A recent decision from the U.S. Supreme Court will have an impact on many out-of-state sellers, including internet retailers. Join us for a special webinar on Thursday, August 2 to discuss what actions states might take next and what steps your business needs to be considering.
A new ruling from the U.S. Supreme Court will have an impact on out-of-state sellers including internet retailers. The decision rules in favor of South Dakota’s law requiring certain internet sellers with no physical presence in the state to collect South Dakota sales tax. For more information, read our full article here.
States are reviewing and/or adopting new approaching to state taxation in light of the Tax Cuts and Jobs Act. Learn more about the impact, how states are responding and the importance of planning under the new tax landscape in our recent article.
Normally, the sale of a business interest commercially domiciled in Colorado is considered business income, and statutory apportionment rules apply. This would include the gain in the numerator of the apportionment ratio. In a recent case, however, the business that was sold was a distinct operation with its own administration, manufacturing, and distribution departments outside the state. As such, the Dept. of Rev. determined that the gain on this sale should not be sourced to Colorado.
If you are looking to sell your business, contact an Eide Bailly SALT professional to make sure you remain in compliance throughout the transaction process.
A taxpayer that performed solid waste removal was recently assessed for sales tax not collected on that taxable service. The assessment was upheld by an Arkansas Administrative Judge who opined that lack of constructive knowledge of the tax levy or that other similar entities were not collecting the tax was not an adequate defense. Additionally, the Department of Finance and Administration was not estopped from enforcing the tax law because there was no evidence that its employee’s had made statements that the service was not subject to sales tax.
Sales tax can be tricky to navigate, but we’re here to help. Contact an Eide Bailly SALT professional today.
The Arkansas Department of Finance and Administration recently assessed additional income tax on an individual as a result of a denied credit of taxes paid to another state. The taxpayer paid property taxes to another state and claimed them on Form AR1000TC which is used to report income tax paid to another state. The purpose of the form is to avoid double taxing the same income. An administrative court determined that property tax is not an income based tax, so the credit was properly disallowed.
For more information on income tax credits, contact your state and local tax professional.
Membership fees to athletic clubs are typically subject to sales tax as amusement services. However, separately stated charges for workout classes are generally exempt as an instructional service. Recently, a Texas athletic club sold “VIP” memberships that provided access to workout classes as part of the membership but did not separately state the value of the classes. On audit, the athletic club bifurcated the portion of the membership fees attributable to classes, but the Comptroller’s office disallowed the taxpayer’s method because such bifurcation could only be applied on a prospective basis and not on a retrospective basis.