July 1st Sales & Use Tax Law Changes

Law Changes Overview
July 1st marks the effective date for recently enacted legislation in many states; this means that July 1st is an important date for law changes, including sales and use tax-relevant changes. As a courtesy to their subscribers, TTR has compiled the list below of upcoming sales and use tax law changes that are relevant to items covered on the TTR website. This list is not intended to encompass each and every sales and use tax law change (some changes are technical corrections, while other changes do not impact items in any TTR library). As July 1st approaches, they will update, as needed, the taxability of any impacted TTR items on their website (as these items are updated, you will receive regular notifications in your TTR daily or weekly digest). If you have any questions, please feel free to contact your TTR sales professional.

Arkansas Act 1401: Arkansas will exempt certain separately metered utilities used for commercial grain and storage operations.

Arkansas Act 1402: Arkansas will exempt eligible purchases of timber harvesting equipment.

Arkansas Act 1404: Arkansas will allow a partial refund for sales or use tax paid on the purchase of machinery and equipment used to modify, replace, or repair existing manufacturing equipment.

Arkansas Act 1411: Arkansas will reduce the tax rate for sales of natural gas and electricity purchased by qualifying manufacturers and cotton gin operations.

Arkansas Act 1414: Arkansas will exempt the sale of dental appliances to qualifying dental professionals

California Act 93 and SB 90: Effective until July 1, 2022, California will provide a partial exemption for purchases of qualifying tangible personal property for use primarily in manufacturing, processing, refining, fabricating, and recycling tangible personal property.

Georgia HB 900:
Georgia will exempt sales of consumable supplies that are used in manufacturing but do not become a component of the property being manufactured.

Georgia HB 816: Georgia will exclude direct mail postage and delivery charges from its definition of “sales price” so long as the charges are passed on to the purchaser and are separately stated.

Idaho HB 595: Idaho will no longer tax sales of software delivered electronically or by a load and leave method.

Kansas HB 2378: Kansas will expand its manufacturing exemption to include certain types of machinery and equipment used in surface mining activities.

Mississippi SB 2921: Mississippi will have a sales tax holiday for sales of firearms, ammunition, and hunting supplies. The holiday will occur for one weekend each September.

Mississippi HB 0260: Mississippi will remove separately stated finance and carrying charges from the definition of “sales price.” It will also remove charges for engineering services from the taxable contract price for the construction tax.

Mississippi SB 2934: Retail sales of truck-tractors and semitrailers are exempt when they are purchased for use in interstate commerce and will be registered under the International Registration Plan or a similar agreement.

New Mexico
New Mexico SB 88: New Mexico will provide a gross receipts and governmental gross receipts exemption for certain sales and rentals of durable medical equipment and medical supplies.

South Carolina
South Carolina HB 3561: South Carolina will narrow the scope of services that are subject to the 5% tax on “additional guest charges.”

South Dakota
South Dakota HB 1056: South Dakota will change the method used to calculate sales tax on used motor vehicles.

Wisconsin SB 348: Wisconsin will exempt maintenance and repair services performed on aircrafts and aircraft parts.

Wisconsin AB 5: Wisconsin has enacted an exemption for radio and television broadcasters.

Colorado — Sales And Use Tax — Verifying sales tax rates through Revenue Online.

The Colorado Department of Revenue (CDOR) is reminding taxpayers that Colorado has more than 700 sales tax combinations (in addition to the state sales tax rate of 2.9%, counties, cities, and special districts have different rates) and advising them that they can use Revenue Online to find the correct sales tax rates their business should be collecting and reporting. Revenue Online offers three different services for checking the rates: (1) View Local Sales Tax Rates – taxpayers then select a city or county. When taxpayers select a city, the service also discloses the county or counties in which the city is located, and they will see the tax rates and explanations; this service is the online version of publication DR 1002 (Colorado Sales/Use Tax Rates). (2) View Business Location Rates – taxpayers enter their Colorado account number (CAN), and they will see their branch/site information, jurisdictions, and tax rates. (3) Find Local Taxes by Address. When taxpayers rely on these services to determine the tax rates they should collect, they will be “held harmless” regarding the rates they used if they print out the information and keep it in their records. These services are on the front page of Revenue Online, under “Other Services,” and taxpayers do not need to be logged into Revenue Online to use them. The CDOR also reminds taxpayers that they should check for rate changes before January 1 and July 1 each year. (Verify Sales Tax Rates Several Ways Through Revenue Online, Colorado Department of Revenue Taxation Division Weblog, 05/08/2014.)