Regulatory Analysis
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. […]
The Cook County (Illinois) Board of Commissioners voted to repeal the recently enacted sweetened beverage tax. The tax will remain effective until December 1, 2017 after which retailers will no longer be required to collect the tax. The sweetened beverage tax consisted of a $0.01 tax on each ounce of sweetened beverage sold at retail […]
The Puerto Rico Hacienda modified an announcement initially made via their Facebook page several days ago that substantially limits the suspension of their requirement to make bi-monthly pre-payments of sales tax. Specifically, Hacienda issued Administrative Determination 17-15 on October 2. The Determination indeed suspends the bi-weekly pre-payment of sales tax, but only for medium and […]
While official guidance remains difficult to obtain, news from Puerto Rico indicates that the Governor has issued an Executive Order establishing that all donations sent to the island can clear customs free of use tax and any other local tax. According to the information provided by the Secretary of the Treasury, for the exemption to […]
The Massachusetts Department of Revenue released the finalized version of 830 CMR 64H.1.7 on September 22, 2017. The finalized regulation contains much the same (but not identical) language as the proposed regulation which in-turn borrowed heavily from the previously rescinded Directive 17.1. Throughout these machinations, the purpose has always remained the same – utilizing existing […]
On the heels of enacting Regulation 830 CMR 64H.1.7, which details how e-commerce sellers may have a sales tax collection and remittance obligation in Massachusetts, a Massachusetts judge has ordered Amazon.com to disclose the identity of all third-party sellers who utilize the Amazon marketplace and had their inventory stored in the Amazon warehouse facility in […]
The Treasury Department of Puerto Rico (Hacienda) has suspended the requirement to remit the regularly scheduled pre-payments of sales tax due for transactions taking place during August 2017. As has been the case recently, the announcement was made via the Hacienda Facebook Page. Details are scant aside from a notation indicating that the suspension will […]
As posted to the Twitter Feed for the Treasury Department of Puerto Rico (Hacienda), the sales tax exemption for prepared food has been extended until October 8. The information released on Twitter does not make any reference to a regulation or ordinance, likely due to limited infrastructure and capabilities currently available in Puerto Rico in […]
News from Puerto Rico seems to indicate that as result of the devastation created by Hurricane Maria, the Treasury Department of the island (Hacienda) has issued a four-day sales tax holiday for prepared food. This sales tax holiday is would be starting Thursday September 21, and would end Sunday, September 24 2017. This information has not […]
The Australian Treasury has recently introduced the Treasury Laws Amendment (2017 Measures No. 6) Bill 2017, which alters the GST treatment of digital currency. In an effort to promote more international commerce business in Australia, the proposed bill removes the GST obligations from digital currency effectively putting such currency on even footing with any other physical currency in circulation. More […]
On September 18, 2017, the Governor of Puerto Rico declared again a commonwealth-wide state of emergency related Hurricane Maria, which is on track to impact the island. Under existing law, should this “state of emergency” turn into a “disaster declaration” the Puerto Rico Department of Revenue retains the authority to temporarily suspend state and local sales […]