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What is the Definition of Nexus?
Sales Tax After Wayfair In June 2018, the Supreme Court of the United States made a ruling in South Dakota vs. Wayfair that changed sales tax law forever. Why? The short answer is: internet sales. Remember the first time you purchased something on Amazon and realized you didn’t have to pay sales tax? Like many…
Read MoreCalifornia Continues Fulfill FBA Sales Tax Assessments
Since 2017, California’s Department of Tax and Finance Administration (CDFTA), formerly the Board of Equalization, has been bombarding businesses that use Amazon’s FBA services for sales tax liabilities. Many Amazon sellers received an email in October 2018 reminding them that California has their company’s name, address, and EIN. Sellers that were already registered and collecting…
Read MoreCannabusinesses Create Issues for Property Appraisers
The cannabis industry laws are extremely volatile. This is mainly a result of cannabis being a new industry, with a trial and error type of lawmaking process. To date, marijuana is legal in one form or another in 33 states. This new area of law, coupled with county property appraisers’ broad authority, creates an unstable…
Read MoreWhat Does the 2019 Farm Bill Mean for the Hemp Industry?
Earlier this year, U.S. Sen. Mitch McConnell inserted language from his Hemp Farming Act of 2018 into the Farm Bill to federally legalize the cultivation and sale of industrial hemp. Congress passed the legislation Dec. 12, effectively removing hemp from the list of controlled substances and allowing states to regulate its production, commerce and research…
Read MoreTobacco Tax Audit/Refund
As cigarettes and other tobacco products are taxed on both the federal and state level, the tax compliance burdens are steep. The tobacco tax scheme is very different from other tax schemes because the product is taxed both at the federal and state level. Further, depending on the type of tobacco product being sold the…
Read MoreMedical Marijuana Dispensaries Tax Liability Clarified in Harborside Case
A long-awaited decision came out in the end of November that affects all cannabis businesses. In this case, the Tax Court denied a California medical-marijuana dispensary’s deduction of ordinary and necessary business expenses and some of its costs of goods sold. This decision serves to provide more clarification for cannabis businesses, CPAs, and tax attorneys…
Read MoreTexas Sales & Use Tax Guide for Aircraft
Aircraft are a complex piece of machinery. Aircraft tax issues are even more complex, creating a tax minefield for the unwary. If a taxpayer navigates carefully, they can potentially come out with a reduced, or zero, tax liability for the aircraft. However, the slightest wrong move will leave the most careful owner with a sizeable…
Read MoreGeorgia Guidance Issued on Application of Sales and Use Tax for Charges for Market Research Reports and Services
Georgia has issued guidance LR SUT-2017-11 addressing whether market research reports and services are subject to Georgia sales tax. Specifically, the Department opined on the taxability of basic reports, online services, and custom studies. The Taxpayer requesting guidance is a market research company for the construction of new homes. Taxpayer has no offices in Georgia…
Read MoreGeorgia Provides Guidance on Sales Tax Obligations for Certain Remote Sellers
The Georgia Department of Revenue issued a guidance on remote sellers’ impending sales tax obligations beginning January 1, 2019. Similar to several states, following the Supreme Court’s Wayfair ruling, Georgia has enacted economic nexus provisions applicable to certain remote sellers. Effective January 1, 2019, certain remote sellers must either remit Georgia sales tax on their…
Read MoreNevada Establishes Economic Nexus Thresholds
Like so many other states, Nevada has established an economic nexus threshold following the U.S. Supreme Court’s Wayfair decision. The Supreme Court previously ruled that an out-of-state seller’s liability to collect and remit the tax to the consumer’s state depended on whether the seller had a physical presence in that state, but that mere shipment…
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