November 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

Sweet (tax) relief for manufacturers. As of July 2022, the state of Vermont has expanded a sales tax exemption for manufacturers to include machinery and equipment used on the job. This means that supplies like forklifts and label makers purchased by manufacturers in the Green Mountain State are exempt from sales tax. Their next challenge? Exemption certificate management.

Treat(y) yourself. Is your business receiving preferential tariff treatment? Should it be? If your home country has a treaty agreement with another country, you could get a deal on tariffs. Learn more about what a preferential treaty is and whether it's worth it for your business to look into getting preferential treatment.

New year, new nexus. If you sell goods to consumers in Missouri, your tax obligations are likely going to look a little different starting January 1, 2023. In this blog, we show you the ins and outs of economic nexus and how the new laws will affect your business in the Show-Me State.

I had to look up what a floppy disk is in a dictionary. Apparently, it’s some type of outdated tech, like a fax machine, or one of those phones you had to lug around in a briefcase. Many of the gadgets and gizmos we once used in our day-to-day lives have gone digital, and that change has huge tax implications when it comes to selling software and SaaS internationally. Consider this post your international tax compliance instructional booklet.

It’s beginning to look a lot like holiday shopping season. For retail owners in the U.S. and the U.K., holiday sales started earlier, staffing needs have shifted, and the need to invest in new technology to manage it all has become clear. Avalara and Censuswide surveyed 1,002 retail business leaders and 2,026 consumers across the U.S. and the U.K. to get a better sense of how retail has changed in the last year and how business owners and shoppers alike are reacting to it.

But what if my California cup of coffee is wearing a fur coat from Pennsylvania? From clothes in Pennsylvania to a cup of coffee in California, tax laws across the nation can be complicated, confusing, and yes, even wacky. Get the answers to some of the zaniest tax questions with this Wacky Tax Wednesday post.

Winning isn’t everything (but we’ll happily take the trophy). It’s official, Avalara has been named Oracle NetSuite 2022 SuiteCloud Partner of the Year. This is the most prestigious annual award for members of the SuiteCloud Developer Network, and we’re honored to be this year’s recipient. We’re also printing out and framing all the nice things our partners at NetSuite said about us, but you can read them here.

Tax-free snack attack. Soon (if not already), groceries shoppers in Kansas, Illinois, and Virginia will be able to save on their weekly grocery trips. Find out which states are phasing out or cutting grocery sales tax completely, and which states are still considering it.

Eliminating grocery tax in the Mount Rushmore State? South Dakota taxes just about every retail transaction, including food sales. But some South Dakotans are trying to change that. Find out more about this heated battle and why some voters are against the change.

Someone has to pay taxes on those YouTube ads. The states of Maryland and New Mexico are trying to enforce a digital advertising tax (with varying levels of success). Learn how New Mexico is defining digital advertising for tax purposes and all the ways the Free State is trying to live up to its nickname.  

Location, location, location. If you own property, you’re likely familiar with property taxes. But where did they come from? How do they apply to assets like farms and boats? And importantly, how do you stay compliant when filing property taxes for your business?

Ship happens. You know those boxes piling up on doorsteps across the country? Someone may have had to pay delivery tax on those. In general, if the contents of the shipment are taxable, so are the charges to ship it, whether it arrives by truck, freight, or bike messenger. Brush up on your delivery tax knowledge with this state-by-state guide.

It’s our favorite time of year. For us, Avalara Tax Changes season holds all the excitement of our birthday, a day at a theme park, and the last day of school. Get a first look at the annual report and learn about key issues facing businesses today.

From the tap

Raise a glass to new nexus laws. On January 1, 2023, Missouri’s economic nexus laws take effect. This means big changes for direct-to-consumer (DTC) wineries and alcohol marketplaces that ship into the Show-Me State. Until recently, out-of-state beverage alcohol shippers were not required to collect sales and use tax. Here’s what you need to know if you’re ringing in the new year in Missouri with a shipment of bubbly.

Reduce, reuse, and recycle your wine and spirits bottles in California. As of January 1, 2024, wine and spirits bottles in California will be subject to a bottle fee (joining beer and wine coolers). This bottle fee is paid by the manufacturers and distributors — including direct wine shippers — of the qualifying bottles and helps to fund California’s recycling program.

From the pump

It’s not easy being green. In an effort to curb the effects of climate change, federal, state, and even local governments are talking about alternatives to gas-powered transportation. Until we can zip around in a Jetsons-style flying car, that means electric vehicles. We take a look at what a switch to electric vehicles means for fuel tax revenue, the electricity grid, and the environmental costs of vehicle production.

From the wire

More confusion in more places. Communications taxes can be complicated at the best of times. Between the number of agencies, rates, fees, and differing definitions of what constitutes “communications,” they can be downright confusing. Some states take it a step further —– learn which states will have you tangled up in the cords when it comes to tax compliance.

From the accounting desk

A shortage of accountants. You’re likely noticing “now hiring” signs in the windows of all your favorite places — the local used bookstore, the coffee shop you visit every morning, and now your accounting firm. That’s right — even the fine folks that file your taxes every year are short-staffed. We look at what’s causing this lack of CPAs and how firms are adjusting.

Check out the Avalara resource center for more helpful information.

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It’s here — Read Avalara Tax Changes 2023

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