Tax Publications

Economic Nexus in Tax Exempt States

Posted on July 12, 2018. Category: Tax Publications

On June 21, 2018, the U.S. Supreme Court issued a decision in South Dakota v. Wayfair abandoning the physical presence standard for state sales and use tax nexus as set by Quill v. North Dakota and National Bellas Hess v. Department of Revenue of III. This decision allows states to impose sales and use tax collection and remittance duties on remote or online sellers who have an economic presence in a state, set by a dollar or transaction threshold for sales delivered into the state. The ruling can create further taxation of e-commerce in all states. One by one, states are... Read More

Supreme Court Decision Overrules Quill and Rules in Favor of South Dakota

Posted on June 21, 2018. Category: Tax Publications

Landmark Case DecidedOn April 17, 2018, the U.S. Supreme Court heard oral arguments in the case of South Dakota v. Wayfair, Inc. et al. on the topic of nexus, physical or economic presence. Today, June 21, 2018, the U.S. Supreme Court has issued its decision in this landmark case that will revolutionize the sales tax world with its impact. The U.S. Supreme Court in a 5-4 decision issued its opinion that the decision of the South Dakota Supreme Court  should be vacated and remanded thereby overturning the cornerstone Quill case which had required a seller to have physical presence... Read More

Sales Tax Nexus: Evolution or Revolution

Posted on June 13, 2018. Category: Tax Publications

Demand Drives DefinitionAs many states continue to deal with budget deficits and seek expansion of the reach of the sales tax as a means of increasing revenue, how states define nexus is evolving. Nexus can be defined as a connection with a state. Typically, we think of this connection as established through people or property physically located within a state. Its impact on state taxes becomes ever more cumbersome and technical as states look to expand the physical definition and morph it into that of an economical one as well. With economic nexus, physical presence is not required; a... Read More

Mississippi Sales and Use Tax - Exempt Purchases by Governmental Entities and Medical Clinics

Posted on June 06, 2018. Category: Tax Publications

Governmental Entities and EmployeesIn May 2018, the Mississippi Department of Revenue released a fact sheet explaining how sales and use tax applies to purchases made by governmental entities and their employees. According to the fact sheet, sales of property, labor, services, or products are exempt from Mississippi sales tax when sold to the United States government, the State of Mississippi and its departments, institutions, counties, and municipalities or departments, or school districts of counties and municipalities.To qualify for the exemption, goods or services must be sold directly to, billed directly to, and paid for directly by the exempt governmental... Read More

Washington Excise Tax Advisory Clarifies Enhanced Delivery Creates Nexus

Posted on May 30, 2018. Category: Tax Publications

While the issue of the nexus physical presence standard awaits the much-anticipated ruling from the Supreme Court in Wayfair versus South Dakota, the general rule of thumb for evaluating your business’ sales tax collection obligations still stands – “People or Property.” If you have employees/representatives operating in a state, or assets, inventory, etc. located in a state, then you are generally considered to have a sufficient connection with that state, or nexus, for sales tax collection purposes. However, as we have seen increasingly over that last few years with waning sales tax revenue due to growth... Read More

Virginia Property Tax Changes in 2018

Posted on March 12, 2018. Category: Tax Publications

The Commonwealth of Virginia has approved several legislative changes relating to property taxes set for a July 1, 2018, effective date. The highlights are listed below and pertain to:Bedford County reassessment Computer equipment used in data centers Single member LLC exemption Merchants’ capital Agricultural productsBedford CountyLocated in the Piedmont region of the Commonwealth of Virginia and seated perfectly at the foothills of the Blue Ridge Mountains, Bedford County is home to abundant natural beauty and historical sites.As a property owner in Bedford County, you should know with legislation effective July 1, 2018, Bedford County is authorized to complete a... Read More

Georgia Taxpayer Bears Burden of Tax-Free Sale

Posted on March 01, 2018. Category: Tax Publications

In a letter ruling (Georgia Letter Ruling No. LR SUT-2017-16, 11/30/2017) released on 02/19/2018, the Georgia Department of Revenue has ruled that the taxpayer will bear the burden of proof when a sale is made without tax charged.  The only exception to this is if the taxpayer receives from the purchaser a properly executed exemption or resale certificate following Georgia’s good faith standard.  In this case, to meet the good faith standard, the customer needed to be engaged in the business of selling repairs or repair parts and the customer needed to have a valid Georgia sales... Read More

Podcast - Tax Chat: It's Accrual World

Posted on February 22, 2018. Category: Tax Publications

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Upcoming Texas Tax Amnesty

Posted on February 09, 2018. Category: Tax Publications

On December 21, 2017, the 36th Texas Comptroller of Public Accounts, Glenn Hegar, announced a Texas Tax Amnesty Program to run from May 1, 2018, through June 29, 2018. The temporary program offers relief to delinquent taxpayers in the form of absolving penalties and interest on tax due for certain taxes.The amnesty applies only to periods before January 1, 2018, and is only applicable to liabilities not previously identified as due by the Texas Comptroller. Also not included are periods currently under audit by the State of Texas, International Fuel Tax Agreement (IFTA) taxes, Public Utility Commission (PUC) of Texas gross receipts assessments, local motor vehicle taxes,... Read More

Tax Cuts and Jobs Act: Impact on Taxpayers

Posted on January 15, 2018. Category: Tax Publications

The most sweeping tax reform proposal in over 30 years was signed into law on December 22, 2017, by President Donald Trump after the House and Senate passed the bill. The Tax Cuts and Jobs Act (the Act) became a reality for US taxpayers beginning with tax years after December 31, 2017. The extensive tax reform of Public Law 115-97 drastically changes the tax arena for individual taxpayers and businesses. Many of the provisions affecting individual taxpayers are only applicable to tax years 2018 through 2025, while corporate provisions of the Act are indefinite and not limited to these years. We will focus on a select... Read More

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