Last Week in Tax News (May 15-19, 2023)

Fuel Up Fast

The New York Department of Taxation and Finance has updated Publication 718-F (Local Sales and Use Tax Rates on Qualified Motor Fuel, Highway Diesel Motor Fuel, and B20 biodiesel), effective June 1, 2023. The following jurisdictions have altered their sales tax rate from the percentage rate to a cents-per-gallon rate as follows: (1) Motor/diesel motor fuel--Delaware County, 8% (until November 30, 2023); Erie County, 10%; and Jefferson County, 12% (until February 29, 2024); (2) B20 biodiesel -- Delaware County, 6% (until November 30, 2023); Erie County, 8%; and Jefferson County, 10% (until February 29, 2024).

Staying Connected

The Alabama Court of Civil Appeals (Court) has affirmed the Jefferson Circuit Court's (trial court) holding that the taxpayer Cellular Express, an authorized dealer for Boost Mobile, did not owe sales taxes on funds received from customers as prepayments for Boost's wireless service from April 2009 through March 2012. The Court disagreed with the Department of Revenue's contention that the prepayments for wireless service that Cellular received during this period constituted the sale of a "prepaid authorization number" under Ala. Code §40-23-1(a)(13). At the time the applicable sales occurred, Ala. Code §40-23-1(a)(13) provided that a sale of a prepaid telephone calling card or a prepaid authorization number, or both, would be deemed the sale of tangible personal property subject to the sales tax.

Don’t Go Chasing Heat Pump Systems

Effective 05/11/2023, Colorado limits the sales and use tax exemption on all sales, storage, and use of heat pump systems and heat pump water heaters that are used in commercial or residential buildings to on and after January 1, 2023, but before January 1, 2024. Previously, the exemption was allowable on and after January 1, 2023. The exemption's repeal date is now January 1, 2027, previously being January 1, 2033.

100% Eco-Friendly

The Texas Comptroller of Public Accounts provided notice that that the annual Water-Efficient and Energy Start products tax holiday will take place Saturday, May 27th through Monday, May 29th. Products displaying a WaterSense and Energy Star label can be purchased tax free for personal or business use during the holiday. Water-efficient products include showerheads, bathroom sink, toilets, landscape irrigation controls, and more. The energy-efficient products include air conditioners priced at $6,000 or less, refrigerators priced at $2,000 or less, ceiling fans, compact fluorescent light bulbs, integral LED bulbs, dishwashers, dehumidifiers, and clothes washers. The holiday also applies to lawn and garden products that help conserve water outdoors for residential use only.

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