News & Publications

Tax Alert: Important Updates and Changes in February 2023

Monday 02/06/2023

There’s No Bad Pictures – Just Taxable Ones

Photography and photo finishing services became subject to sales and use tax January 1st, 2023, in Kentucky. In order to educate the public on this matter, the Kentucky Department of Revenue has issued frequently asked questions and answers. The services subject to tax include, “the taking, developing, or printing of an original photograph, or image editing including shadow removal, tone adjustments, vertical and horizontal alignment and cropping, composite image creation, formatting, watermarking printing, and delivery of an original photograph in the form of tangible personal property, digital property, or other media.” There are a few exemptions to tax, such as photography and photo finishing services necessary for medical or dental health. Resale certificates may not be issued for equipment or supplies used in the production of taxable professional services. However, resale certificates may be issued for property that is to be resold to an end customer. To learn more, read the FAQ here.

State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Wednesday 02/08/2023

Working On My Fitness – Kentucky Issues New Taxability Rules on Fitness Services

Recently, the Kentucky Department of Revenue has enacted new legislation making recreation and fitness services taxable, as of January 1, 2023. Newly taxable recreation and fitness services are to include leisure, recreational, or athletic instructional services that have a physical activity component. These can range from sports leagues with coaching, golf lessons, riding lessons, yoga instruction, spinning classes, swimming lessons, skating lessons, martial arts classes, and more. There are a few instructional and recreational services that will still not be taxable like dance lessons, art lessons, pilot training, vocational training, and such. However, tuition for camps of all types and categories are taxable if there is a recreational component included that comprises around 10% or more of the scheduled activities. This means that situations like an overnight music camp, that would not normally be seen as taxable, can and will be taxed if it has a recreational activity component that consists of 10% or more of the camp’s activities.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Monday 2/13/2023

Illinois amends retailers' occupation tax nexus regulations.

The Illinois Department of Revenue amended regulations (86 Ill. Adm. Code §§ 130.101, 130.110, 130.225 and 130.1915, effective 01/24/2023), to conform Retailers' Occupation Tax regulations with the Leveling the Playing Field for Illinois Retail Act. The occasional sales provisions are amended to specify that no sales made over a marketplace are occasional sales. Drop shipment regulations are amended to clarify that out-of-state purchasers without nexus who use drop shipment situations now include remote retailers who do not meet a tax remittance threshold and are not required to remit Retailers' Occupation Tax. Additionally, the regulations add provisions on auctioneers as marketplace facilitators.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Tuesday 2/14/2023

Welcome to Hotel Tax – DC’s Temporary Rate Increase on Transient Accommodations

The D.C. Office of Tax and Revenue (OTR) has issued a notice advising taxpayers that the District passed legislation increasing the sales and use tax rate on gross receipts from the sale of, or charges for, rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which lodgings are regularly furnished in the District. The total sales and use tax rate imposed is increased to 15.95% from 14.95% during the time period from April 1, 2023, through March 30, 2027.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Wednesday 02/152023

NY- Adequate notice given in tax foreclosure sale.

The New York Court of Appeals affirmed the Fourth Department's determination that the County of Ontario provided legally adequate notice of a tax foreclosure proceeding against the subject property (land improved with a restaurant) for unpaid property taxes. The Court of Appeals first observed that a tax foreclosure proceeding is "in-rem" against taxable real property and not an action "in personam”.In this instance, after mailing notice to the publicly listed owners, posting and filing the notice, and publicizing the notice in the press of the in-rem tax foreclosure proceeding, the County Treasurer learned one of the property owners died. The County Treasurer then personally contacted the restaurant (by phone and then in person) to inform a person in charge of the pending foreclosure proceeding. The Court of Appeals concluded that the county "made an adequate attempt at service," and as such, due process requirements were satisfied.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Monday 2/20/2023

Retail sales of all-terrain vehicles (ATVs), side-by-side vehicles or utility task vehicles (UTVs) are eligible for the partial sales tax exemption, that caps the total amount of sales tax to three hundred dollars for each sale, as affirmed by the South Carolina Court of Appeals. ATVs and UTVs are entitled to this exemption as they are included in the dictionary definition of a motor vehicle and the exemption is not restricted to motor vehicles used on highways.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Tuesday 2/21/2023

Tax the Tech – New York Management System Fees

An administrative law judge (ALJ) has upheld the Division of Taxation's determination that the taxpayer's fees for its vendor management system (VMS) that assists its customers with their contingent labor force, are taxable sales of pre-written software. The taxpayer's customers pay a fee for the VMS service that includes a license to use its software technology, the ALJ observed is primarily pre-written and "completely intertwined" with the taxpayer's service. The taxpayer's contracts stress that the entire bundled package of VMS services is “a web based application delivered through a software-as-a-service model."

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Wednesday 2/22/2023

Alabama - Saraland lodgings tax increase.

The City of Saraland has informed the Alabama Department of Revenue that its lodgings tax rate will increase to 10% from 8%, effective March 1, 2023. Lodgings offered to transients outside the corporate limits of the city but within the police jurisdiction are subject to tax at one-half of the stated rate. Saraland lodgings taxes may be remitted online through My Alabama Taxes (MAT).

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

Thursday, February 23, 2023

Start Your Engines – 2023 Motor Vehicle Property Tax Rates

The Kentucky Department of Revenue has issued the motor vehicle property tax rates for each county for 2022 and 2023. To learn more, visit the Kentucky Department of Revenue website and find the Motor Vehicle Tax Rate Book 2023.

State-specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of your indirect taxes, ask an expert here: https://lnkd.in/eMTnUw3y

 

If you have any specific questions regarding one of the news updates, ask a tax expert here


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 and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.

 

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