Tax Publications

Puerto Rico Sales Tax Revenue Frozen

Posted on July 14, 2017. Category: Tax Publications

Puerto Rico’s plans to reduce a $123 billion dollar debt comprised of bonds and unfunded pensions has created contentious opposition from two distinct groups of creditors in federal court. What is in debate is the liquidation preference of $400 million dollars in sales tax revenue generated by Puerto Rico and which groups of creditors will be repaid first.Half of Puerto Rico’s sales tax revenues were originally used to fund bonds issued by COFINA, the Puerto Rico Urgent Interest Fund Corporation owned by the commonwealth of Puerto Rico. This entity uses that portion of taxes in repayment of... Read More

Texas: Tax Exempt Employee Services

Posted on July 03, 2017. Category: Tax Publications

Generally, a temporary employee is defined as an individual hired for less than nine months in a full or part-time position. Broadly stated, a ‘temp’ is in an employment situation where the employee is expected to remain in a position for only a set period of time. In Texas, there are specific employment characteristics that exist to qualify one for a sales tax exemption program aimed at services provided by a temporary employee:The service the temporary employee is brought on board to perform is normally carried out by the host employer’s own employees. All supplies... Read More

Maryland Job Creation Tax Credit

Posted on June 13, 2017. Category: Tax Publications

Effective July 1, 2017 certain businesses may be eligible for a job creation tax credit for creating new qualified positions in Maryland.  Eligibility is determined by an organization’s ability to establish or expand a business facility in Maryland during any 24-month period within the scope of the program. The focus of this program is to increase investment in counties with an annual average employment less than 75,000 or a median household income less than two-thirds of the statewide median household income.The current program ends effective January 1, 2020, but has extension potential through the authority of the Maryland General Assembly dependent... Read More

Washington Unclaimed Property Amnesty Expiring

Posted on June 08, 2017. Category: Tax Publications

Unclaimed property is money or intangible property owed to an individual or business, they have yet to take possession of. Property is considered unclaimed after it has been held for a period of time with no owner contact and an effort has been made to locate the owner. Payroll becomes stale-dated after one year and business to business checks vary by state, but typically fall in the 3-5-7 year range. The majority of unclaimed property, some tax professionals argue up to 95%, is due to outstanding checks.If unclaimed property is pursued thoroughly but no resolution can be met, the... Read More

Pennsylvania: Wayfair, Latest Online Retailer to Remit State Sales Tax

Posted on June 06, 2017. Category: Tax Publications

Announced May 24, 2017 the United States’ 16th largest online retailer, Wayfair, an American e-commerce company that sells home goods including furniture and décor, has joined the growing list of online retailers who have begun to remit sales tax to states where they do not have a ‘substantial physical presence.’ Nexus is a hot topic of conversation amongst state law makers due to the growing popularity of online retail versus brick and mortar retail establishments.A generally accepted measurement of retail strength is the holiday season (Thanksgiving-New Year), the busiest time of the year for retailers both... Read More

Tennessee Economic Nexus Coming July 2017

Posted on June 01, 2017. Category: Tax Publications

The Tennessee Department of Revenue has followed the likes of Alabama, Oklahoma, South Dakota, and Vermont by adopting a new sales and use tax rule effective July 1, 2017. Under current nexus statutes, a connection or contact in the form of substantial, frequent or continuous, physical presence within a state establishes nexus. Establishing nexus within a state determines whether an out of state business selling products into a state is liable for collecting sales or use tax on sales into that state.Sellers are required to register with the Tennessee Department of Revenue for sales and use tax purposes by March 1, 2017; effective... Read More

Trump’s Big Tax Plan Outlined

Posted on May 15, 2017. Category: Tax Publications

On April 26, 2017, President Donald Trump presented a one-page outline of his administration’s tax reform plan.  From his campaign trail days, Trump vowed to reform taxes for not only the working class individual but also for corporate America.  Seizing the opportunity, the President is leading what is being labeled as the most significant tax reform since the Reagan era when President Ronald Reagan signed the Tax Reform Act of 1986.  The Administration claims this will be one of the biggest tax cuts in American history. The one-page plan, titled 2017 Tax Reform for Economic Growth and American... Read More

Storing Inventory in Virginia? Your Business Will Now Have Nexus

Posted on March 07, 2017. Category: Tax Publications

Nexus is defined as having a sufficient physical presence in a taxing jurisdiction. It is used to determine whether sellers are required to collect sales tax from purchasers and remit the tax to the jurisdiction. Nexus laws vary by state or local government.Recently the General Assembly of Virginia amended and enacted § 58.1-612 of the Code of Virginia (H.B.2058). The Code defines the term “dealer” and is used to determine nexus in the state. The updated law determines businesses who “own tangible personal property that is for sale located in this Commonwealth... Read More

Jock Tax

Posted on March 07, 2017. Category: Tax Publications

The everyday American will mostly file state income taxes in the states where they reside. Professional athletes have an added liability, the “jock tax.” The jock tax is imposed against visitors to a city or state who earn money in that jurisdiction. Professional athletes are an easy target for this type of tax because their salaries, bonuses, and schedules are all public knowledge. The state can compute and collect the tax without spending a substantial amount of time and effort.The modern jock tax came into effect following the 1991 NBA Finals between the Los Angeles Lakers and the... Read More

Amazon to Expand Sales Tax Collection

Posted on March 07, 2017. Category: Tax Publications

Ten taxing jurisdictions expect to see a sizeable increase in revenue this year as Amazon adds them to the list of states where they will collect sales tax.Since the dawn of online shopping behemoths in the late 90’s, taxing authorities have seen potential tax revenue slip through their fingers as an increasing number of sales have shifted from traditional brick and mortar vendors to sites like While many states have historically been slow in updating their tax laws, the period of tax free online shopping is at the beginning of the end. These ten new additions... Read More

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