February 2024 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 

Trending: Sales tax holidays. There are already nearly 40 sales tax holidays in 24 states scheduled for 2024, but some state legislators think that’s not enough. See which tax holidays Florida, Mississippi, New Jersey, and other states are considering adding for the year ahead.

Think pink (tax). The pink tax, though not a traditional “tax,” refers to gender-based tax discrimination or price disparities for goods and services. Learn more about the pink tax and what some states, including Maryland, Mississippi, and South Carolina are doing to lessen the burden on shoppers.

Tax cuts in the Sunflower State. There are two bills bouncing around the Kansas Legislature that would introduce tax changes to the state. HB 2284 would establish a flat 5.25% individual income tax, provide property tax relief, and speed up the tax exemption on food. HB 2586 is similar, but it maintains the state’s graduated income tax rates. Learn more about the battle of the bills.

Building blockchain taxability. There are a lot of questions around the taxability of blockchain technology, starting with “what is a blockchain?” Get the answers to your most burning questions

Let’s get digital (advertising). Some states are looking to tax digital advertising services, including Maryland and Nebraska. Since this is a relatively new landscape, states are taking many different approaches to taxability. 

What’s the use (tax)? We’re excited to announce Avalara AvaTax for Accounts Payable, a new tax solution that empowers businesses to manage use tax compliance. Learn how this solution works and what it can do for your business.

Prepare to be taxed on prepared food. On February 13, 2024, a new sales and use tax law took effect in the Mitten State that redefines “prepared food” for tax purposes. The taxability of your morning muffin might change if you get it warmed or to go with napkins. 

Adding compliance to your CRM. If you’re not using a Customer Relationship Management (CRM) system, you’re missing out on a lot of cool features, including an integration with tax compliance management software. Find out how Salesforce and Avalara team up to simplify online commerce.

This little tax compliance challenge went to the marketplace. Sales tax compliance can be a challenge for any business. But when you add in multiple ecommerce retailers, a vast array of products, and customers all over the world, the challenge gets a little more … challenging

Miscellaneous changes. The threshold for some 1099 forms is changing; the United States House of Representatives passed H.R. 7024 in January, which among other things, sets the new threshold for 1099-MISC and 1099-NEC at $1,000 beginning January 2024. Learn more about what could change (and what could stay the same) with this new bill.   

The A word. Audits aren’t fun, but they shouldn’t be scary. We dive into the basics of sales tax audits and what to do if your business ever gets audited

Registration 101. Congrats on starting your new business! Hope you like paperwork — you’ll have to register your new venture with the appropriate local, state, and federal agencies, and you may need to register to collect sales tax. Here’s what you need to know.

Put down the web search browser, there’s a better way. The first step to getting tax compliance right is getting the right answers to your tax questions. Learn how the right tax research tool can help.

Business tasks can be pretty taxing. 45 states (plus Washington D.C., Puerto Rico, and parts of Alaska) have general sales tax. And if you’re doing business in any of those areas, you’re going to need to know how to calculate, collect, and pay sales tax. This blog post can help. 

Land of 10,000 Lakes … and one new retail delivery fee. Minnesota is following in Colorado’s footsteps: Starting July 1, 2024, deliveries of certain retail sales of tangible personal property will have a 50-cent delivery fee, including, in some cases, clothing. Of course, nothing about tax is quite that simple — read all about the new fee. 

From the property tax desk

Mergers and acquisitions and property tax. There’s a lot to consider when an enterprise merges with or acquires another company, like fitting new desks into the office and updating hundreds of email signatures. M&A activity can affect property tax assessments too.

From the accounting tax desk

E-invoicing and you. Specifically you, an accounting professional. E-invoicing mandates are already in effect in several countries around the world, and U.S. businesses would be smart to get on board. Here’s how you can help your clients get into the e-invoicing game.

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