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Colorado enacted changes to the state’s Retail Delivery Fee (RDF) effective in May, which should provide some relief to wineries engaged in direct-to-consumer (DtC) wine shipping in the state. The RDF was adopted by Colorado in 2022 as a 27-cent fee that applied to all retail sales that involved the delivery of goods using motorized […]

The chorus to “California, Here I come,” a popular showtune from the Great American Songbook, starts with the lyrics, “California Here I come, right back where I started from.” For holders trying to stay on top of their California unclaimed property reports, it sometimes feels like a piece of musical déjà vu. Wait, didn’t we […]

In-person conferences are back in full force for Sovos in 2023. It’s likely that you, or your employees, have been invited to several industry conferences that offer high-impact keynote speakers and a great depth of potential insights into our industry. How do you evaluate the true value in terms of return on investment for you, […]

For fully remote sellers, sales tax compliance in Alabama can feel daunting. However, just prior to Wayfair, Alabama created the Simplified Sellers Use Tax system. Today, remote sellers with economic nexus in Alabama can apply to participate. Once accepted, their transactions become subject to a special flat rate (currently 8%), which represents an amalgam of […]

Oftentimes, small companies hold unclaimed property without realizing it, mistakenly assuming only mid-sized and large companies have the potential to generate it. In fact, many are not aware that such liabilities even exist. If small businesses do have some awareness, they do not fully understand the numerous responsibilities concerning unclaimed property and the consequences for […]

For the third year in a row, the U.S. Department of the Treasury’s annual General Explanations of the Administration’s FY2024 Revenue Proposals (Greenbook) includes a proposed update that would expand the federal backup withholding requirements. The proposed change would help facilitate more accurate tax information, supporting “the broader goals of improving IRS service to taxpayers, […]

New Mexico used to be one of a minority of states that applied origin-based local sales tax sourcing while also not applying a complimentary “seller’s use” tax to its local sales tax. Both of these things have changed in recent years. Today, New Mexico joins the majority of states in applying a destination-based tax system […]

Direct-to-consumer (DtC) wine shipping represents 12% of total off-premise domestic wine sales, totaling $4.1 billion in 2022. It’s no wonder that wineries from across the country are looking to expand their reach by shipping their bottles to consumers in every corner of the nation. In response, we’ve seen an increasing number of third-party shipping businesses […]

Despite Louisiana’s struggles to adopt meaningful sales tax simplifications, it implemented the Sales and Use Tax Commission for Remote Sellers, creating a single spot for state and local sales tax filing. Unfortunately, this system does not address the complexities of local sales tax rules. Prior to Wayfair, Louisiana allowed “volunteer” remote sellers to use their 8.45% […]

Until recently, Florida required sellers to calculate sales tax using a “bracket schedule,” which determines how much tax applies to the portion of sales priced under $1.00. While other states also publish tax brackets, those schedules are readily broken down into a clear mathematical formula. This was not the case with Florida, which previously continued […]

For the past couple of years, businesses have been emerging from their pandemic work settings at varying degrees. And during that time, we’ve been listening to your feedback. Sovos Booke (also known as Sovos Education) finally has multiple in-person continuing education opportunities coming your way this year. Your first chance to join us is coming June […]

Direct-to-consumer (DtC) shipping of wine comes in two general categories: on-site and off-site. Both ultimately involve the use of a third-party common carrier to fulfill an order by a consumer, but they differ in how the consumer places their order. “On-site” DtC shipments are those where the consumer was physically present at the winery’s premises […]

In the five years since the Supreme Court case of South Dakota v. Wayfair, Inc., every state with a sales tax has enacted a law regarding economic nexus. However, Wayfair did not change the constitutional requirement that sales tax cannot represent an undue burden on interstate commerce. To the contrary, it can be argued that […]

Texas is not the most complicated state when it comes to sales tax. Like Alabama, there are a plethora of local rates, but there aren’t the same tapestry of special rates and rules. Nonetheless, Texas has adopted a Single Local Use Tax rate and allows any remote seller (aside from marketplace facilitators) to use this […]

When most businesses think of unclaimed property, they likely consider outstanding checks issued from primary operating accounts, overlooking other sources that may hold potential exposure. Failure to recognize these exposures could result in significant interest and penalty assessments once discovered. Some of the most overlooked sources of potential unclaimed property include the following: Voided checks […]

This blog was updated on November 28, 2023 Businesses of all sizes must properly determine what tax information to report, where to report it, how to report it and when it needs to be reported. Each state can have its own requirements—and those requirements can change—making it increasingly complicated for organizations when it comes time […]

When South Dakota first adopted its thresholds for determining what remote sellers would become obligated to collect and remit their sales tax, the state specified that it would apply to companies that had, on an annual basis, $100,000 in gross sales or engaged in 200 or more separate transactions into the state. Once the Wayfair […]

Colorado created the Sales and Use Tax System (SUTS) in 2017, providing a statewide local filing portal, sales tax lookup tool and a robust tax matrix. The system is currently available for businesses with retail sales over $100,000 per year and has around 50 participating locals. Given the number of “home rule” cities in Colorado, […]