Tax Updates from Across the U.S.

by DMA Staff | Sep 21, 2018
Completely Compliance- Across America

Looking Back 

Alabama: On March 28, Governor Ivey signed Act 2018-539 which will expand the allowance for companies to participate in the Simplified Sellers Use Tax Remittance Program. The Act allows out-of-state businesses who are acquiring nexus through physical presence due to an acquisition. These newly obligated companies can participate in the Simplified Sellers Use Tax program to fulfill their collect and remit requirements. The Act was effective May 1, 2018. Also in Alabama, a potential change in lease and rental rules will mandate delivery and pick-up fees as part of a lease are subject to rental tax. A public hearing is scheduled on July 10, 2018. 

Arizona: Signed on March 16, HB 2484 effects how local taxing jurisdictions tax food items for human consumption. All food items are taxed uniformly without additional taxes or fees associated. However, tax cannot be applied to wholesale sales of food, packaging or foods purchased using food stamps. 

Illinois: Effective October 1, 2018, retailers with $100,000 or more in gross revenue or 200 separate transactions to Illinois residents have nexus in the state and must register and collect tax. This new nexus regulation was included in HB 3342 and was approved on June 4, 2018. 

Indiana: Currently, the state is offering a one time voluntary disclosure initiative for online sellers who now find they have obligations to collect and remit sales/use tax. The initiative is in effect until December 31, 2018. 

Iowa: SF 2417 has redefined “retailer” to include sales of digital products and services. In addition, it established the definition of a Marketplace Facilitator, which includes internet and catalog sales. The state may require the Marketplace Facilitator to collect sales and use taxes similar to a retailer or impose the use tax notification requirement (Sec. 204). The bill was signed by the Governor on May 30. 

Viaden, Mississippi: SB 3067 authorizes the city to impose a gross receipts tax on sales at restaurants of prepared food and drink at a rate of 2%. 

New York: In the 2018-2019 budget, the taxability of food and beverages for certain establishments are considered for resale and are no longer taxable. The change in taxability was effective June 1, 2018. For a detailed listing, please visit the link above. 

Wisconsin: The Village of Sister Bay has enacted a new Premier Resort Area Tax of 0.5% which was effective July 1, 2018. Also in Wisconsin, a sales tax holiday was set for August 1-5, 2018. Clothing, school supplies, computers and computer supplies were exempt from sales tax up to a certain threshold.  

Looking Forward 

Louisville, Colorado: The city now offers a new online system which can handle a variety of tasks. Once a login is created, you can file returns, renew licenses, view filing and payment history as well as update your contact information. Please note, however, that the city does charge a $2 fee for any online payments.  

Illinois: The state revenue website will have a new look soon. The new site will be mobile friendly and have better navigation and functionality. For a preview of the new web design, click here

Indiana: Vigo County will be the newest county to impose a food and beverage rate of 1%. The rate was effective September 1, 2018. 

Tennessee: The new TAP system recently implemented by the state can now be used to file more tax types. Franchise & Excise, Business, Hall Income and IFTA/IRP are added along with the initial tax type such as Sales and Use Tax. The Department intends to have all tax types converted to the new system by 2020. 

New Jersey: A tax amnesty program will soon be available. The amnesty will cover any returns due between February 1, 2009 and September 1, 2017. The specific dates have not been determined; however, it is anticipated to be offered between November 1, 2018 and January 15, 2019.

This article is part of DMA's Completely Compliance quarterly newsletter. Stay up to date with sales and use tax news, events, and information by signing up for the newsletter here.