Archive for August 2018
Georgia Temporary Museum Exemption
Georgia has enacted a temporary and refundable exemption applying to the purchases of construction materials by qualifying museums. The exemption starts on July 1, 2018 and sunsets on December 31, 2020. This exemption applies to both state and local sales and use taxes. This exemption is refundable and has a cap on state and local…
Read MoreGeorgia Guidance Issued on Services, Software, and Online Courses
The Georgia Department of Revenue has issued a ruling addressing whether software-based online training products to serve as communications tools for organizations are taxable. The Taxpayer addressed in the guidance sells licenses to its online educational courses and online course hosting services on its learning management system. Purchases include a course license or hosting as…
Read MoreBLUNT WRAPS NOT TAXABLE IN FLORIDA
For several years, I have been heavily involved with wholesale tobacco tax throughout the country. On April 6, 2016, the 1stDCA spoke loud and clear by determining that a blunt wrap or cigar wrap (a “Wrap”) product is not subject to Florida tax. This is a giant step towards putting an end towards at least…
Read MoreRemote Sellers Must Collect Maine Sales Tax Effective July 1, 2018
Effective July 1, 2018, Maine joined several states in response to the Supreme Court’s Wayfair case by requiring remote sellers to collect sales tax when certain economic thresholds are met. In Wayfair, the Supreme Court of the United States reversed the longstanding “physical presence” rule that it had established in the 1992 case of Quill…
Read MoreMinnesota Court Rules Separately Stated Federal Excise Tax Not Subject to Tax
Across the country, there has been a debate as to whether state tobacco tax applies to federal excise tax. For example, in 2012, a Florida court in Micjo Inc v Florida DBPR, ruled that the wholesale sales price upon which tax is calculated does not include federal excise tax or shipping charges. Since 2012, we…
Read MoreBLUNT WRAPS MAY NOT BE SUBJECT TO STATE TAX IN ILLINOIS
Despite the well-known and proven ideology that the legislature holds the power to declare taxability of particular items, the Colorado Department of Revenue (“CDOR”) and Florida Department of Revenue (“FDOR”) went above and beyond their own reach in attempting to broaden the taxability of tobacco products, specifically blunt wraps. The Florida appellate court, for example,…
Read MoreARE MARIJUNA TAXES GOING UP IN SMOKE?
Over the past few years, several states have begun legalizing marijuana. Normally, the citizens of these states vote on a ballot measure, notably to add the legalization of marijuana as a state constitutional amendment. For instance, Colorado has legalized recreational and medical marijuana. Based on this legalization, Colorado has various sales taxes and excise taxes…
Read MoreRemote Sellers Must Collect New Jersey Sales Tax Effective October 1, 2018
Effective October 1, 2018, New Jersey is jumping on the bandwagon of states responding to the Supreme Court’s Wayfair case to require remote sellers to collect sales tax when certain economic thresholds are met. In Wayfair, the Supreme Court of the United States quashed the requirement that a company or vendor have a physical presence…
Read MoreALASKA, ILLINOIS, UTAH TOP LIST FOR NEW TOBACCO TAX REFUND OPPORTUNITY!
There are constantly new refund opportunities for tobacco wholesalers or distributors. Armed with a successful refund theory that got taxpayers back tens of millions in New York, we are eager to get money back in other states as well. The theory used in New York was a simple one. In most states, such as New…
Read MoreWhat to Expect During a Texas Tax Audit
The Texas Comptroller of Public Accounts (“Comptroller”) sends out audit letters almost every day to businesses. These letters inform the business of the audit to be conducted by the Comptroller’s Office. Unfortunately, this type of letter is only the beginning of a very long and possibly expensive process. The key is to be well-informed of…
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