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Sales and Use Tax

California Takes Second Look at Online Sales Tax

Submitted by WVail on Tue, 02/23/2010 - 13:04.

Like many states, California is experiencing a significant revenue shortage. In their attempts to find additional funds anywhere they can, legislators have once again picked up an initiative that has already been vetoed once – internet sales tax.

According to an editorial published in the Orange County Register, the California Senate recently voted 23-15 to require online retailers to collect sales tax on purchases made to California residents. However, the author expects Gov. Arnold Schwarzenegger to veto the legislation. He vetoed a similar bill last year.

British Columbia to Adopt Harmonized Sales Tax

Submitted by whitney.vail on Thu, 08/06/2009 - 15:57.

Beginning in 2010, British Columbia will join other Canadian provinces that have discontinued its own individual Provincial Sales Taxes and instead harmonized with the Canadian Goods and Services Tax.

On July 23, 2009, B.C. Premier Gordon Campbell released a statement describing plans to adopt Harmonized Sales Tax on July 1, 2010. Under the plan, B.C.’s existing 7 percent PST will be combined with the current GST of 5 percent, creating a single 12 percent Harmonized Sales Tax (HST). The 12 percent rate will be the lowest harmonized tax rate in Canada.

IRS Plans to Abolish Cell Phone Tax

Submitted by WVail on Tue, 08/04/2009 - 09:23.

A 20 year-old law requiring organizations to account for the personal use of company cell phones will likely be repealed following a recent public outcry.

The law, passed in 1989, states that use of an employer-provided cell phone for personal calls is taxable income to the employee. Employees are supposed to keep detailed records of their business calls, including the length of the call and a clear description of its business purpose. If there is no documentation, then 100 percent of the cost of the cell phone is treated as income.

Sales and Use Tax Rate Update July 2009

Submitted by WVail on Thu, 07/02/2009 - 15:52.

Local sales and use tax rates are updated frequently. With many U.S. jurisdictions regularly adjusting their tax rates, it is important for businesses to stay informed of these changes as they happen.

The following chart lists recent adjustments made to U.S. sales and use tax rates as of July 1, 2009. Knowing which local governments are charging sales and use taxes and what their rates are will help make sure your payments are correct.

Sales and Use Tax Audit Pain Points

Submitted by WVail on Mon, 06/08/2009 - 20:20.

You would be hard pressed to find an organization that looks forward to sales and use tax audits. While the entire process can be a headache for the companies involved, there are a number of issues that particularly cause headaches for recipients.

An article published in Sales and Use Tax Monitor features interviews with organizations that have recently received sales and use tax audits. Each recipient describes a particular pain point they faced during their audit.

Sales and Use Tax Rate Update June 2009

Submitted by whitney.vail on Thu, 06/04/2009 - 14:00.

Local sales and use tax rates are updated frequently. With many U.S. jurisdictions regularly adjusting their tax rates, it is important for businesses to stay informed of these changes as they happen.

The following chart lists recent adjustments made to U.S. sales and use tax rates as of June 1, 2009. Knowing which local governments are charging sales and use taxes and what their rates are will help make sure your payments are correct.

Sales and Use Tax Rate Update May 2009

Submitted by WVail on Tue, 05/05/2009 - 14:46.

Local sales and use tax rates are updated frequently. With many U.S. jurisdictions regularly adjusting their tax rates, it is important for businesses to stay informed of these changes as they happen.

The following chart lists recent adjustments made to U.S. sales and use tax rates as of May 1, 2009. Knowing which local governments are charging sales and use taxes and what their rates are will help make sure your payments are correct.

Maryland Going After Delinquent Taxes

Submitted by WVail on Tue, 04/14/2009 - 14:31.

The current recession is disrupting businesses across the country in a variety of ways. In addition to lowering revenues, many businesses are finding themselves more frequently on the receiving end of sales tax audits.

Many state governments are facing significant budget shortfalls. Maryland, for example, is in the hole by $1.1 billion, according to a recent article published by the Baltimore Business Journal. As a result, the article states that Maryland’s Controller has increased technology and hired 22 new auditors to pursue delinquent state sales tax.

Sales and Use Tax Rate Update April 2009

Submitted by WVail on Fri, 04/10/2009 - 08:19.

Local sales and use tax rates are updated frequently. With many U.S. jurisdictions regularly adjusting their tax rates, it is important for businesses to stay informed of these changes as they happen.

The following chart lists recent adjustments made to U.S. sales and use tax rates as of April 1, 2009. Knowing which local governments are charging sales and use taxes and what their rates are will help make sure your payments are correct.

The Challenge of Sales Tax and Services

Submitted by whitney.vail on Wed, 03/11/2009 - 10:22.

Sales and use tax are two of the most complex concepts that accounts payable departments handle. While keeping track of the thousands of individual sales tax districts is already difficult when paying taxes on tangible property, the challenge is compounded when the tax is due on a service.