tag:blogger.com,1999:blog-133173332024-03-15T18:09:36.331-07:00The Sales Tax GuyEducation and training on state sales and use taxes. <br>We focus on the laws, as well as your systems, policies and procedures to assure compliance.
There are a couple of jokes, too.Unknownnoreply@blogger.comBlogger535125tag:blogger.com,1999:blog-13317333.post-16326765578239125262019-08-26T10:27:00.001-07:002019-08-26T10:27:45.663-07:00RetirementIn case any of you are still visiting...you may have noticed a lack
of activity. A variety of issues have happened over the last few
years. It basically has come time to simply declare that I'm retired.
So...I'm retired. <br />
<br />
There are going to be a couple of "evergreen" on-demand programs available. And I'll leave these blogs up. <br />
<br />
Thanks for your readership and support over the years. Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-36105650748553723402018-08-17T10:11:00.000-07:002018-08-17T10:14:15.342-07:00Service Sales and Wayfair<div class="separator" style="clear: both; text-align: center;">
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<a href="https://1.bp.blogspot.com/-_sHzebDHsTQ/W3cAyXYXxsI/AAAAAAAEbo0/w-SWBc2OnqUqLHPi_91qZR9482uwj46HQCLcBGAs/s1600/3508924934_7c806778ed.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="332" data-original-width="500" height="212" src="https://1.bp.blogspot.com/-_sHzebDHsTQ/W3cAyXYXxsI/AAAAAAAEbo0/w-SWBc2OnqUqLHPi_91qZR9482uwj46HQCLcBGAs/s320/3508924934_7c806778ed.jpg" width="320" /></a></div>
I was chatting with a new acquaintance who was a headhunter based in Chicago. When he asked what I did for a living, I said that I did training on sales and use taxes. I fully expected the conversation to come to a full stop at that point, as it usually does. Nobody knows what to say when I mention I talk about sales tax for a living.<br />
<br />
But not this time. He said, "Yeah, I heard something about this...a big Supreme Court decision, right?"<br />
<br />
I brightened. "Yep, it's a pretty big topic in my world right now." At least it's more exciting than sales tax holidays and local rate increases.<br />
<br />
As the conversation veered into what HE did for a living, I felt the need to expound upon the potential exposure he had (this is why I don't have any friends). "Just out of curiosity, do you do any work in Pennsylvania?"<br />
<br />
"Yep, I have a couple of really good clients there. Why, do you know anyone who's looking?" At least we had in common the fact that we were always working.<br />
<br />
"Did you know that headhunting (employment agency) services are taxable in Pennsylvania?"<br />
<br />
"What are you talking about? It's a service. Services aren't taxable." He's from Illinois so he's allowed this bit of <span class="vmod">naiveté. </span><br />
<span class="vmod"><br /></span>
<span class="vmod">"They are in a couple of states - including Pennsylvania."</span><br />
<br />
<span class="vmod">"Yeah, but I'm in Chicago. I never even go to Pennsylvania...I do everything by phone."</span><br />
<br />
<span class="vmod">"Yeah, but the services are being received in Pennsylvania. And with that new Supreme Court decision, they can go after you, even if you've never set foot in PA. How much do you bill to PA in a year?" By the way, </span><span class="vmod"><span class="vmod">cool people just say PA instead of all those syllables.</span></span><br />
<br />
<span class="vmod">He kind of looked off into space, "Oh, at least $200,000." </span><br />
<br />
<span class="vmod">"Yep, you should be worrying."</span><br />
<br />
<span class="vmod">Again, no friends.</span><br />
<br />
<span class="vmod">People who sell services almost never realize that the services might be taxable somewhere. In the past, that probably didn't make any difference because of the Quill rule about physical presence. My new friend never visited PA and had no physical presence there. Therefore, no problem.</span><br />
<br />
<span class="vmod">But in a post-Wayfair world, the physical presence hurdle has disappeared. Now it's just a question of volume of sales. So if a service provider does enough business in the state, he is probably going to be liable for taxes.</span><br />
<br />
<span class="vmod">Three pieces of advice that apply to everyone, but to service providers in particular:</span><br />
<br />
<span class="vmod">1. List the states in which you sell more than, oh, say $100,000 per year, or make 200 transactions per year (these are the Wayfair thresholds which may or may not be the minimums*). I hope your accounting system can provide this information. Otherwise, find a temp to do some serious spreadsheeting (that temp might be taxable too!).</span><br />
<span class="vmod"><br /></span>
<span class="vmod">2. Is what you sell taxable in those states? This is a different type of research. <a href="https://salestaxguy.blogspot.com/search/label/Research%20-%20The%20Best%20Resources">Use whatever research tools you have available</a>. </span><br />
<span class="vmod"><br /></span>
<span class="vmod">3. If the result is that your sales in a state exceeds those thresholds, contact your friendly sales tax professional. Then, based on her advice, panic.</span><br />
<br />
<span class="vmod">*Most states seem to be gravitating towards these numbers. But not all of them. </span><br />
<br />
Jim Frazier - The Sales Tax Guy<br />
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
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<span class="vmod"><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-51131618258605389372018-07-18T12:42:00.000-07:002018-07-18T12:45:29.652-07:00Safe Harbor Thresholds? - Yeah, we got yer thresholds right here. And they're just like South Dakota's!<div style="text-align: center;">
<img id="yui_3_11_0_3_1531942881146_353" src="https://c1.staticflickr.com/1/21/26845466_664076c0d6.jpg" /> </div>
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States are treating the safe harbor thresholds from Wayfair as the only thing they have to worry about.</div>
<br />
They
figure if they say that $100,000 in sales or 200 invoiced sales per year
is what gives you economic nexus, than they're good. They're ignoring
all of the other stuff about South Dakota's tax system that the Supreme Court seemed to really like. Things like state
administration, simple tax base, simple rates, and belonging to the Streamlined Sales Tax Project. You know, stuff that makes it <i>simpler.</i><br />
<br />
So it's going to be
interesting when states like Louisiana, which is pretty much the exact
opposite of South Dakota in terms of the simplicity, think they can just
impose economic nexus, use the Wayfair thresholds, and they'll be cool.<br />
<br />
Do these people read? Like, the Supreme Court decision? Or any of the countless articles that have been published on this?<br />
<br />
And when the first court shuts them down, you know they're going to get all huffy.<br />
<br />
Jim Frazier - The Sales Tax Guy<br />
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-86906432874261690942018-07-13T11:24:00.001-07:002018-07-18T12:47:28.776-07:00The Most Important Piece of Software Acquisition Advice I can Give<div style="text-align: center;">
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<br />
Because of the Wayfair decision, a lot of you are going to be considering buying sales tax software. I have a bit of advice for you. <br />
<br />
In a previous career, I was in accounting software sales. And in a subsequent career, I was a software acquisition consultant. From that experience, I wrote a short whitepaper, which has been lost to the sands of time (and a failure to do proper backups).<br />
<br />
That document contained a lot of good advice about believing sales people (don't), trusting demos (again, don't), implementation planning (ha!), etc.<br />
<br />
But the best advice I can give, and the easiest, is VISIT the references that you get from the vendor. Don't just call them....VISIT them. And if it means you'll have to spend a couple of nights in Vegas on the company's tab, well, that's just the price that has to be paid.<br />
<br />
Try to get three references that are in your same line of business, or at least close enough to make the conversations meaningful. Ditto for company size and multi-state exposure. <br />
<br />
Visiting the references means:<br />
<br />
1. You can look them in the eye when they tell you the software works well. This is much better than the response of "fine" you'll get in a phone conversation.<br />
2. You'll be able to spend more time with them than just a phone call, so you'll get more details and hear more about the dirty laundry.<br />
3. You'll learn more in general just by visiting another business in your line.<br />
4. You'll have another user you can talk to when things go wrong. <br />
5. Don't be a piker - buy lunch or dinner.<br />
6. Paying for a round of golf is even better, if you like that sort of thing.<br />
<br />
Your vendor may be leery of you doing this. But if that's the case, ask yourself why. I always hated it when they asked for references.<br />
<br />
The Sales Tax Guy<br />
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars.<br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-82694069251460785002018-07-05T07:55:00.000-07:002018-07-05T07:55:15.111-07:00"Leveling the Playing Field"<div class="separator" style="clear: both; text-align: center;">
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Lemme tell you about a situation that just happened to me.<br />
<br />
The
bulb on my desk-lamp just went out. It's one of those oddly shaped
fluorescent bulbs. Now, I could trudge over to the hardware store, and
ask the guy in the grungy vest where the light bulbs are. He'll take me
to them because he has nothing else to do, and he'll stare at the
display like he's helping. He'll even pick something and say, "is this
what you're looking for," and I'll point out that it looks nothing like
the bulb in my hand which I've already shown him twice. Eventually,
I'll find the hanger it should be on. He says they seem to be out of
stock. I grumble something that sort of thanks him for his help, and
head to the next big box hardware store. I go through the same process
again and find the bulb and head to the cash register. There, they'll
ask if I have a discount card, swipe my credit card, I'll sign the
device, I'll refuse a bag, and I'll be on my way. Total time in the car
will be at least 30 minutes, with another 20 minutes in the stores for
an elapsed time of at least 50 minutes, if not more.
<br />
<div>
<br /></div>
<div>
Or,
I can go to Amazon, search for the numbers in the search bar that I
found on the side of the bulb, and it comes up with suggestions. I pick
the one that matches what I'm looking for and click on the "order"
button. I'll get it the day after tomorrow. And a moment later, I'll
get a receipt via email.</div>
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<br /></div>
<div>
So I saved at least 49 minutes, a little gasoline, and the tedium of dealing with the hardware industry's finest. </div>
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<br /></div>
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And I didn't even notice whether Amazon charged me tax!</div>
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<div>
Attention to everyone from retailers to politicians to uninformed journalists - anyone who likes to use buzzwords. <b>The field has NOT been leveled</b>. </div>
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<div>
Unless
that hardware store can match the ability to find the item with a
couple of keystrokes,
be 100% in stock all the time,
avoid dealing with uninformed help, expedite the check-out, and do all
of that in about 2 minutes, you are still going to lose massive sales to
the internet. Unless you sell high-end stuff like furniture or
expensive clothing, my guess is the average consumer doesn't even notice
the sales tax. Because they saved 49 minutes!!!</div>
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<br /></div>
<div>
Now,
if I needed that bulb right away, I would have gone on the
aforementioned adventure. Or I might have gone if I just wanted to
wander around the hardware store, as guys are wont to do. But in this
case, I saved almost an hour of my time and I can live with a slightly
darker office for a couple of days.</div>
<div>
<br /></div>
<div>
And I even shot a few cents to my favorite charity through the Amazon Smile program.</div>
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<br /></div>
<div>
I
see all of these articles that claim that the recent decision in SD vs.
Wayfair is going to save their businesses by "leveling the playing
field." No, it's not. See above.</div>
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Jim Frazier</div>
<a href="mailto:jim@jimfrazier.com" target="_blank">jim@jimfrazier.com</a><br />
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<a href="mailto:jim@takechargeseminars.com" target="_blank">jim@takechargeseminars.com</a></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-6460218815516288812018-06-29T15:23:00.001-07:002018-06-29T15:23:27.694-07:00Hopefully, the last few Wayfair articleshttp://salestaxnews.blogspot.com/2018/06/hopefully-last-few-wayfair-articles.htmlUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-46517096085395884722018-06-29T11:48:00.001-07:002018-06-29T11:48:54.533-07:00Oh, Gawd - not more Wayfair articles!!! http://salestaxnews.blogspot.com/2018/06/oh-gawd-not-more-wayfair-articles.htmlUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-12286806906216764352018-06-26T11:43:00.003-07:002018-06-29T11:52:00.396-07:00More SD vs. Wayfair Articles The number of in depth articles keeps coming, although it does seem to be abating. <br />
<br />
<a href="https://salestaxnews.blogspot.com/2018/06/more-sd-vs-wayfair-articles.html">https://salestaxnews.blogspot.com/2018/06/more-sd-vs-wayfair-articles.html</a><br />
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-69802936662219867202018-06-23T08:16:00.000-07:002018-06-24T12:01:01.036-07:00Thanks for the welcome back, Supreme Court<div class="separator" style="clear: both; text-align: center;">
<a href="https://3.bp.blogspot.com/-UXL9UYeos7M/Wy5Ye6JGoZI/AAAAAAAEZdQ/qsKbEu8uzFQ8RzrkMBjl6d3x7ogqtIzeQCLcBGAs/s1600/120289995_84c409f296_z.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="471" data-original-width="640" height="294" src="https://3.bp.blogspot.com/-UXL9UYeos7M/Wy5Ye6JGoZI/AAAAAAAEZdQ/qsKbEu8uzFQ8RzrkMBjl6d3x7ogqtIzeQCLcBGAs/s400/120289995_84c409f296_z.jpg" width="400" /></a></div>
<br />
I would like to thank the Supreme Court for their welcome of me back to the world of Sales Tax*.<br />
<br />
They really shouldn't have dropped a nuclear bomb though. A nice card would have been fine. I like ones that play a tune (hint, hint).<br />
<br />
I was going through my Nexus presentation slides after I read the opinion and ... well... gee...there's nothing left. I'm going to have to put a big "THIS IS GONNA CHANGE" slide at the beginning and it will pretty much apply to everything else in the deck. By the way, I'm going to be doing a NEW nexus webinar covering this topic. Watch this space.<br />
<br />
I've spent the last couple of days reading articles about this and I've listed some of the better ones at the bottom of this post. If you haven't been reading, please do so. Maybe you'll catch something I've missed.<br />
<br />
Here's my take (subject to correction by smarter people than me):<br />
<br />
1. The nexus rules requiring a <i>physical </i>presence in a state before being subject to that state's jurisdiction...poof! There is <i>no </i>physical presence required. The law we've been relying on since 1967? It's all gone, man! All that is required is having <i>substantial nexus</i>, which can be achieved in several ways - including simply having a lot of customers in the state. No people, real estate or stuff necessary anymore (argh..my seminar!). <br />
<br />
2. Congress better get on the case. The Supreme Court has left the landscape devastated and only Congress can fix things. Otherwise, there are going to be a lot more court cases in the next few years (oh heck, probably in mere months). The Supreme Court has passed the ball to Congress essentially saying, "Hey we blew everything up. We sure hope you have some ideas."<br />
<br />
Congress has three bills that they've been looking at, but nothing has been happening. They really hate touching taxes if they don't have to. But I'll bet things will happen now.<br />
<br />
I actually wonder if the Supreme Court justices were all sitting around the conference table arguing over who got extra mayo on their roast beef and someone said, "Oh, the hell with it...blow it up. Maybe that will get Congress to do something." Convince me I'm wrong.<br />
<br />
3 If the Supreme Court justices ran for election, I would wonder about the contributions they received from the software companies. Because you're gonna need software. And it isn't just big companies that need software. Small
businesses will too. If you invested in sales tax software stock before
last Thursday, congratulations. I think you and I are long lost
cousins, and I'd like a loan please.<br />
<br />
4. As of now, regardless of your business size, you may have nexus in a whole bunch of states. Some states, like South Dakota who started this mess, at least put a safe harbor in place so that companies that didn't sell much in South Dakota didn't have to worry about it (200 individual sales or $100,000 in sales, annually). But others don't give that break. Some states might begin, on MONDAY, to enforce the new rules, regardless of the size of the sellers.<br />
<br />
The Supreme Court used South Dakota's rules to show an example of what<i> substantial nexus</i> is. But states might go nuts anyway! The Supreme Court did not say that South Dakota's threshold was THE rule, but they sure do like it. I wonder if the reason the Supreme Court decided to take this case
was because South Dakota was smart enough to provide an agreeable safe harbor that
the Supreme Court could point to as guidance.<br />
<br />
<br />
5. So what do you do? I'm not going to say, "don't panic," because you may want to, you know, panic. One thing to do would be to write your Congressman/woman. Congress can fix this. But they just need to have the gumption to do it. Maybe take care of the tip at lunch.<br />
<br />
But we know how useful they are. So watch the states you sell to, for both stuff and services. If you sell more than the safe harbor rules that South Dakota provided, then you're definitely going to to have to deal with more states asking you for money. <a href="https://www.avalara.com/us/en/blog/2018/06/states-to-watch-inthewakeofthesupremecourtruling.html?sessionId=1529764374626&referrer=https%3A%2F%2Fsalestaxnews.blogspot.com%2F&lastReferrer=www.avalara.com">Avalara put together a nice article</a> summarizing the situation for each state. Thanks, Avalara.<br />
<br />
Speaking of software companies, all those brochures and emails you've been ignoring? You probably want to start looking at them.<br />
<br />
Oh, this is so nasty. <br />
<br />
Finally, if I see the words, "level the playing field" one more time (grits teeth)... You'll see why if you read just a sampling of the links below.<br />
<br />
*I've been pretty much off for the last year+ for a whole collection of reasons. Let's just say it has not been a great year. But all is now well. Except for the Supreme Court going nuts.<br />
<br />
I'm baaacccckkkkk. <br />
<br />
<hr />
<br />
Jim Frazier<br />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
<hr />
<br />
<br />
Here's some recommended reading:<br />
<br />
<a href="http://www.leveragesalt.com/blog/2018/6/companies-without-a-physical-presence-in-a-state-may-now-be-required-to-collect-sales-tax">http://www.leveragesalt.com/blog/2018/6/companies-without-a-physical-presence-in-a-state-may-now-be-required-to-collect-sales-tax</a><br />
<br />
<a href="http://taxprof.typepad.com/taxprof_blog/2018/06/5-4-supreme-court-clears-way-to-collect-sales-tax-from-online-retailers-in-todays-wayfair-decision.html">http://taxprof.typepad.com/taxprof_blog/2018/06/5-4-supreme-court-clears-way-to-collect-sales-tax-from-online-retailers-in-todays-wayfair-decision.html</a><br />
<br />
<a href="http://taxprof.typepad.com/taxprof_blog/2018/06/holderness-south-dakota-v-wayfair-the-more-things-change-.html#more">http://taxprof.typepad.com/taxprof_blog/2018/06/holderness-south-dakota-v-wayfair-the-more-things-change-.html#more</a><br />
<br />
<a href="https://www.jdsupra.com/legalnews/the-u-s-supreme-court-changes-sales-and-65422/">https://www.jdsupra.com/legalnews/the-u-s-supreme-court-changes-sales-and-65422/</a><br />
<br />
<a href="http://money.cnn.com/2018/06/21/technology/wayfair-vs-south-dakota/index.html">http://money.cnn.com/2018/06/21/technology/wayfair-vs-south-dakota/index.html</a><br />
<br />
<a href="https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/">https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/</a> along with a <a href="https://taxfoundation.org/supreme-court-brief-wayfair-internet-sales-tax/">discussion</a> of the brief they filed in this case<br />
<br />
<a href="https://www.avalara.com/us/en/blog/2018/supreme-court-rulesthatsouthdakotacantaxsalesbyoutofstatesellers.html">https://www.avalara.com/us/en/blog/2018/supreme-court-rulesthatsouthdakotacantaxsalesbyoutofstatesellers.html</a><br />
<br />
<a href="https://www.jdsupra.com/legalnews/south-dakota-v-wayfair-inc-what-it-98145/">https://www.jdsupra.com/legalnews/south-dakota-v-wayfair-inc-what-it-98145/</a><br />
<br />
<a href="https://www.jdsupra.com/legalnews/breaking-news-us-supreme-court-32978/">https://www.jdsupra.com/legalnews/breaking-news-us-supreme-court-32978/</a><br />
<br />
<a href="https://www.salestaxsupport.com/blogs/industry/small-business-ecommerce/with-quill-dead-you-could-now-have-sales-tax-nexus-everywhere/">https://www.salestaxsupport.com/blogs/industry/small-business-ecommerce/with-quill-dead-you-could-now-have-sales-tax-nexus-everywhere/</a><br />
<br />
<a href="https://www.avalara.com/us/en/blog/2018/06/states-to-watch-inthewakeofthesupremecourtruling.html?CampaignID=7010b000001Dqep&lso=Social&lsmr=Social&adbsc=core_quill_20180622_2418691&adbid=1010274979856838656&adbpl=tw&adbpr=19937859">This article, from Avalara, discusses the way states to watch in the near term</a><br />
<br />
Finally, I've also read the <a href="https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf">Supreme Court's opinion</a>. I'd encourage you to read it. It's interesting reading and not as difficult as you might think. Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-29327639120095258792017-05-19T14:34:00.000-07:002017-05-19T14:34:04.874-07:00NEW 44 new items posted in SALES TAX NEWS AND LINKS <a href="http://salestaxnews.blogspot.com/">http://salestaxnews.blogspot.com/</a>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-13317333.post-60988407752420490312017-02-27T08:51:00.000-08:002017-02-27T08:51:03.107-08:00I'm not sure how big of a deal this is, but we're number 69. Yay!Top 100 Tax Websites & Blogs For Tax Professionals & Payers<br />
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<a href="http://blog.feedspot.com/tax_blogs/">http://blog.feedspot.com/tax_blogs/</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-29408534816206777252017-01-24T09:50:00.000-08:002017-01-24T09:50:03.880-08:00Why do I have to pay sales tax on the car I bought from a guy on Craigslist?In my surfing adventures looking for material for <a href="http://salestaxnews.blogspot.com/">my other blog</a>, I often come across questions that people have asked on various online fora*. And sometimes they're grist for my blogging responsibilities.<br />
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The question is at the top of this article. Here's my poor attempt at an answer:<br />
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When you buy a car from a dealer, they are going to charge you sales tax on the sale of the car. I think we all kind of understand that. Easy. Unpleasant, and maybe a surprise, but nevertheless - we get it.<br />
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When you buy a <i>used </i>car from a dealer, they are still going to charge you sales tax on the sale of the car. "Whoa," you say, "what are you talking about? It's used! Sales tax already has been paid on that car."<br />
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It doesn't make any difference. You see, a common misconception is that sales tax is on the item being sold. It's actually <b>on the sale itself</b>. That's why it's called a <b>sales </b>tax. That car might keep getting traded in, and every time a dealer sells it, it's subject to sales tax.<br />
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However, there is another way you can buy a used car - from Jim on Craigslist. That's how I sold my 1997 Pontiac Grand Prix**<br />
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<a href="https://2.bp.blogspot.com/-YE55hFWUL3k/WIaR3R9k6YI/AAAAAAAD-Rk/9oF3Io0XCY0LRJSvs4okSVPxtpmP8EipgCLcB/s1600/car%2Bsmall.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://2.bp.blogspot.com/-YE55hFWUL3k/WIaR3R9k6YI/AAAAAAAD-Rk/9oF3Io0XCY0LRJSvs4okSVPxtpmP8EipgCLcB/s1600/car%2Bsmall.jpg" /></a></div>
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I put an ad on Craigslist and someone called within a couple of hours and handed me cash later that day. And I, as the seller, didn't have to charge Joe sales tax. And before you ask "why?" I'll tell you. Because I was making an <a href="http://salestaxguy.blogspot.com/search/label/Occasional%20Sales">occasional sale</a> (often called a casual sale). These are sales by sellers who are not in the business of selling the item being sold. Since I wasn't in the car sales business, I didn't have to charge tax on the sale of Eleanor (yeah, I called her Eleanor).<br />
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That's also why you don't have to charge tax when you have a garage sale - you're making an occasional sale.<br />
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But here's the thing. Cars are probably the most expensive thing that most of us will ever buy that's not <a href="http://salestaxguy.blogspot.com/2011/05/golden-rule-three-different-types-of.html">real property</a> (like a house). The state doesn't want to give up the sales tax just because Joe didn't buy the car from a dealer. But they also have trouble imposing the responsibility of charging the sales tax on me because I'm probably going to screw it up. Since I don't sell cars very often (like once every 20 years), I'm unlikely to know about a rule that says I have to collect the sales tax. So most states have an alternate plan. They collect the tax when Joe registers the vehicle and gets his new plates. Joe, of course, is surprised and complains about it on an internet forum. ***<br />
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So I, the seller, am off the hook. But Joe is in for a surprise when he goes to the DMV.<br />
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Finally, it's a technical matter, but the type of tax changes when you pay the state when you register the car. <b>Sales </b>tax is a tax on the <b>sale </b>of the car. But when the state can't impose tax on the sale, they have this other tax that plugs that loophole. It's called "<b>use</b> tax." This is a tax on Joe's <b>use </b>of the car. Some states will properly call it use tax. But others will call it a sales tax just so that Joe doesn't freak out thinking that the state is just making up taxes now.<br />
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* Yeah, I know the more usual word is "forums," but I just like the way "online fora" sounds. Trust me, I'm not trying to be a word snob. I'm not an elitist - I'm right down there with the rest of you people.<br />
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** I loved that car. It's the only car I've ever had where girls actually thought it was cool. Not me of course, but the car. Loved that car.<br />
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*** See, I can use regular people words too!<br />
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<br />
The Sales Tax Guy<br />
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the <a href="http://salestax-usetax.com/2111.html">disclaimer </a>- this is for education only. Research these issues thoroughly before making decisions. Remember: there are details we haven't discussed, and every state is different. <a href="http://salestaxguy.blogspot.com/2010/08/you-need-to-look-this-stuff-up-folks.html">Here's more information</a><br />
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Get these articles in your inbox - subscribe at <a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
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Don't forget our upcoming seminars and webinars.<br />
<a href="http://www.salestax-usetax.com/">http://www.salestax-usetax.com/</a><br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-52706755870328892992016-12-31T13:45:00.001-08:002016-12-31T13:49:27.641-08:00100 Must-Follow Tax Twitter Accounts For 2017<a href="http://www.forbes.com/sites/kellyphillipserb/2016/12/31/100-must-follow-tax-twitter-accounts-for-2017/#bef4783b61d0">http://www.forbes.com/sites/kellyphillipserb/2016/12/31/100-must-follow-tax-twitter-accounts-for-2017/#bef4783b61d0</a><br />
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Yay, we made the list again!Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-52919550429809110442016-11-07T10:29:00.001-08:002016-11-07T10:29:33.070-08:00Well, this is cool....<div class="separator" style="clear: both; text-align: center;">
<a href="https://1.bp.blogspot.com/-lwFDaKf8W3Y/WCDIArdpKuI/AAAAAAAD5q4/36haJpgwwxMD-4K4sY4lbfiduq87mWOeQCLcB/s1600/1000.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="203" src="https://1.bp.blogspot.com/-lwFDaKf8W3Y/WCDIArdpKuI/AAAAAAAD5q4/36haJpgwwxMD-4K4sY4lbfiduq87mWOeQCLcB/s320/1000.jpg" width="320" /></a></div>
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-87673418118907441222016-10-17T13:10:00.002-07:002016-10-17T13:10:31.177-07:00Our webinar schedule now includes a Rules and Policies event for EVERY STATE! Is that exciting or what!!! <div class="separator" style="clear: both; text-align: center;">
<a href="https://4.bp.blogspot.com/-7_nQCYFEJAI/WAUwLrZrC3I/AAAAAAAD3mo/oz4Hq0u38kE-7SOUvyCcnXj2bKPCIOP8ACLcB/s1600/371765675_6f01c923b3.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://4.bp.blogspot.com/-7_nQCYFEJAI/WAUwLrZrC3I/AAAAAAAD3mo/oz4Hq0u38kE-7SOUvyCcnXj2bKPCIOP8ACLcB/s200/371765675_6f01c923b3.jpg" width="134" /></a></div>
<a href="http://www.salestax-usetax.com/3301.html">http://www.salestax-usetax.com/3301.html</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-30663137512985932472016-01-29T11:29:00.002-08:002016-01-29T11:29:25.912-08:00And we get picked up by Google alerts....<div class="separator" style="clear: both; text-align: center;">
<a href="http://1.bp.blogspot.com/-SIpaMzSiP-c/Vqu9ghJxpwI/AAAAAAADpTc/fO_4o1GLJco/s1600/345901877_c651b61ec2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="http://1.bp.blogspot.com/-SIpaMzSiP-c/Vqu9ghJxpwI/AAAAAAADpTc/fO_4o1GLJco/s320/345901877_c651b61ec2.jpg" width="320" /></a></div>
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px;">
Well, this is exciting (to me, anyway). Yesterday, <a href="http://salestaxguy.blogspot.com/2016/01/sales-tax-webinar-schedule-announced.html">I posted on the blog</a> that the webinar schedule was announced through April 2016. And today, as I was going through my sales tax Google alerts, I came across the announcement.</div>
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I've never been picked up by Google alerts before.</div>
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Yay.</div>
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And yes, a portion of my day consists of looking for sales tax news on Google alerts.</div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-8319285470621872852016-01-06T06:19:00.002-08:002016-01-06T06:19:43.075-08:00Sales Tax Guy makes the 100 Must-Follow Tax Twitter Feeds In 2016<a href="http://www.forbes.com/sites/kellyphillipserb/2015/12/31/the-100-must-follow-tax-twitter-feeds-in-2016/">http://www.forbes.com/sites/kellyphillipserb/2015/12/31/the-100-must-follow-tax-twitter-feeds-in-2016/</a><br />
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The <a href="https://twitter.com/SalesTaxGuy">@salestaxguy</a> is listed again! Yay! And thanks to Kelly Phillips Erb <a href="https://twitter.com/taxgirl">@taxgirl</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-57040632177737693212015-07-17T09:03:00.000-07:002015-07-17T09:03:56.064-07:00Attention: Chicago does NOT have the highest sales tax rate in the US.Seems like there's a lot of sloppy writing going on in the last few days. <br />
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Yeah, Chicago's sales tax is (or will be) the highest for major cities in the US. But few of the headlines and tweets say that. What they say is that Chicago has the highest sales tax in America. <br />
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Actually, the last time I looked, Tuba City* Arizona (I've actually been there) has the highest rate at 12.725% Granted it's not a big city, but it is in America. <br />
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So please get your facts straight, folks! Or at least write more accurate headlines.<br />
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Sorry, this has been bothering me for the last couple of days.<br />
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Here are some links:<br />
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<a href="http://www.tucsonsentinel.com/local/report/090213_tuba_city_tax/small-town-big-tax-tuba-city-again-pays-nations-highest-sales-tax/">Small town, big tax: Tuba City again pays nation’s highest sales tax</a><br />
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<a href="http://www.azcentral.com/news/articles/2012/02/17/20120217tuba-city-sales-tax.html">Tuba City tops for sales tax</a><br />
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<a href="http://taxfoundation.org/blog/highest-sales-tax-united-states">Highest Sales Tax in the United States</a><br />
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<a href="http://cronkitenewsonline.com/2013/08/small-town-big-tax-tuba-city-pays-nations-highest-sales-tax/">Small town, big tax: Tuba City again pays nation’s highest sales tax</a><br />
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*The population is over 8,000 people, so it isn't a wide spot in the road. Heck, they've even got a McDonalds!<br />
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<hr width="50%" />
<br />
<br />
The Sales Tax Guy<br />
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars <a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a> and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a><br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-27691318751857370232015-07-16T08:48:00.000-07:002015-07-16T09:18:41.323-07:00The Issues Involving Food Taxability - it isn't THAT Weird<div class="separator" style="clear: both; text-align: center;">
<a href="http://1.bp.blogspot.com/-vqMBw8GwbKs/VafR650WVNI/AAAAAAADft4/m8Znbgp85IE/s1600/4860945543_8246c0e279.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="http://1.bp.blogspot.com/-vqMBw8GwbKs/VafR650WVNI/AAAAAAADft4/m8Znbgp85IE/s1600/4860945543_8246c0e279.jpg" /></a></div>
There is a lot written about the taxability of food. Most of it involves some "weird" rules with bloggers throwing up their hands in disbelief at how bizarre the world has become. <br />
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While I bow to no one in my belief that sales tax rules are frequently stupid and often corrupt, it's worth noting that some of the laws make sense, even if convoluted, when you consider what they're intended to accomplish.<br />
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Depending on the state, food is frequently an exception - either not taxable or taxed at a lower rate. However, our elected officials want to make sure that there are certain foods that are NOT treated in this special way. Because we just can't possibly let someone have a Coke or a Milky Way tax-free. Our beloved politicians know better than the poor huddled masses. Although why they are OK with letting us eat potato chips and ice cream is beyond me.<br />
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These "weird" rules involve two objectives:<br />
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1. The politicians have to figure out a way of differentiating nontaxable food from food that they have decided is bad for us and is therefore taxable. The most common items that are taxed differently are candy and pop (or soda). That means intricate rules to differentiate candy from cookies, and similar gyrations to separate juice from orange drink.<br />
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Frankly, I'm not sure why cookies should get a pass. They're just as bad for you as a nice Peanut Butter Cup. And Hostess products? C'mon. What's the difference between a delicious Snowball and a Baby Ruth, other than some flour?<br />
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Here's the Sales Tax Guy solution. If it's sweet, it's taxable. Period. People drink too much orange juice anyway - bad for your teeth.<br />
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2. Possibly even more complicated is differentiating restaurants, whose sales are universally taxable (sometimes even at a higher rate), from places that also sell groceries. This would include delis, bakeries, etc. who function as grocery stores, but also as restaurants. For example, there are rules that say that if someone is sold six donuts, it's not taxable. But if you buy just two, then you're obviously going to stuff your face with them right away. And our betters want to make sure you pay sales tax on them.<br />
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And the Sales Tax Guy solution? If they walk out the door with it, and it's not sweet, it's not taxable. Done. Bakeries may complain, but do you think I'm going to let a little thing like sales tax stand between me and my chocolate eclair? Really?<br />
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Ohio comes to close to this rule. If food is sold to be eaten off the premises, then it's not taxable. Simple. They complicate things with beverages, but it's still much simpler than any other state. <a href="http://salestaxguy.blogspot.com/2010/07/food.html">More about Ohio here.</a><br />
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There's a final rule that a few states have. This one is to make sure those nasty, icky businesses, who can't vote, don't get to take advantage of non-taxable food. In those states, they add "for home consumption only" to the criteria for exempt food. Or they'll do something else to insure that only individuals and families (voters) get to buy their food free from tax.<br />
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One solution to the whole problem is to make all food taxable. That REALLY simplifies things. But then you'd have people complaining that it just makes sales tax even more regressive. But that's a topic for my next post. <br />
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Or go with the Ohio method. Of course, that would mean the state would lose a lot of tax revenue - and we can't have that. But it would sure be less regressive - and really easy. And I'm thinking the voters would like it. Are you listening, politicians?<br />
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<hr width="50%" />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars <a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a> and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-45474785157977017582015-07-07T08:43:00.001-07:002015-07-07T08:43:31.127-07:00Yeah, you haven't heard from me in a while, now I'm going to start hitting you daily!Got my writing thing on, so you'll see more posts here. AND, I'll be posting a link here every time I update <a href="http://salestaxnews.blogspot.com/">Sales Tax News and Links</a> - which will be almost daily. If it's too much, feedback is appreciated. There are a LOT of smart people writing about sales tax these days, so I want to make sure you know about them.<br />
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Finally, if I find an article that is particularly worthwhile - one which I wish I had written, I'll keyword it with <a href="http://salestaxnews.blogspot.com/search/label/Recommended%20Read">"recommended read."</a><br />
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By the way, <a href="http://salestaxnews.blogspot.com/">I just posted 20 links today</a>. So there ya go. Enjoy.<br />
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Oh, and did I mention we're on <a href="https://www.facebook.com/salestaxguy">Facebook</a> now?<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-39544205658152432302015-06-26T11:24:00.000-07:002015-06-26T11:24:08.693-07:00So, how many returns DO you file?<a href="https://www.flickr.com/photos/jimfrazier/3439003291" title="Sign Away! by Jim Frazier, on Flickr"><img alt="Sign Away!" height="389" src="https://c2.staticflickr.com/4/3659/3439003291_1b5b0aecb2.jpg" width="500" /></a><br />
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As any good seminar leader will tell you, you need to get your audience interacting a little. Now a sales tax seminar doesn't lend itself to forming teams to build bridges, or walking around the room trying to figure out people's shoe sizes. But I do try, at least, to get them to raise their hands once in a while. <br />
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One of the things I do is poll the room to figure out the number of returns people file. This gives me an idea about the complexity of their businesses, and how sophisticated they are about sales taxes. So I start out saying "How many of you file returns in more than one state?" Usually about half the class raises their hand.<br />
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Then I ask, "How many of you file returns in more than 5 states?" Maybe a quarter of the class responds this time.<br />
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Then, "How many of you file in more than 10 states?" At this point, only a few hands go up.<br />
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Ever the adventurer, I continue, "How many of you file in more than 25 states?" Usually no hands go up. And if they do, I know that I have someone in the room who knows as much about sales and use taxes as me. So I proceed warily.<br />
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This time, I did see one person who was still holding up her hand. I asked her, "OK, how many states do you file in?"<br />
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She said, "45 states plus the District of Columbia - plus the local returns." In other words, ALL of them.<br />
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The audience gasped. I swear one newbie AP specialist fainted. But I digress.<br />
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"Wow. I'm impressed. So how many returns are we talking about?"<br />
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"Over 200 a month"<br />
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"And what software are you using?" Cause she has GOT to be using software, right? <br />
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"None, I do it all by hand - pen and paper."<br />
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At this point, a controller joined the AP specialist in a swoon. Heck, even I felt a little unsteady.<br />
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After I recovered, I stuttered, "Uh, how?"<br />
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"I just pull the numbers off the general ledger each month and drop them into the returns. I allocate about three days to do them all."<br />
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Later, I had a chance to chat with her. She had one manufacturing plant at their headquarters, and this particular state didn't have much in the way of manufacturing exemptions. And she sold a product that was pretty much universally taxable. The resale exemption was the only one she had to worry about. And she had nexus everywhere because they had reps wandering aimlessly around the country. So their business was pretty simple, relatively speaking. Aside from the unspeakable drudgery, I could see how she accomplished this amazing feat.<br />
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So my friends at Vertex SMB, Avalara and the other software companies are probably getting ready to email me and ask who is this heroic woman, that they might save her from her desperate situation.<br />
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Frankly, it was a while back. I just remember she was 10 feet tall and had very strong arms.<br />
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<br />
<hr width="50%" />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars.
<a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a>
and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a>
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<br />
Picture note: the image above is hosted on Flickr. If you'd like to see more, click on the photo.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-13317333.post-43944669424945558882015-06-25T08:56:00.001-07:002015-06-25T12:26:40.756-07:00So....we're...like...on Facebook now<div class="separator" style="clear: both; text-align: center;">
<a href="http://2.bp.blogspot.com/-d3a0cIi2gOM/VYwkAxN419I/AAAAAAADfHU/uPdDywO0zSc/s1600/F_icon.svg.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="http://2.bp.blogspot.com/-d3a0cIi2gOM/VYwkAxN419I/AAAAAAADfHU/uPdDywO0zSc/s200/F_icon.svg.png" width="200" /></a></div>
We've been on Twitter for a while, but finally decided that <a href="https://www.facebook.com/salestaxguy">Facebook </a>is OK too. Pretty much the same stuff that we post on Twitter (other than retweets) will get posted here. <br />
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So...like...enjoy.<br />
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Now we have to figure out Pinterest.....<br />
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Oh! I almost forgot!<br />
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<a href="https://www.facebook.com/salestaxguy">https://www.facebook.com/salestaxguy</a><br />
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There ya go.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-13317333.post-79356368745318260552014-07-29T09:09:00.000-07:002014-07-29T09:10:50.464-07:00Life Coaches?<a href="https://www.flickr.com/photos/jimfrazier/6235919255" title="Looking North on the Fox River - Fall I by Jim Frazier, on Flickr"><img alt="Looking North on the Fox River - Fall I" height="332" src="https://farm7.staticflickr.com/6118/6235919255_ffc72204b3.jpg" width="500" /></a><br />
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I got this question the other day, and since it combines a couple of issues, here ya go...<br />
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<b>"I am a life coach. I coach people in various states via phone or Skype. Are these services taxable? What if I physically go to a client location?"</b><br />
<br />
<i>First of all, are your services taxable?</i><br />
<blockquote class="tr_bq">
There are a few states where what you do is taxable. You need to research those states and see for yourself. Keep in mind that they may not use the term "life coaching". But look deeper at things like training, consulting and professional services. And a few states tax ALL services by default. So your services are going to be taxable somewhere.</blockquote>
<blockquote class="tr_bq">
This doesn't necessarily mean you have to tax the services that you perform over the phone or Skype. This only is necessary, for right now, if you actually have <a href="http://salestaxguy.blogspot.com/search/label/Nexus">nexus </a>in the state where the buyer is receiving the benefit of your services. Based on my assumption about your business model (I actually know a couple of life coaches), your only physical presence in a state is going to be YOU.</blockquote>
<i>Are you required to collect taxes in those other states?</i><br />
<blockquote class="tr_bq">
If you GO TO THAT STATE and perform services, do marketing, etc., you probably have nexus in that state. Which means you may have to collect that state's taxes (assuming your services are taxable in that state. </blockquote>
<blockquote class="tr_bq">
And if you subsequently perform your services online or on the phone, then you will need to collect taxes on your services for the states where you have nexus. </blockquote>
<blockquote class="tr_bq">
Note that, at some point in time, your nexus in a particular state will "wear out" if you don't revisit periodically. So you got that going for you, which is nice.</blockquote>
So, to summarize<br />
<br />
1. Your services may be taxable, depending on the state.<br />
2. In those states, if you go there and do work, you'll have to collect and pay the tax<br />
3. When you perform the services online after you've been to the state, you'll have to collect and pay the tax.<br />
<br />
Life sucks, doesn't it?<br />
<br />
<hr width="50%" />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars.
<a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a>
and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a>
<br />
<br />
Picture note: the image above is hosted on Flickr. If you'd like to see more, click on the photo.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-13317333.post-50752257963373139212014-07-01T15:01:00.000-07:002014-07-01T15:10:10.004-07:00What's taxable when it comes to photography?<a href="https://www.flickr.com/photos/jimfrazier/5262282120" title="I wonder if I'm holding it in the right direction by Jim Frazier, on Flickr"><img alt="I wonder if I'm holding it in the right direction" height="397" src="https://farm6.staticflickr.com/5127/5262282120_352abb1e4b.jpg" width="500" /></a><br />
<br />
<i>There was an link on <a href="http://salestaxnews.blogspot.com/2014/07/will-there-ever-be-tax-on-cloud.html">Sales Tax News and Links today</a> that brought up this topic. I actually wrote about this originally on July 16, 2009. Amazingly, the article needed little updating. But I have changed a few things and applied a little wordsmithing. So for you professional or semi-professional photographers out there, enjoy.</i><br />
<br />
<span style="font-weight: bold;">Photography services</span><br />
<br />
Most states don't broadly tax services - but some do. And photography is also considered the delivery of product (the prints), and that product is usually taxable as the sale of <a href="http://salestaxguy.blogspot.com/2011/05/golden-rule-three-different-types-of.html">tangible personal property</a>. However, these rules vary enormously from state to state. So you need to research what YOUR state does. <br />
<br />
For example, I'm in <i>Illinois</i>, and photography services aren't taxable. Even the delivery of the prints, if they're part of the photographer's service, like doing a wedding or a portrait session, are still not taxable. <br />
<br />
However, in <i>Wisconsin </i>(a popular vacation destination for people from Illinois in case <a href="https://www.youtube.com/watch?v=765b-T5P450">you've never seen Stripes</a>), most photographic services, including shooting those portraits and weddings, are taxable. I bet that just bummed out a bunch of photographers I know in Wisconsin.<br />
<br />
<span style="font-weight: bold;">Film or print processing</span><br />
<br />
Getting prints from the drug store is taxable in most states. It's the delivery of tangible personal property. And if you order prints online and they're delivered to you, you'll owe use tax if they don't charge tax. <br />
<br />
<span style="font-weight: bold;">Sale of prints</span><br />
<br />
Just like the sale of any other tangible personal property, sales of photographic prints (eg. at an art show) are taxable.<br />
<br />
<span style="font-weight: bold;">Delivery of images online</span><br />
<br />
In a few states, the delivery of pictures electronically is taxable. But while many states tax downloaded video, music and books, most states just haven't gotten around to photographs yet. But that will change over time. And the <a href="http://salestaxguy.blogspot.com/2009/06/sneaky-information-services-gambit.html">auditor might try to bluff you</a>, just for grins.<br />
<br />
And if you deliver the photographs on a flash drive or a DVD, then you've transferred tangible personal property, and the sale is no longer simply a transfer over the internet but a true sale of TPP. <br />
<br />
<b>Special tax breaks</b><br />
<br />
There are a few states that have special exemptions for the sale of art - and this usually includes fine art photography. Don't get excited though. Only a <i>few </i>states do this.<br />
<br />
<b>Here's the cool part</b><br />
<br />
If you're selling your taxable prints, then the paper and ink that you purchase is usually exempt as purchases for resale (or ingredients if you're thinking manufacturing). Heck, the inkjet printer might even be exempt as manufacturing equipment.<br />
<br />
<i>Please remember that, as you saw with Illinois and Wisconsin, the rules vary widely from state to state. You gotta look it up for your state. <a href="http://salestaxguy.blogspot.com/2007/10/golden-rule-every-state-does-it.html">Because it's going to be different there.</a></i><br />
<br />
<hr width="50%" />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars.
<a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a>
and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a>
<br />
<br />
Picture note: the image above is hosted on Flickr. If you'd like to see more, click on the photo.
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-13317333.post-80021868978501190082014-06-27T12:27:00.000-07:002014-06-27T12:32:29.799-07:00Golden Rule of Sales and Use Taxes: The Seven Factors that Determine the Taxability of Any Sale<a href="https://www.flickr.com/photos/jimfrazier/5022162952" title="Warning by Jim Frazier, on Flickr"><img alt="Warning" height="334" src="https://farm5.staticflickr.com/4147/5022162952_050dff87b6.jpg" width="500" /></a><br />
<h4>
What state has jurisdiction?</h4>
<br />
Generally, with few exceptions, the place where the buyer, or the buyer's agent, takes physical possession or control of the goods is the state that has jurisdiction. When it comes to services, it's a little messier. It's usually where the services were performed but sometimes it's where the buyer receives the benefit of the services. <br />
<br />
<i>This the first question you have to answer.</i> All of the other answers depend on the delivery state.<br />
<br />
If you're the seller, a corollary factor is whether you have nexus in the state. If you don't, then you probably don't have to worry about the rest this article. Yay!<br />
<br />
<h4>
</h4>
<h4>
</h4>
<h4>
Who is the buyer, or the seller?</h4>
<br />
In most states, there are exemptions for sales to non-profits and government agencies. And there are usually more limited exemptions for sales <i>by</i> these types of organizations. In addition, there are often very specific exemptions for certain organizations who have managed to gain special deals based on how wonderful the politicians think they are. <br />
<br />
By the way, you'll usually need exemption certificates for this factor.<br />
<br />
<h4>
</h4>
<h4>
How will the purchase be used?</h4>
<div>
<br />
There are exemptions for organizations using the purchase for manufacturing, agriculture, research and development, etc. Or the buyer may not use it at all, which means it's being bought for resale. </div>
<div>
<br /></div>
<div>
By the way, you'll usually need exemption certificates for this factor as well.<br />
<br /></div>
<h4>
</h4>
<h4>
</h4>
<h4>
Where will the purchase be used?</h4>
<div>
<br />
Many states establish geographic areas within the state (I generically call them enterprise zones) where there are loads of exemptions. In addition, there are variations within a state, based on local jurisdiction rules. I don't even want to go there. I'm looking at you, Colorado.<br />
<br /></div>
<h4>
</h4>
<h4>
</h4>
<h4>
When will the purchase be used</h4>
<div>
<br />
Many states have sales tax holidays for things like clothing, school supplies, guns, energy saving appliances and hurricane supplies. These holidays are usually only for a limited amount of time - a weekend in most cases. Then you also have to keep in mind that politicians change their minds. Or want to limit the amount of the damage they do. So there are always effective dates when new laws go into effect. And there are often sunset dates on laws, particularly exemptions.<br />
<br /></div>
<h4>
</h4>
<h4>
</h4>
<h4>
What is the type of the sale?</h4>
<div>
<br />
Is it a rental or long term lease? Is it a simple sale or installment sale? Is it a gift? Or perhaps it's an occasional sale? And if it's an occasional sale, is it a business that's selling or buying? <br />
<br /></div>
<h4>
</h4>
<h4>
</h4>
<h4>
What is being sold?</h4>
<div>
<br />
Finally, there are exemptions for things based solely on what the purchase is. Is it food or drugs? In a few states, clothing is exempt. Maybe it's an intangible. And of course, just about any service you can name is taxable somewhere.</div>
<br />
<hr width="50%" />
<br />
The Sales Tax Guy
<a href="http://salestaxguy.blogspot.com/">http://salestaxguy.blogspot.com</a><br />
<br />
See the disclaimer on the right.<br />
<br />
Don't forget our upcoming seminars and webinars.
<a href="http://www.salestax-usetax.com/"> http://www.salestax-usetax.com</a>
and there's more sales tax news and links here <a href="http://salestaxnews.blogspot.com/"> http://salestaxnews.blogspot.com</a>
<br />
<br />
Picture note: the image above is hosted on Flickr. If you'd like to see more, click on the photo.
Unknownnoreply@blogger.com0