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State Sales and Use Tax Due Dates
Sales and use taxes are predominantly, but not exclusively, state administered taxes and each state has their own set of rules and regulations regarding tax collection and remittance. Businesses with a sufficient connection to these states are legally obligated to collect tax on taxable sales and remit the funds to the state on a regular basis. One of the notable differences among the states that businesses must navigate is the due date for sales tax returns and payments.
Monthly Due Dates
Depending on the amount of sales or tax liability a business has in the state, their sales and use tax due date may be due quarterly, annually, or semi-annually. Most filers will be assigned a monthly due date.
Many states require returns and payments to be filed and submitted on the 20th of the month, however the due dates can range from the 15th to the last day of the month. It is important for businesses to know these deadlines to ensure they follow the law, avoid penalties and interest, and take advantage of timely filer discounts.
The map below shows the monthly due date of sales and use taxes by state. If the due date falls on a weekend or holiday, it is due the next business day, with one exception: Florida. If a sales and use tax due date falls on a weekend or holiday in Florida, it will be due the prior business day.
Monthly Due Dates Map
Quarterly and Annual Due Dates
Most quarterly and annual due dates are the same day of the month as the monthly due date, but there are some exceptions. For example, in North Carolina the monthly due date is the 20th, however the quarterly due date is the last day of the month. Most annual returns and payments are due in January, however the deadline in Michigan and Minnesota is February, New York is March, and Hawaii and Washington is April.
Timely Filer Discount
Many states offer a timely filing discount for returns and payments that are submitted on or before the due date. This discount may also be called a vendor’s compensation credit, collection allowance, collection fee, seller’s discount, retailer’s discount or dealer discount. The discount rates and maximums vary widely. For example, the maximum discount per calendar month is $30 in Florida and $1,500 in Louisiana. Most discounts only apply to sales tax and some states require you file electronically to qualify for the credit. Follow the instructions carefully when applying discounts to your return as each state has its own set of guidelines regarding timely filer discounts.
Wyoming, Texas and Michigan are considered early filing states. In Wyoming, sales and use tax returns are due on the last day of the month, however to qualify for the vendor compensation credit, the business must file and pay by the 15th of the month. Texas offers a prepayment discount. In addition to 0.5% timely filing discount for filing by the 20th, 1.25% can be discounted if the bill is paid by the 15th of the month. Michigan also offers an additional discount if the taxes are paid by the 12th of the month.
The map below shows which states offer timely and early filer discounts.
Timely & Early Filer Discount Map
Tips for the Taxpayer
Most states that levy sales and use taxes require businesses that are registered with that state to file a sales and use tax return even if no taxes have been accrued for the filing period. It is essential for businesses to know when their sales and use tax returns are due, so they are filed on a timely basis. In addition to staying in compliance with state tax laws and taking advantage of timely filer discounts, business will avoid penalties and interest, which can be costly, and limit their exposure to audit inquiries.
Create and calendar to track your sales and use tax obligations on a monthly basis. For most businesses, a simple excel will be sufficient. Create your calendar at the beginning of the year and verify the dates on a monthly basis. Ensure the calendar notates the dates applicable for maximum vendor discounts in addition to final deadlines for filing.
Be sure to check your online filing portals or hard copy mail for notices on changes to filing frequency.
How Can We Help?
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. Allyn tax professionals are well-versed in technical sales tax regulations, procedures, and practices. We use that experience to your advantage by finding sales tax discounts and passing them on to our clients. Our team will ensure that you are in complete compliance with state and local tax law while reducing your tax liability to your fair share and nothing more. Our team files sales tax returns in every state in the US.
It is very simple and easy for a company to engage Allyn in sales and use tax consulting. Just reach out to us, and we will only require minimal data from you to get us started. We minimize the time that you will spend on sales tax issues while we focus on the details and keep you apprised of the progress and findings. Further, we do it all with our recognized dedication to customer service.
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.
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.
Contributor: Shannon McCormick-Grubbs
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, go to www.allynintl.com.