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.

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.

“Get it in Writing” Says Arkansas

A recent Arkansas Administrative Decision: A taxpayer relied on inaccurate verbal advice from the Arkansas Department of Finance and Admin. This taxpayer had called the Department in reference to the taxability of cleaning and labor services. Taxpayer was told this type of activity is not taxable. The taxpayer was audited and the verbal opinion became the basis of the taxpayer’s appeal. Arkansas stated that the taxpayer failed to obtain a letter of opinion regarding the taxability of said services. Therefore, the auditor’s initial determination stands.

Contact one of our state and local tax professionals for more information on taxability in Arkansas and beyond.

 

Amazon Announces that it will Collect Sales Tax on All Transactions in Pennsylvania

Amazon recently notified sellers that it would begin collecting and remitting sales tax on behalf of third party sellers starting April 1. This is the result of the newly enacted “Marketplace Facilitator Law” which Washington has also enacted. Amazon is also collecting tax on all sales in Washington. Normally, Amazon does not collect sales tax on third party sales that are not “fulfilled by Amazon.” Guidance on whether market place sellers have other compliance or filing requirements is still evolving.

For more information on how this new law may impact your business, contact your state and local tax professional.

Dealership Insights Series – Succession Planning

Eide Bailly is teaming up with the North Dakota Implement Dealers Association and the Northland Independent Automobile Dealers Association to bring you a series of webinars discussing important topics that impact the dealership industry.

There are a lot of things that need to be considered when transitioning a dealership, such as management, ownership, and entity structure. The first session in our Dealership Insights series will outline the top considerations for succession planning as well as review the inherent risks of unclaimed property. Click here to learn more and to register.