Combined Sales Tax Rates

Sales tax can be tricky, especially when you are analyzing combined sales tax rates (state rate plus city or local rate).
In some states (Delaware, New Hampshire, and Oregon) you will find no sales tax. In others (Alaska, and Montana) you will find no State sales tax but you may be charged local sales tax.

In many states you can cross the street, and be subjected to a completely different set of sales tax rules.

The highest average combined rates (highest to lowest) are in Tennessee, Arkansas, Louisiana, Washington, and Oklahoma. The lowest are (lowest to highest) Alaska, Hawaii, Maine, and Wisconsin.

The highest combined rate is in Tuba City, Arizona (%12.725), though Homer and Seldovia, AK, and Snowmass, CO have a higher local rate (7.5%)

The list goes on, and the people at the Tax Foundation have done a very good job analyzing this data. To see the article and read more visit:
http://taxfoundation.org/article/state-and-local-sales-tax-rates-midyear-2013

Colorado’s Amazon Win

In 2010 Colorado passed a law requiring internet retailers, whose gross sales exceeded $100,000, to mail annual use tax owed notices to customers that bought over $500 worth of merchandise.

Last year a lower court threw the statute out, claiming that it placed an “undue burden on interstate commerce.”

Yesterday the U.S. Court of Appeals for the 10th Circuit remanded the case back to the lower court, claiming that it had overstepped its authority, and that it had to lift the permanent injunction on the tax. The reason cited was the U.S. Tax Injunction Act, which prevents federal courts from taking on state tax disputes when a state court could handle the matter. It also prohibits Federal lawsuits that could restrain the collection of state taxes.

The suit was brought by the Direct Marketing Association (DMA); a trade association based out of New York.

If the lower court reverses the injunction, then the Amazon act will be back in effect; however the DMA could still try to get an injunction in state court.

Read more:

http://www.bizjournals.com/denver/blog/boosters_bits/2013/08/colorados-amazon-tax-isnt-back.html

http://www.denverpost.com/breakingnews/ci_23904271/colorados-internet-tax-law-scores-win-federal-appeals

No Taxes, No Driving!

New York is considering legislation that would allow the state to suspend drivers license to those who are delinquent on their taxes. It’s estimated that the initiative would raise revenue by $26 million in the first year and $6 million every year after.

Read More:

http://www.accountingtoday.com/news/New-York-Suspend-Driver-Licenses-Tax-Delinquents-67650-1.html?ET=webcpa:e7541:459469a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tpt_080713&taxpro