New York Revamps Tax Code

The first state to significantly revamp its tax code in response to federal tax reform is New York. To learn more about NY budget bill S. 7509 that was signed by Governor Cuomo on April 12, join the SALT team on April 27 for the New York state presentation. Other states like California may follow New York’s lead to counteract the federal cap on state and local tax deductions. NY established a new payroll tax and charitable funds as workarounds to federal tax reform.

Many other states are working on their tax code as well; contact our state and local tax team to learn more.

Internet Does Not Equal No Tax

An online subscription services provider requested the South Carolina Department of Revenue to rule on the taxability of internet-based platforms on which their customers stream videos, listen to music, and play online games. The taxpayer offers subscription services at a standard monthly fee depending on usage amounts and type of package. South Carolina rules that because the subscriptions or services were online activities they are still subject to tax under the communication business class.

Sales tax rules for online transactions and internet-based companies can be confusing. Contact our state and local tax team to make sure you remain in compliance.

But that’s not my car!

In a recent Arkansas Admin ruling, a taxpayers was held responsible for sales tax on a vehicle that they no longer own. The seller repossessed the taxpayer’s car and it was later found that the car was never registered in Arkansas. The taxpayer insisted that the car was not in their possession for more than 30 days. Unfortunately the State of Arkansas stated that based on the governing statutes the fact that possession of the vehicle was taken creates a tax liability.

Contact our state and local tax team for more information on this and other similar SALT issues.

Upcoming State Tax Update Webinars

Do you do business in Florida, Pennsylvania, or Nevada? If so, you’ll want to check out our upcoming webinars to learn some state tax filing tips and tricks, including starting and closing a business, common sales tax issues, and more.

 

Florida State Tax Update – May 24

Pennsylvania State Tax Update – June 26

North Dakota State Tax Update – July 17

Nevada State Tax Update – August 28

 

See you there!

 

 

Wyoming Approves Tax Collection Fees

Senate Bill 50 was signed into law amending Wyo. Stat. §39-15-107 to allow collection agencies to charge delinquent taxpayers additional fees for their collection efforts. They may now charge the taxpayer up to 20 percent of the value of the tax. This fee will be charged on top of the tax, interest, and other penalties. Those debt collection fees were previously paid for with funds from the Department of Revenue prior to the passage of this new law.

Contact a member of our state and local tax team for more information on similar laws that may be in the works for other states.

U.S. Supreme Court Sets Oral Argument Date for South Dakota v. Wayfair

The U.S. Supreme Court will hear oral arguments in the South Dakota v. Wayfair case on April 17, 2018. The case involves a South Dakota law that requires an out-of-state seller to collect sales tax from South Dakota customers if the seller’s gross revenue from taxable sales delivered in South Dakota exceed $100,000 or the seller makes more than 200 deliveries in the state of South Dakota annually. We will continue to monitor developments in this historic tax case. If you have questions about your responsibilities to collect and remit sales tax, please contact a member of our state and local tax team.

We previously discussed this case here, here, and here.

Texas State Tax Update

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.