Posted on September 22, 2021
Capital Equipment Exemption in Minnesota
The Minnesota Department of Revenue has updated a fact sheet explaining the state's capital equipment exemption clarifying that purchasing agent agreements are not required for contractors to purchase capital equipment materials exempt from tax.
Persons who buy or lease capital equipment for use in Minnesota are eligible for an exemption or a refund of state and local sales or use tax paid.
Exemption certificates can be difficult to keep track of, especially if your business is making multi-state purchases that should be tax-free.
Utah’s Marketplace Nexus
The Utah State Tax Commission has recently issued a publication clarifying sales and use tax information for marketplace sellers and marketplace facilitators. Current Utah law states that a marketplace facilitator is subject to Utah sales tax if in the current or previous calendar year they sell or facilitate the sale of products that result in gross revenues of more than $100,000, or 200 or more separate transactions.
Arizona DOR Provides Guidance for Automotive Dealers
The Arizona Department of Revenue has issued a notice further clarifying Arizona Transaction Privilege Tax Ruling No. 20-2.
State statutes provide that long-term motor vehicle leases should be sourced to the lessor's business location in Arizona. If the lessor does not have an Arizona business location, leases are sourced to the lessee's shipping address. In contrast, city statutes require a long-term motor vehicle lease to be sourced to the location of the original motor vehicle dealership.
TPR 20-2 requires that the state provisions apply and long-term motor vehicle leases transferred to a third-party leasing company be sourced using the state sourcing provisions.
Sourcing sales to the correct source is a battle most multi-state businesses have to fight. It’s important to keep in mind the complexities of state and local tax and the different provisions applicable across all industries.
Delaware’s Money Match Program
The Delaware Office of Unclaimed Property issued a reminder to taxpayers that its Money Match unclaimed property program will automatically return lost money to Delaware taxpayers. The program matches the state’s unclaimed property database with verified addresses and taxpayer information to return money to rightful owners without requiring the filing of a claim and supporting documentation. The program is expected to send out over 6,500 checks returning over $900,000 back to its rightful owners.
Many other states require an unclaimed property claim to be filed along with supporting documentation verifying the person’s identity. By developing the Money Match program Delaware has streamlined this process making it easier for taxpayers to receive money owed to them.
Colorado Provides Guidance for Industrial Equipment Leasing Companies
The Colorado Department of Revenue (CDOR) has ruled that providing a crane or hoist with an operator to customers is a rendering of a service which sales tax is not required to be collected. Use tax is applicable when said equipment is used or stored in Colorado after it was purchased in another state, but a credit up to the amount of use tax due may be utilized for similar tax paid to another state.
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Contributor: Courtney Sboro
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