Are you considering doing business or having employees in the state of Texas? Have you had issues with your state tax filing? Join our State and Local Tax team on February 27 to explore some helpful insights into Texas tax filings. This webinar will cover registration, various taxes, starting and closing a business, and other sales tax issues. Learn more and register here.
Are you considering doing business in Washington state or having employees in the state? Have you had issues with your state tax filing? Join our State and Local Tax team on January 26 to explore some helpful insights into Washington tax filings. This webinar will cover registration, various taxes, starting and closing a business, and other sales tax issues. Learn more and register here.
The recently enacted tax reform legislation represents the most significant overhaul of our tax laws in over 30 years. The act contains substantial changes to the taxation of businesses, individuals, multi-national companies, tax-exempt organizations and others. For more information on how this legislation will affect your business, check out our recent article, where we break down hot topics such as the corporate tax rate, pass-through income, and how you can move forward with an informed approach.
Businesses and individuals are trying to determine what tax reform means for them and what to do moving forward. Eide Bailly has created a series of Tax Reform webinars exploring the key provisions, effective dates, how the current plan impacts businesses and individuals, and possible action items and next steps.
Please consider registering for one or all of the webinars by clicking on the topics of interest.
State Considerations: January 19, 2018
Accounting Methods and Cost Recovery Considerations: January 25, 2018
Pass-Through Deductions and Section 199A: February 1, 2018
Impact to Exempt Organizations: February 8, 2018
General Individual and Estate Planning Implications: February 15, 2018
International Considerations: February 22, 2018
Another good resource for tax reform information is our Tax Reform webpage. Here you can find articles, sign up for updates or even contact someone with specific questions.
Please contact your Eide Bailly professional for assistance in figuring out how tax reform impacts your specific situation.
It’s back! The Tax Trends Webinar Series is designed to offer free education and provide information on innovative strategies to save you time and money. Our webinars this year include topics such as state income tax compliance, sales tax considerations, economic nexus, and more. Click here to view all of our Tax Trends sessions and to register.
Today the United States Supreme Court announced it will hear the South Dakota challenge in the 1992 Quill decision. In South Dakota v. Wayfair, the South Dakota Supreme Court ruled the economic nexus standard for sales tax established by the South Dakota legislature as unconstitutional. South Dakota decided that sales tax nexus was established by meeting the minimum threshold of 200 total sales or $100,000 in total South Dakota transactions/sales. In Quill, sales tax nexus required substantial presence which is widely considered to be physical presence.
Contact a member of our state and local tax team to learn more or for assistance with your sales tax questions.
On November 25, 2017 Colorado published a permanent rule in regard to its Notice and Reporting requirement for out-of-state retailers. The permanent rule includes a few minor changes and clarifications from the previously announced requirements.
Summary of Rule
Effective July 1, 2017, Colorado required an out-of-state retailer whose total gross sales into Colorado are $100,000 or more, and who does not collect Colorado sales tax, to give a transactional notice to their Colorado purchasers that sales tax has not been collected and that use tax may be owed. Additionally, if any of their Colorado purchasers purchased more than $500 worth of products in a calendar year, then a Purchase Summary must be mailed to that purchaser and a corresponding Informational Report given to the Colorado Department of Revenue.
Noteworthy Changes with Permanent Rule
- Colorado has recognized that some out-of-state retailers making online sales utilize third party payment processing vendors. Previously, to give a transactional notice, an online retailer would be required to display a transactional notice on the “check out” page. However, for retailers that use a third party payment processor, they may not have control of the content that is on the “check out” page. Therefore, those retailers can now give the transactional notice on the “product page” of their website.
- For retailers that utilize subscription type sales such as a “Jelly of the Month Club,” Colorado has clarified the notice requirements. For subscription type sales, a transactional notice is only required when the purchaser enrolls in the subscription or renews it.
- The maximum penalty limitation given to out-of-state retailers for the first year that they are required to comply, has been removed. Now, if an out-of-state retailer fails to comply with Colorado’s Notice and Reporting rules they will have to show that they “reasonably had no knowledge” of the requirement, to be subject to a maximum penalty.
- Unlike Washington, Colorado does not directly impose a duty to either collect sales tax or comply with their Notice and Reporting requirement on marketplace providers, such as Ebay. But, sellers (with gross sales of $100,000 or more), that utilize online marketplaces, are still required to comply with Colorado’s Notice and Reporting requirement regardless of their use of a marketplace provider platform. However, the permanent rule allows marketplace providers to satisfy the Notice and Reporting requirements on behalf of the sellers.
Colorado has indicated that online retailers must include certain elements in the transactional notice. Sample language would include the following:
[Name of retailer] does not collect Colorado sales or use tax. This purchase is not exempt from Colorado sales or use tax merely because it is made over the internet or by other remote means. The State of Colorado requires purchasers to (A) report all purchases that are taxable in Colorado and for which no tax was collected by the retailer and (B) pay tax on those purchases.
The permanent rule will be effective on January 1, 2018.
If your company makes sales into Colorado without collecting sales tax, contact Eide Bailly’s State and Local Tax Team for assistance with how to comply with Colorado’s Notice and Reporting requirements.