Wednesday, December 02, 2009

Sales and Use Tax News

These are gleanings from newsletters, etc. I have not included all of the events, nor have I provided much detail. As usual, the disclaimer applies - check this kind of thing out yourself. I just want to give you a heads-up.

Illinois court rules freight charges were taxable. Illinois has a pretty confusing rule regarding the taxability of freight charges. The law says the shipping charge must be "separately contracted." But I've read different and conflicting illustrations.

A test that the court applied is whether or not the customer bought the item and the shipping charge in one transaction. If they did, the shipping is taxable.

Another is whether they can avoid the shipping charge in some way, either by picking it up at the store or buying it online and then separately contracting for shipping. If they can, it's an indication that the freight isn't taxable.

For example, when you buy from your average dot com, do you have any option to avoid shipping? If you don't, then, in Illinois, the shipping is taxable.

Kean v. Wal-Mart Stores, Ill. S. Ct., Dkt. No. 107771, 11/19/2009

And in Chicago, the continuing sales tax saga - the rate goes down by half a point. Suntimes.com and others

There are lots of articles floating around focusing on the loss of taxes to the states from people buying online and not paying their sales tax and/or use tax. LOTS. Here's just one of them And about 1400 more.

College privilege tax in Pittsburgh? salestaxbuzz.com

Local rate changes

Utah
Washington

Sales Tax Guy

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