Regulatory Analysis
Saint Tammany Parish in Louisiana has scheduled an election on March 24th to determine the fate of two 0.25% parish-wide sales and use taxes. If either or both taxes are voted down the parish-wide sales tax rate will decrease up to 0.5% effective April 1, 2018. If either or both taxes pass the renewal rate for each […]
On February 23, 2018, the South Carolina Department of Revenue clarified how the accommodations tax should apply to additional charges that are assessed when guests rent accommodations at a hotel, motel or other facility. The South Carolina Code of Regulations Chapter 117, Section 117-307.1 has been updated to reflect this new guidance, which is presented […]
On March 2, 2018, New Mexico Governor, Susana Martinez, signed House Bill 79 into law thereby establishing a one-day sales tax holiday on the Saturday following Thanksgiving. The holiday applies to sales of certain items of tangible personal property, provided the sales price is less than five hundred dollars ($500), the seller's primary place of […]
Pennsylvania has recently enacted legislation requiring certain remote sellers, marketplace facilitators, and referrers to choose between either collecting and remitting Pennsylvania sales tax or complying with notice and reporting requirements. If any of the aforementioned do not collect and remit sales tax, notice must be provided to the purchaser regarding the sales and use tax, […]
The Governor of Puerto Rico introduced a legislative proposal representing a comprehensive new fiscal plan intended to spur economic growth and development. The plan proposes numerous tax changes, including a reduction of a number of sales tax rates. Specifically, the Business to Business Services Rate would fall to 2% in 2019 and be completely eliminated […]
On January 24th, 2018, Massachusetts Governor Charlie Baker released his fiscal 2019 budget plan. Included in the budget is a proposal for real-time sales tax remittance from credit card companies and other third-party payment processors, requiring them to remit to the Commonwealth, on a daily basis, the portion of a sale that is attributable to sales […]
On January 22, 2018, the President signed into law H.R. 195, which provides continuing funding to the federal government through February 8, 2018. While this resolution received a massive amount of media attention, the fact that law includes a suspension of the 2.3% medical device excise tax for two more years (until January 1, 2020) was […]
The Comptroller of Maryland recently updated the "What's New for the 2018 Tax Filing Season" (2017 Tax Year) page on the Comptroller's website. This page tracks changes in Maryland's tax law. The following changes have been made: For tax year 2017, Calvert County has increased its rate to 3.00% and Somerset County has increased its […]
On January 12, the United States Supreme Court agreed to hear a case through which they will re-consider the primacy of “physical presence” in determining a sellers’ obligation to collect and remit sales tax across the country. The case (South Dakota v. Wayfair, Inc. Et al.) comes to the Court based on a South Dakota […]
The State of Arkansas will repeal its waste tire fee and impose a new rim removal fee effective January 1, 2018. The waste tire fee was originally imposed on the retail sale of new tires at a rate of $2.00 per tire. The recently enacted legislation repeals that fee and imposes a new fee on […]
In 2013, Congress passed the Medical Device Excise Tax (MDET). It applied (at the rate of 2.3%) on the first sale of qualifying medical devices in the United States by manufacturers or importers. The MDET was the closest thing to a federal-level sales tax in the United States. The Consolidated Appropriations Act of 2016 contained […]
Illinois enacted legislation which will impose a sales tax of 6.25% on rental purchase agreements (also known as rent-to-own agreements) effective January 1, 2018. Rental purchase agreements covered by this tax include agreements for the use of merchandise by a consumer for personal, family, or household purposes for an initial period of 4 months or less […]
The Indiana Department of Revenue has re-released sales tax Information Bulletin #60, which clarifies definitions and applicability of sales and use taxes on transactions involving a construction contractor. Notably, the Bulletin clearly outlines when contractors are required to pay sales and use tax, and when they are required to charge sales and use tax. In […]
The Legislature in Arkansas has passed Act 141, which makes significant changes to how sales and use taxes will apply to candy, soft drinks and specified digital products, after January 1, 2018. Under Act 141, candy and soft drinks will be removed from the current 1.5% reduced-sales tax rate designated for food, which is a […]
The Treasury Department of Puerto Rico (Hacienda) issued Administrative Determination 17-26 which creates a sales and use tax exemption for all sales and purchases made by small and medium taxpayers. According to the new rule, all taxpayers with gross revenues during the previous 12 months of $1,000,000 or less will qualify. Under the rule, small business […]
The Governor of Pennsylvania has recently signed the fiscal year revenue plan proposed under PA House Bill 542. The plan, which was the product of a spirited debate, creates new compliance obligations on remote sellers. Specifically, the new law requires many marketplace facilitators, marketplace sellers, and remote sellers to notify purchasers of their obligation to […]
The Massachusetts Department of Revenue recently enacted a regulation that places a tax collection obligation on e-commerce sellers which became effective on October 1. Sovos laid out the potential ramifications here. In the last several days, Crutchfield Corp. (an internet and catalog retailer headquartered in Virginia) filed a legal complaint in their local court system […]
On October 22, the South Dakota Attorney General Marty Jackley announced the filing of a petition for certiorari, requesting U.S. Supreme Court review of the South Dakota Supreme Court decision in South Dakota v, Waifair, Overstock and Newegg. The state court decision being appealed affirms a lower court decision limiting the ability of the state to tax e-commerce sellers. […]