Sales Tax Changes in 2017

There are numerous tax changes on the horizon with implications affecting many taxpayers.  The following summary briefly outlines a few of the most significant changes.

Tennessee has enacted new economic nexus regulations.  Affected out of state sellers with no physical presence are required to register with the state by March 1, 2017 with the requirement they will begin to collect and remit sales tax by July 1, 2017.  The changes affect remote sellers who regularly engage in the solicitation of Tennessee customers if their Tennessee sales for the prior 12 month period exceed $500,000.

California and New Jersey sales tax rate reductions will become effective January 1, 2017.  New Jersey state sales and use tax rate will change from 7% to 6.875%, while California reduces the rate from 7.5% to 7.25%

Each year the IRS reviews and often adjusts the standard mileage rate to better reflect the cost of operating an automobile.  The IRS has announced the 2017 optional mileage allowance is decreasing from $0.54 to $0.535 per mile for business travel involving owned or leased vehicles. Employers can use this rate to reimburse employees for business mileage.

Florida annual resale certificates for sales and use tax are now available on the Florida Department of Revenue website for taxpayers to download and print using their login credentials. 

In Hardee County, Florida the collection of a 2% tourist development tax is required for those renting or leasing any accommodations for 6 months or less as of January 1, 2017.  The tax relates to a wide range of rentals including motels, condominiums, cottages and RV camps.

The Idaho State Tax Commission has recently announced several changes affecting filers of the Idaho International Fuel Tax Agreement (IFTA).  The changes include a requirement to report split rates, the reporting of off-road nontaxable miles on Form 75 instead of on Form 3150 and the new 2017 IFTA filing due date of December 31.

The Chicago Department of Finance has extended the voluntary disclosure offer through March 31, 2017.  This allows many businesses to remit the amusement tax required on satellite TV services in Chicago, IL.  Disclosure includes relief from all penalties and interest which would be otherwise assessed in an audit.  This would include transactions back to July of 2015.

Many state and local rates will change starting January 1, 2017. For information on a specific jurisdiction, or details regarding other tax changes referenced above please feel free to contact tax@allynintl.com.

Allyn Contributor: Sabrina Miller

Tips for the Taxpayer

Stay up-to-date with state and local tax rates. In an audit, the taxpayer will be responsible for the correct tax rate. Stay current with your state, county, and city legislation. Look for planning opportunities and exemptions that might be applicable to your company.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News and Events at www.allynintl.com.

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Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn files state and local sales and use tax returns in every US taxing jurisdiction. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.