninety-one counties, 8% in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry Counties and 8.25% in Mecklenburg County. These changes occur as the State continues assuming Medicaid responsibilities for the counties.

The following resources provide additional information about the rate changes:

www.taxcient.com – The Science of Tax

California Clarifies Tax Treatment of Internet Sales

taxcient — Fri, 30 Oct 2009 17:47:39 +0000

The State Board of Equalization (SBE) has amended Publication 109 on “Internet Sales,” clarifying the tax treatment of sales made over the Internet by both in-state and out-of-state businesses.

Businesses physically located in California

If your business is located in California, your Internet sales of physical products are generally taxable unless they qualify for a specific tax exemption or exclusion (view Publication 109). For sales tax purposes, Internet sales are treated just like sales you make at retail stores or other outlets, through sales representatives, over the telephone, or by mail order. To obtain a seller’s permit complete and file a BOE-400-SPA, California Seller’s Permit Application for Individuals/Partnerships/ Corporations/Organizations (Regular or Temporary), with the Board of Equalization (BOE).

Businesses located outside of California

If your business is located outside of California, your sales of physical products delivered to California locations are generally subject to the state’s use tax. While your customers are responsible for the use tax, you must collect it from them and pay it to us if you:

• Have a permanent or temporary business location in California, including a warehouse, sales room, or office; or you

• Have any kind of representative or agent in the state, even temporarily, who makes sales, takes orders, installs or assembles merchandise, or makes deliveries for you.

If either of the conditions above applies to your operations, you are required to register with the BOE and obtain a Certificate of Registration—Use Tax Account. Please complete and file a BOE-400-CSC, Certificate of Registration -Use Tax Application, with the BOE. If you do not register and collect the use tax, your customers must pay the tax directly to us (see “Voluntary collection in Publication 109).

Special case—leases: Even if the criteria above do not apply to your business, generally, you must register, collect, and pay use tax on payments you receive from the lease of merchandise including vehicles, vessels and aircraft, located in California. This is true whether you negotiate the lease over the Internet or by any other means.

The use tax rate is the same as the sales tax rate for any given California location; please see publication 71, California City and County Sales and Use Tax Rates. Transactions that are exempt from sales tax are usually exempt from use tax. View More Information.