Tax Publications
Wayfair Impact - Exemption Certificate Management
Posted on December 24, 2021. Category: Tax Publications
If preparing, issuing, collecting, verifying, and storing exemption or resale certificates for exempt sales made in the US was not a daunting task previously, it most certainly is now. After the Wayfair decision in June 2018 that rocked the sales tax world, businesses are now faced with a myriad of resulting dynamics that will affect their time, profitability, and compliance. How a company manages those changes can have a positive effect on their state and local sales tax compliance as well as their profit margin if done well.Administrative BurdenNow that not only physical nexus but also economic nexus are...
Read MoreIntro to Resale Certificates
Posted on December 20, 2021. Category: Tax Publications
Resale certificates can go by a number of different names: Reseller‘s Permit, Resale License, Resale Exemption Certificate, etc. Whatever name the document goes by, the function of it is to allow retailers to buy products without paying sales tax. Resale certificates cannot be used for items that will be used or consumed by the purchaser in their normal course of business. The seller is responsible for ensuring the certificate is valid when they accept it from the purchaser. If the seller collects an invalid certificate, they may be on the line to cover the taxes. As with...
Read More3 Essentials of Exemption Certificates
Posted on December 17, 2021. Category: Tax Publications
Exemption Certificates IntroductionTo know if an exemption or resale certificate your business receives or issues is valid, it is important to understand what this document entails. An exemption or resale certificate is a form or document issued by a business to ensure sales tax is not applied to their invoice when they intend to resell their purchase. Sales tax is not applied to these purchases because the applicable sales tax will be applied on the final sale of the exchanged tangible property. This practice ensures states do not collect sales tax twice on the sale of the same piece...
Read MoreConsumer’s Use Tax vs. Seller’s Use Tax: Nearly Every Business owes Use Tax
Posted on December 15, 2021. Category: Tax Publications
Use Tax OverviewUse tax is defined as a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. It is known as a complementary tax to sales tax and can be applied if a different state sales tax was charged at a lesser rate or if an incorrect rate is charged entirely. However, use tax will most often apply when a business makes a purchase from an out-of-state-seller that is not required to collect sales tax in the purchaser’s state. Use tax exists as a way...
Read MoreYou Missed It: Last Week in Allyn Tax News
Posted on December 14, 2021. Category: Tax Publications
Taxable Values: Don’t Be Afraid to AppealEvery year companies must file business personal property returns to the various local taxing authorities where they hold assets. These returns determine the taxable values that those authorities use to calculate your annual business property tax. Most jurisdictions, upon receipt of the return, calculate an assessment or taxable value and generate a notice that they mail to the various businesses. This amount is then applied to the authority’s tax rate to give you your tax amount for the year. It is vital for a business to know and...
Read MoreIn Case You Missed It: Last Week in Allyn Tax News (November 22-26)
Posted on December 01, 2021. Category: Tax Publications
New York City, NY Issues the City’s Property Tax Rates for the 2022 Tax YearThe New York City Department of Finance has issued that the 2022 property tax rates are: Class 1 property – 19.963%, Class 2 property – 12.235%, Class 3 property – 12.289%, and Class 4 property – 10.755%.Iowa Issues Guidance for Remote Sellers with Multiple Out-of-State LocationsIowa defines a remote seller as someone that makes retail sales of tangible personal property, services, or specified digital products into Iowa, but does not have a physical presence in Iowa. A remote seller may make sales into Iowa through a variety of ways including by...
Read MoreIn Case You Missed It: Last Week in Allyn Tax News (November 1-5)
Posted on November 08, 2021. Category: Tax Publications
North Dakota Local Sales and Use Tax Rate ChangeActive January 1, 2022, the city of Richardton is increasing its sales, use and gross receipts tax by 0.5% and removing the $100 per sale maximum tax ceiling. This increase brings the tax rate to a total of 2.5%. There are no added exemptions and contracts bid before January 1, 2022 are excluded from this rate increase. Leases of Buried Dark Fiber Optic Cable In North Carolina: Taxable or Exempt?North Carolina Department of Revenue has issued a private letter ruling to a taxpayer in regard to the leasing of buried dark fiber optic cable. The taxpayer...
Read MoreTop Five Mistakes to Avoid in Property Tax in 2021
Posted on November 03, 2021. Category: Tax Publications
Tangible Personal Property Tax OverviewCompanies who have tangible business personal property or inventory located in the U.S. are required to file annual returns of such assets to local taxing authorities. The reported data includes asset cost and year of acquisition, as well as inventory value for states that tax inventory.Many people don’t realize that property tax must be paid on business assets every year that the assets are in use – even if they’ve been written off for income tax purposes. Taxing authorities (counties, cities, and states) place a value on the assets...
Read MoreIn Case You Missed It: Last Week in Allyn Tax News (September 13-17)
Posted on September 22, 2021. Category: Tax Publications
Capital Equipment Exemption in MinnesotaThe 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 NexusThe Utah State Tax Commission...
Read MoreOregon’s Corporate Activity Tax
Posted on September 15, 2021. Category: Tax Publications
Did you know that several states have their own taxes unique to them that businesses must file in order to remain compliant? States such as Washington, Delaware, and Oregon have state specific taxes. Oregon’s Corporate Activity Tax (CAT) is a state specific tax that was signed into law in May of 2019 and became applicable to tax years beginning January 1, 2020.Oregon’s Corporate Activity Tax is a tax for the privilege of doing business in Oregon and is based on commercial activity in Oregon. This tax applies to commercial activity in excess of $1 million for all types of...
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