Taxability is an area that if you get wrong can lead to large amounts of taxes owed, penalties, and interest. Business and their trusted advisors sometimes get this wrong. One area of trouble, in particular, is membership fees.
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By: Briana Wagner
One of the most frequently asked questions we receive here at STM is “When should I register for sales tax?” The answer is one we use quite often - it depends! This is a very specific question that requires a lot of information to fully answer. You not only need to understand sales tax concepts but also your business and/or personal risk tolerance. It is essential to understand and evaluate these things so that you can answer this question for yourself and ensure you are appropriately compliant with the states.
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By: Michael Fleming
One of the biggest problems we continuously see is companies choosing to not collect tax. Ultimately it doesn't matter what you believe as to whether your products or services are taxable, but what the state believes, especially when the courts would likely back the state.
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By: Michael J. Fleming, CMI
The taxability of the sale and installation of signs is one of the toughest industries to get correct. The rules for contractors, in general, are complicated, especially when installing tangible personal property (TPP) into real property.
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By: Briana Wagner
Sales tax is extremely complicated and can cause a whirlwind of trouble for sellers and businesses. One mistake can cost hundreds of thousands of dollars in penalties and interest. Because of this, sales tax audits can be very stressful. However, understanding audits and taking proactive steps toward sales tax compliance can help eliminate many issues that may arise.
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By: Briana Wagner
All retailers registered for sales tax in the state of Illinois should be aware of Public Act 102-0700, which was passed last month. According to P.A. 102-0700, Illinois is suspending sales and use tax on specific grocery items from July 1, 2022, to June 30, 2023. What does this mean for you and your business? Let’s find out.
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By: Briana Wagner
Did Will Smith really slap Chris Rock, or was it all a publicity stunt? That was the major question following the Oscars last month. However, we had another question on our minds. When events like the Oscars, the Grammys, or the Emmys take place, many celebrities leave with gift bags worth thousands of dollars. These bags can include treats such as plastic surgery, luxurious getaways, and expensive skincare products. In fact, this year some celebrities left the Oscars with a plot of land in Scotland! All of this had us thinking, what are the tax requirements associated with gift bags?
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By: Jayci Trujillo
Both sales and income tax are not necessarily at the forefront of people's minds when they hear March Madness. However, the annual tournament brings in more than 600 million dollars a year which can result in a lot of taxes. There are many different instances and situations in which people can create unexpected nexus, today we will be elaborating on a few sales and income tax implications.
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By: Priya Sorathia
With the holidays coming up, who wouldn’t mind being gifted a $10,000 piece of jewelry? However, buyers beware! In many states, not only does the purchaser of luxury goods need to pay the normal sales tax, but also a luxury tax. The luxury tax is not just imposed on jewelry, but also on expensive items such as expensive furs, boats, yachts, private jet planes, etc.
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By: Ellie Moffat
One of the most common things we are asked about at Sales Tax and More is taxability. Taxability almost always comes down to super-specific factors, and each state has their own ideas on what is and is not taxable. On top of this, there are constant changes in taxability and states are continuously clarifying these specific factors.
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By: Priya Sorathia
Understanding taxability can be confusing! Unfortunately, it’s rare to have a yes or no answer to a taxability question, especially when it comes to digital projects and services.
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By: Ellie Moffat
Seemingly every day we hear of states announcing devastating revenue shortfalls, and in turn budget cuts, changes in taxability, lowering economic thresholds, and anything that will help them make up for their losses and take care of its residents and businesses.
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By: Michael J. Fleming, CMI
The world changed on June 21, 2018. This is the day the US Supreme Court said they made a mistake back in 1967. They said that they never should have introduced physical presence as a requirement for states to require sales tax collection from out of state companies. They said this in the Wayfair case and then went on to overturn the two landmark cases regarding physical presence: Quill and National Bellas Hess. (South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018); National Bellas Hess v. Department of Revenue, 386 U.S. 753 (1967; Quill Corp. v. North Dakota (91-0194), 504 U.S. 298 (1992))
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