December 2021 Roundup: 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.

Which sales into Kansas will trigger a sales tax obligation? What does it take to successfully navigate Louisiana’s Byzantine sales tax system? Is a business license required to sell online? This month’s roundup delves into these issues and more.

Avalara launches 2022 tax changes report

It’s probably impossible for one report to cover every aspect of transaction tax compliance, but Avalara Tax Changes 2022 tries. Learn more.

Nuts and bolts

A balm for back taxes.
Businesses and individuals with back tax liability in Connecticut can “get right” by participating in a tax amnesty program that concludes January 31, 2022. Learn more.

Axing the tax on food.
Not for the first time, lawmakers in Kansas are seeking to eliminate the sales and use tax on food for home consumption. Learn more.

Check your connections.
Before rushing to register for sales tax in a new state, consider whether you have any prior tax exposure with that state. Learn more.

Credits and rebills and complaints, oh my!
Poorly managed sales tax exemption certificates can hinder customer satisfaction and retention for small and emerging businesses. Learn more.

License, please.
There’s a good chance you’ll need at least one business license if you’re planning to sell goods or services online. Learn more here and here.

Registration, please.
There’s a difference between licensing a business and registering a business for sales tax. Learn more.

Rate changes.
Sales and use tax rate changes took effect in approximately 20 states on January 1, 2022. Learn more.

Setting small businesses up for success in 2022.
The start of a new year is a good time for small businesses to check your sales tax pulse. Learn more.

The devil is in the details.
To maintain compliance, merchants must ensure all sales are taxed at the proper rate. This can be tougher than you might think. Learn more.

Too costly for one tax rate.
Some local tax jurisdictions in Arizona tax certain big-ticket sales at two different tax rates: one for the first portion of the retail sale, and one for any cost above a certain threshold. In Phoenix, that cutoff is now $11,631. Learn more.

Taxing online sales

Remote sales tax laws clarified in Kansas …
After initially insisting all remote sales into Kansas were subject to applicable sales and use taxes, the Sunflower State developed an exception for out-of-state businesses selling beneath an economic nexus threshold. The Kansas Department of Revenue recently clarified which remote sales count toward that threshold. Learn more.

… and Ohio.
Similarly, the Ohio Department of Taxation has updated an FAQ page to clarify which sales remote sellers must count when calculating Ohio’s economic nexus threshold. Learn more.

Cookie tax law reduced to crumbs.
The Massachusetts Appellate Tax Board has determined computer cookies do not, in an of themselves, create a physical presence in the commonwealth. Learn more.

Louisiana’s Byzantine sales tax requirements.
Sales and use tax compliance in Louisiana is complicated by the fact that there’s no statewide sales and use tax collection system, and each parish can have unique sales and use tax exclusions and exemptions. Learn more.

Sales tax doesn’t have to be forever.
Can a remote business cancel its sales tax registration if sales drop below the state’s economic nexus threshold? It depends. Learn more.

Untangling local tax obligations in California.
Not every seller is required to collect every district tax in California. Whether you do hinges on several factors, including inventory, business location, and sales volume in the state. Learn more

From the tap

How old are you?
Beverage alcohol sellers must verify the age of consumers to ensure alcohol doesn’t fall into the hands of minors. Unfortunately, age verification policies vary from state to state. Learn more.

Make a list. Check it twice.
Sellers of beverage alcohol must complete certain compliance-related tasks each year. Learn more.

States grapple with alcohol delivery.
With many states now allowing delivery and takeout sales of alcohol, there’s a growing need to clarify what third-party providers can and can’t do. Learn more.

From the pump

Resurrected Superfund taxes to fund cleanup.
The Biden administration has resurrected the Superfund, which was created in 1980 to fund the cleanup of thousands of hazardous waste sites across the United States. This will likely lead to the reimplementation of an excise tax on a host of products used by chemical, gas, oil, and other industries. Learn more.

Check out the Avalara resource center for more helpful information. 

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