May 2022 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.

Nuts and bolts

A helpful tax holiday for Puerto Rico. To encourage residents to prepare for the upcoming hurricane season, which promises to be a doozy, Puerto Rico is providing a sales tax holiday for hurricane preparedness supplies. At first, it seemed it would occur the last weekend in May, but at the last minute, the Secretary of Treasury said it would start June 17, 2022. Learn more.

Convenience comes at a cost. Third-party delivery apps became a staple for many consumers during the height of the pandemic, and their use continues to grow. Unfortunately, retailers and third-party delivery providers aren’t always clear on who’s responsible for collecting and remitting applicable taxes. Learn more.

Hidden costs to adventuring. Some workers may never return to traditional offices, preferring to work remotely from locales near and far instead. That opens up a world of opportunities — and potential tax obligations. Learn more.

Making sales tax compliance more taxing. Florida is providing an astounding array of sales tax holidays in 2022. Some will last less than a week, some will run for two years. Qualifying products will be entirely exempt during the tax-free period, but potentially only partially exempt during certain tax holidays. Retailers are sure to find these sales tax holidays taxing. Learn more.

Prices are rising. Some say inflation is like a tax on consumers or investors. It can certainly impact tax policy. Learn more.

Stay alert. Given the new sales tax holidays in Florida and Puerto Rico, we’ve updated our state-by-state guide to sales tax holidays in 2022. Learn more.

The end of free deliveries? All taxable sales delivered by motor vehicle to a Colorado address will be subject to a new $0.27 retail delivery fee starting July 1, 2022. It’s expected to generate close to $17 million during its first fiscal year. Learn more.

This is happening. A growing number of governments worldwide are imposing electronic invoicing (e-invoicing) and real-time reporting requirements on businesses. Learn more.

From CRUSH Global

The following posts recap some of the main themes of Avalara CRUSH Global, a virtual conference focusing on the impacts of changing government policy and accelerating technology on business and tax compliance.

Fewer products and people. Companies are struggling to keep shelves stocked and schedules full. Technology can help. Learn more.

Global success doesn’t happen without forethought. There are global opportunities for businesses today, but capturing them requires a good deal of up-front planning — particularly with respect to tax compliance. Learn more.

It’s inevitable. It won’t be easy and it won’t be fast, but eventually, most governments will establish e-invoicing and real-time reporting mandates. Learn more.

Keep your distance. Lockdowns and travel restrictions related to COVID-19 compelled lodging businesses to accelerate technology adoption. Learn more.

Pure poetry. Accounting is the language of business, data is the lifeblood of digital transformation, and digital transformation should be part of every company’s DNA. Learn more.

From the pump

Drive. New York is suspending taxes on gasoline and diesel fuel from June 1 through December 31, 2022. Learn more.

Remember “Baywatch” and Blockbuster Video? The systems many energy businesses rely on today are about as modern as PalmPilots. It’s time for companies to start thinking about replacing them. Learn more.

From the tap

A big market for small distillers. Direct shipping privileges in California may soon be extended to certain craft distilleries. However, the market will likely remain closed to large producers. Learn more.

Less can be more. As consumer interest in low- and no-alcohol beverages grows, producers may be tempted to stretch the health benefits of their products on labels or in advertisements. But the Federal Alcohol Administration Act prohibits such false or misleading claims. Learn more.

To register or not to register? For now, wineries in need of a winery direct shipper license in Tennessee must first register with the Tennessee Secretary of State. That requirement may soon be eliminated. Learn more.

From the wire

Education vs. entertainment. A new deal linking Discovery and WarnerMedia will likely have a big impact on streaming content. It could also inspire state and local governments to search for new ways to recoup the tax revenue lost from cutting the cable. Learn more.

Up in smoke

More power to the FDA. A new law regulating the use of synthetic nicotine in smoking products will create new compliance hurdles for the industry. Learn more.

Check out the Avalara resource center for more helpful information.

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