Looking Ahead to Summer Law Changes

Even though spring just started, warmer days, cookouts, and trips to the beach are just a few reasons to look forward to the summer. However, in the world of transactional tax, it can be one of the busiest times of the year. In addition to the various sales tax holidays which occur during the summer, many law changes become effective July 1, 2016. Below are several examples of law changes taking effect this summer that retailers should be aware of and keep on their radars. Idaho Many states exempt the sale of prescription eyewear from sales and use taxes. Idaho took an interesting approach when it passed House Bill 75, which became law March 19, 2015. This bill provided an exemption from sales tax for prescription eyeglasses and eyeglass component parts, which became effective July 1, 2015. The bill also provided an exemption for the sale of prescription contact lenses, but this exemption doesn’t become effective until July 1, 2016. Washington In addition to sales tax, the sales of tires are frequently subject to an additional fee.  Typically, the proceeds from these fees are used to pay for the cost of properly disposing of tires. In addition to the standard tire fee in Washington, the state has recently passed a higher fee that is set to apply to the sale of studded tires. Senate Bill 5987 was signed into law in Washington on July 15, 2015. In section 210 of the bill, a $5.00 fee is imposed on the sale of studded tires effective July 1, 2016. The fee is to be collected at the point-of-sale by the seller and remitted to the Washington Department of Revenue. Washington is currently in the process of drafting an administrative rule interpreting this new fee. This rule can be found in the Washington State Register, 16-02-057. Wyoming A number of jurisdictions impose an E911 fee or surcharge on the sale of prepaid wireless telecommunications services. Many of these fees are collected at the point-of-sale and remitted to the appropriate governmental body. Typically, the proceeds from these fees are used to offset the cost incurred in supporting emergency assistance services (9-1-1). House Bill 0044 was signed into law in Wyoming on March 3, 2015. This bill enacts an E911 fee of 1.5% on the sale of prepaid wireless communications access, which includes items such as prepaid wireless calling cards and prepaid monthly wireless service. The Wyoming Department of Revenue’s latest Taxing Issues Newsletter includes more information about this tax. Additionally, the law can be found in Wyo. Stat. § 16-9-109. To learn more about how different transaction taxes may affect your business or how our solutions can help you remain compliant, sign up for the Sovos blog or contact us to speak with one of our knowledgeable experts.