September 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

Tis the season? Next month, voters in Josephine County, Oregon, will decide whether to enact a seasonal local sales tax. This would be the first of its kind in the Beaver State. Find out what types of sales would be exempt if this proposal passes.

To tax or not to tax? Just because a state doesn’t have a general statewide sales tax doesn’t mean you’re off the hook as a buyer or seller in that state. Get the facts (and read the fine print) about the NOMAD states.

Leaves (and tax rates) are changing. Cozy up with a snuggly blanket, a hot cider, and your favorite spooky sound effects party record — it’s time for quarterly sales and use tax rate changes.

Crunching the numbers. Have you been managing tax compliance for your business with duct tape and hope? It may be costing you more than you think. Find out if it’s time to call in the professionals.

The grocery tax suspension. The normal grocery tax in Illinois is suspended through June of next year, which is great if you’re stocking up on celery salt and relish for your Chicago-style hot dog. But some retailers are making mistakes at the register. Make sure you're not making these sales tax errors.

Keeping the customers happy. Consumers pay attention to things like daily specials, doorbuster deals, and sales tax, and they’ll absolutely let you know if they spot a mistake on their receipt. Make sure you get your tax rates right before you end up in court over a bag of cheesy treats.

Location, location location. Until recently, having inventory stored in a Pennsylvania warehouse was enough to establish a sales tax obligation for out-of-state marketplace retailers. The Online Merchants Guild v. Hassell decision changed that. Find out how this ruling might affect your FBA (Fulfillment by Amazon) business.

Arts, crafts, and web sales. Are you a small business owner who uses Etsy to sell your artisan jewelry, handcrafted ornaments, or, made-with-love matching sweaters for cat lovers and their feline companions? Here’s how you can increase traffic to your store (just in time for the holiday shopping season).

501(c) complexities. There’s a lot to consider when you start a nonprofit — how to entice donors, recruit volunteers, and pick a T-shirt color that looks good on everyone. Here’s how you can stay sales tax compliant through it all.

This one’s on me. Businesses in West Virginia can now foot the bill for sales tax rather than pass it on to the consumer. Since July 2021, the Mountain State is one of 15 states that allow businesses to absorb sales tax costs. Learn more about Senate Bill 661.

For everything there is a season, even sales tax. Whether they’re called seasonal taxes or resort taxes, they typically come out to be the same thing: a tax levied on certain goods or services during a specific time of year, usually enacted with the goal of capturing more revenue from tourists. Find out where you can count on spending a little more on your annual vacation.

Insurance goes digital. It seems like every industry is making changes to adapt to our increasingly online world, and insurance is no exception. With access to timely and accurate data, insurers can estimate accident risk and repair costs. Tesla (yes, the car company) is already making waves in the insurance technology space.

Sales tax 101. We talk a lot about sales tax — it’s kind of our thing. But what is it, exactly? And what do you need to know to begin complying with your sales tax obligations? We’ve answered your most pressing questions.

From the tap

Raise a glass to year-end compliance. The last few months of the year are a busy time for direct wine shippers. Make sure you add compliance tasks like license renewal and product registration to your to-do list (and check it twice).

Three cheers for the Centennial State. This fall, three beverage alcohol initiatives are up for a vote in Colorado. Initiatives 96, 121, and 122, if passed, will loosen restrictions on sales or deliveries of alcoholic beverages. Find out if you should get the nice glassware (or red SOLO cups) out to celebrate.

From across the pond

Tax goes digital. Starting November 1, 2022 (or 1 November, if you’re reading this from the United Kingdom), all U.K. VAT-registered businesses will have to use Making Tax Digital and MTD-compatible software to file their VAT returns. Those who aren’t set up with the right software will have to outsource preparation and filing of their VAT returns or risk noncompliance. Learn more about this development.

From the accounting experts

Are you keeping transfer pricing at an arm’s length? We get it, the idea of adding transfer pricing services to your accounting firm offerings can be daunting. This complex service is increasingly in demand, but can be costly to outsource or headache-inducing to manage manually. Avalara Transfer Pricing Reports for Accountants may be just what you’re looking for.

Check out the Avalara resource center for more helpful information.

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