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August 2021 Roundup: Sales tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your tax compliance.

Tax policy updates for August are as varied as summer vacation plans and include tax amnesty, tax registration requirements, and more. Read on for details.

Taxing times

Keep it already.

Some restaurants in Connecticut can keep a week’s worth of sales tax thanks to an unconventional sales tax relief program for certain “sellers of meals.” For other businesses, the Constitution State is offering a traditional tax amnesty program. Learn more.

 

There’s more to Hawaii than beaches and hula.

Most transactions in the Aloha State are subject to general excise tax (GET), though some are taxed at the standard 4% rate while others are subject to a reduced rate. The rate of tax for custom and canned software depends on the nature of the transaction. Learn more.

 

Snap!

Although most states tax at least some digital products and services, it’s often difficult for taxpayers to determine which transactions are taxable and which are exempt. The lack of clarity can lead to contention, as a recent case involving digital photography in Mississippi illustrates. Learn more.

 

Taxing online sales

Sorry about that.

In-state marketplace sellers in Illinois can now apply for a credit to rectify an oversight that led some marketplace transactions to be taxed twice. Learn more.

 

Take your time.

Remote sellers now have an additional 30 days to register with the Kentucky Department of Revenue for sales tax after establishing an obligation to collect. Learn more.

 

Nuts and bolts

Keep up with the times.

Not for the first time, there’s a call to expand Nebraska sales tax to more services. Proponents argue sales tax policy should reflect changes in consumer habits. Learn more.

 

The devil is in the details.

Managing business licenses involves much more than keeping track of renewal dates. Learn more.

 

Start with a solid foundation.

To build a construction company in any state, you need to understand and comply with state and local contractor license requirements. Learn more.

 

Get directly to the point.

Direct selling companies can establish a sales tax collection obligation in any state where their contractors do business. Sometimes the in-state representative is liable for the tax, and sometimes the direct selling company must collect and remit tax on behalf of their representatives. Learn more.

 

It’s not too early to plan for the holidays.

Although the pandemic makes it difficult to forecast the future, supply chain and staffing challenges make advance planning paramount. Learn more.

 

Beyond the border

Not on my watch.

Trade restrictions can protect domestic companies or workers from foreign competition. They can also create hurdles for importers, exporters, and travelers. Learn more.

 

From the tap

Don’t let it drive you to drink.

Some of the top compliance challenges facing beverage alcohol sellers today center on cocktails to go, economic nexus, fulfillment houses, and third-party providers. Learn more.

 

Keep your shirt on.

Most Americans can have wine shipped to their door, but residents of Delaware must still don shirt and shoes then visit a winery in person to receive a direct-to-consumer shipment. That could soon change. Learn more.

 

From the wire

The pitfalls of heightened connectivity.

Successfully navigating communications regulatory and tax challenges requires expertise, geocoding, and due diligence. Learn more.

 

Up in smoke

Clearly seeing obstacles in the way.

With new products, surging ecommerce sales, and the Prevent All Cigarettes Trafficking (PACT) Act, tobacco and vapor regulations are shifting like clouds of smoke. Learn more

 

Wacky tax roundup

Less pain for me, more pain for you.

Though prepaid return labels may woo reluctant online shoppers, they can create tax compliance challenges for sellers. Learn more.

 

Check out the Avalara resource center for more helpful information.

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