Non-profit, Hand over the sales tax… Says Arkansas

An Arkansas non-profit entity wanted to take donated items and open up a store front in which to sell those items. The revenue generated from this store front was intended to support the non-profit’s rehabilitation center. The Arkansas Department of Finance and Administration Office determined that the revenues from the store front did not meet the definition of a charitable organization and that any and all sales from this location would be taxable.

To learn more, contact a member of our state and local tax team with questions about your sales tax compliance.

Event to Discuss What’s Hot in State and Local Tax in Des Moines, IA

With state and local tax rules constantly changing and a recent ruling from the Supreme Court that will impact out-of-state sellers, there is much to be discussed surrounding state and local tax within the state of Iowa. Join us in Des Moines as we host What’s Hot in State and Local Tax. This free seminar will take place July 17 at the Embassy Club West in West Des Moines. For more details and to register for this event, click here.

Indiana Makes a Texas Pro Golfer Pay

Professional athletes are known to travel all over the United States to participate in events and appear for sponsorship, etc. In 2013, a Texas professional golfer, played in one tournament held in Indiana for a few days. In 2017, Indiana claimed that this TX resident was required to pay Indiana state income tax. After a few battles in court, Indiana won the case. The lesson here is, Indiana is one of many states that will require professional athletes, or others with similar facts, to file income tax returns, regardless of the time spent in that state. And, without a tax return being filed, the statute for making a tax due claim, as was done by Indiana, does not close.

Do you have questions about your filing responsibilities? Contact a member of the Eide Bailly State and Local Tax team.

Watch Out: Colorado Sourcing Rule Modified

Most accounting professionals are aware that sourcing rules can vary state to state. Colorado recently announced that starting August 8, 2018, effective for tax years beginning after 2018, companies will be required to allot certain revenue based on market instead of cost of performance. This means that revenue from sales, rentals, leases, or services from customers in Colorado will now be subject to their Corporate tax. Contact Eide Bailly’s State and Local Tax team with questions to learn more.