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How Has New Mexico Simplified Sales Tax?

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 […]

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How Louisiana Sales Tax Continues to Evolve

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% […]

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What to Know About Florida Sales Tax

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 […]

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Which States Can Still Improve Sales Tax Post-Wayfair?

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 […]

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Important Facts About Texas Sales Tax

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 […]

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South Dakota Sales Tax Continues to Evolve

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 […]

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Key Things to Remember About Colorado Sales Tax

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, […]

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Understanding Sales Tax Requirements in Alaska

While there is no statewide sales tax in Alaska, locals are given wide authority to impose and collect sales tax through enacting local ordinances. Around 100 of these boroughs and cities have stood up their own sales tax requirements. In order to benefit from the 2018 Wayfair case, the taxing locals realized they needed a […]

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Why Sales Tax Simplification is Important

While the landmark South Dakota v. Wayfair Supreme Court decision flipped the traditional physical presence nexus standard on its head, the foundational requirement in the Commerce Clause of the U.S. Constitution prohibiting states from enacting tax requirements that discriminate against or unduly burden interstate commerce remains. As we approach the Wayfair fifth anniversary, this principal […]

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5 Factors When Moving Your Sales Tax Engine to the Cloud

Moving from an on-premise sales tax engine to one in the cloud can help businesses better manage their sales tax obligations. Whether organizations need improved oversight and management of exemption certificates, an automated process for tracking ever-evolving regulatory changes or more comprehensive compliance reporting, a cloud migration project may be needed. However, there are several […]

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How Do I Find the Right Sales Tax Automation Tool for My Business?

By Judy Vorndran, J.D., CPA, TaxOps and Nancy Steele, TaxOps  To deal with the uncertainty of evolving sales and use tax policies in numerous jurisdictions, businesses have increasingly turned to software providers to deliver the right rates and calculations for each transaction. Unfortunately, calculating the amount of tax due is only part of what it […]

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Sales Tax Compliance Prep for the Big Game

Whether your retail company is planning to advertise in the Big Game this weekend or just watch the excitement with family and friends, there are always key things to prep for with regard to sales tax compliance. Special events can be a boon to retailers, but realizing taxes are impacted in numerous ways can help […]

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How to Strengthen 3 Key Components of a Successful Finance Team

Building a strong foundation for your finance team is critical for numerous business strategies, including ensuring a compliant and accurate approach to sales tax. We’ve previously discussed the importance of getting your finance/tax and IT teams on the same page, but it’s also critical to take a step back and make sure the teams have […]

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Sales Tax Trends for 2023

Early signs as to what’s ahead To no one’s surprise, 2022 was a busy year in the world of sales tax. Along with the usual barrage of rate, rule and form changes, many of which will become effective on January 1, 2023, we began to witness what is likely the beginning of a shift in […]

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Which Sales Tax Solution Does My Business Need?

Picking the right sales tax solution is not always apparent. Federal, state and local regulations can quickly change. Businesses evolve, whether through introducing new products and services or by expanding into new jurisdictions. Organizations must consider internal processes as well, ensuring that a sales tax solution helps–not hinders–daily operations. It’s also important to independently evaluate […]

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5 Sales Tax Compliance Questions MS Dynamics 365 Users Want Answered

Microsoft users have been pushing toward the shift to the cloud and modernizing their IT strategy. However, it is essential they do not overlook their sales tax strategy as a factor in these decisions. As businesses grow and tax regulations become more complex, it will be beneficial to keep sales tax compliance manageable. Sovos recently […]

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Is the Time Right for a Sales Tax Nexus Review?

Sales tax nexus is not static. As your company grows, expands and evolves, your nexus footprint will likely change as well. All too often, companies will not realize the compliance impact of those changes until they receive an unfriendly inquiry from a sales tax auditor. As tax compliance professionals emerge from the barrage of requirements […]

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Wisconsin Quietly Announces Sales Tax Rules on NFTs

Emblematic of a trend gaining momentum, Wisconsin becomes the fifth U.S. taxing jurisdiction to promulgate official guidance regarding the applicability of sales tax to non-fungible tokens (NFTs). Going as far back as 1976, Wisconsin published a periodic “Tax Bulletin” announcing new laws, letter rulings and status updates on tax-related litigation. In its most recent edition […]

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