Sales Tax Update: April 2013 · – Affiliate nexus law expanding definition of nexus – Law...
Transcript of Sales Tax Update: April 2013 · – Affiliate nexus law expanding definition of nexus – Law...
Upcoming Events
• Webinars:• June 6, 2013 - 10AM PST (2PM EST)
– Understanding Nexus to Avoid Unexpected Liability
• Events:• April 7 – 11: Oracle Applications User Group
• May 14 – 16: ASUG/SAPPHIRE Annual Conference 2013
• May 20 – 22: ACT Annual Conference
REUTERS
Today’s Agenda• Thomson Reuters Overview
• Amnesty Programs
• Amazon Laws
• April Rate Changes
• Current Events
• Upcoming Sales Tax Holidays
• Q & A
Please be aware that NO CPE credit is offered with today’s presentation.
REUTERS
Customer focusGlobal scale and presenceFinancial strength and stability
GLOBAL CAPABILITIES. LOCAL STRENGTH.
• Since formed in 2008 the Thomson Reuters brand is ranked 39 out of 100 in Global Brand Recognition.
• A recognized company• Look at last years annual report • 2010 Revenues:
US $13.1 Billion • 2010 Operating Profit:
$1.4 Billion
• Global presence to better serve multi-national corporations
• Over 50,000 employees in more than 100 countries
• Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals
• We do this by investing in state of the art technology,
• designing solutions that integrate with customer workflows,
• and investing in people so that our solutions are designed by experts like you.
THE THOMSON REUTERS ADVANTAGE
BUSINESS OVERVIEW:ONESOURCE INDIRECT TAX
• Thomson Reuters formed the ONESOURCE Indirect Tax product line from 3 renowned brands to deliver an end-to-end automated solution for managing the indirect tax compliance lifecycle:
TAX DETERMINATION: Sabrix (Sabrix, Inc. acquired by Thomson Reuters in December 2009)
SALES & USE TAX COMPLIANCE: ONESOURCE Sales & Use Tax
VAT COMPLIANCE: Abacus VAT
INDIRECT TAX SOLUTION OFFERINGDOMESTIC
COMPLIANCEU.S. AND CANADA
GLOBALTAX
DETERMINATION
VATCOMPLIANCE
Sales & Use TaxCompliance
RegulatoryCompliance
Consulting
TaxCertificateManager
Reporting
Sales & Use Tax,VAT Determination
Calculation
Global Tax Content & Research
ERP Integrations(i.e. SAP, Oracle)
Consulting Services
Reporting
Data import and consolidation
Working papers and data analysis
Manual adjustments
Returns, eFiling and reconciliation
Amnesty Programs
• Kentucky: – October 1, 2012 through November 30, 2012– Mid-February, state released revenue stats
• San Jose: – December 1, 2012 through May 31, 2013– City Business Tax Amnesty Program
Amnesty Programs
• Ohio– October 1, 2011 through May 1, 2013– Consumer’s use tax amnesty program
• Ohio, Tennessee and Utah via SSUTA– October 1, 2005 through 12 months after full SST
membership– Limited amnesty for unregistered sellers
Amazon Laws
• Amazon laws aim to collect sales tax for internet sales from companies who otherwise lack sufficient nexus to require them to collect sales and use tax on their Internet sales. They’re named after the biggest online retailer that the law targets.
• Many states are starting to refer to these laws as “click-through-nexus” laws.
Amazon Laws – First Legislation
• New York – First to pass Amazon law in 2008
• North Carolina and Rhode Island– Passed similar versions in 2009
• Colorado and Oklahoma– Expanded nexus presumption for out-of-state retailers– Added noticing requirements
Amazon Laws – 2011
• Arkansas– Click-through-nexus legislation effective October 25, 2011
• Connecticut – Click-through-nexus legislation effective May 4, 2011– Lower gross receipts threshold
• Illinois– Click-through-nexus legislation effective July 1, 2011– April 2012: Law ruled unconstitutional
Amazon Laws – 2011
• South Dakota– Affiliate nexus law expanding definition of nexus– Law included notice and reporting requirements
• Vermont– Delayed implementation: Effective only after 15 other
states adopt click-through-nexus laws
Amazon Laws – 2012
• Arizona– Amazon started collecting tax on TPP February 1, 2013– Tax on digital products starting July 1, 2013
• California– 2011 Amazon legislation repealed for one year– New effective date: September 15, 2012
• Colorado– Direct Marketing Association v. Colorado DOR– March 30th: Permanent injunction blocking enforcement of
notice and reporting provisions of nexus law
Amazon Laws – 2012
• Georgia– Click-through-nexus legislation effective October 1, 2012– Higher gross receipts threshold: $50,000 annually
• Indiana– Agreement with Amazon to start collecting tax in 2014– Amazon to have four distribution centers in the state
• Massachusetts– Agreement with Amazon to start collecting tax in 2013– Governor supports federal legislation
Amazon Laws – 2012
• Nevada– Amazon to start collecting tax in 2014– State expects additional $16 million in revenue
• New Jersey– Agreement with Amazon to start collecting tax in 2013– Amazon to build two new distribution warehouses
• Pennsylvania– Pennsylvania Sales Tax Bulletin 2011-01, 12/01/2011– Remote e-commerce sellers collecting tax September 1,
2012
Amazon Laws – 2012
• South Carolina– Agreement with Amazon to start collecting tax in 2016– Amazon to invest $125 million in distribution center
• Tennessee– Agreement with Amazon to start collecting tax in 2014– Amazon to invest $350 million in TN
• Texas– Agreement with Amazon to start collecting tax in 2012– Amazon to invest $200 million in TX
Amazon Laws – 2012
• Utah– Affiliate nexus legislation– Expanded types of sellers who are required to collect tax
• Virginia– Affiliate nexus legislation– Agreement with Amazon to collect tax September 1, 2013– Amazon to open two distribution centers in VA
Amazon Laws – 2013
• Connecticut– Amazon law effective May 2011– Amazon cut ties with affiliates in state – no tax remitted– Agreement to begin collecting tax November 1, 2013
• Florida– SB 316: Affiliate nexus and click-through-nexus provisions– Bill revises definition of “mail order sale”
• Maine– LD 346 and LD 319: Affiliate nexus and click-through-
nexus provisions
Amazon Laws – 2013
• Michigan– HB 4202 and HB 4203: Affiliate nexus and click-through-
nexus provisions
• Minnesota– SF 8: Typical Amazon tax language– Effective date: June 30, 2013
• New York– New York Court of Appeals: Amazon should not be
exempt from collecting state sales tax– Amazon to take its case to the U.S. Supreme Court
Amazon Laws – 2013
• West Virginia– HB 2754: Affiliate nexus bill– Seeks to expand definition of “retailer engaging in
business” in the state effective June 1, 2013
• Marketplace Fairness Act of 2013– Act introduced February 14, 2013– March 22: Senate included Act in budget resolution– Resolution is non-binding; tax will need to be addressed in
other legislation
Tax Rate Changes: Alabama
Authority Name Previous Rate New RateAL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Agricultural Sales Rate Only)
0.25% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Agricultural Use Rate Only)
0.0% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Automotive Sales Rate Only)
0.25% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Automotive Use Rate Only)
0.0% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Manufacturing Sales Rate Only)
0.25% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Manufacturing Use Rate Only)
0.0% 0.375%
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Sales Rate Only) 1.0% 1.5%
Tax Rate Changes: Alabama (Continued)
Authority Name Previous Rate New Rate
AL - Carbon Hill Police Jurisdiction, City Sales/Use Rate (Use Rate Only) 0.0% 1.5%
AL - Carbon Hill, City Sales/Use Rate (Agricultural Sales Rate Only) 0.5% 0.75%
AL - Carbon Hill, City Sales/Use Rate (Agricultural Use Rate Only) 0.0% 0.75%
AL - Carbon Hill, City Sales/Use Rate (Automotive Sales Rate Only) 0.5% 0.75%
AL - Carbon Hill, City Sales/Use Rate (Automotive Use Rate Only) 0.0% 0.75%
AL - Carbon Hill, City Sales/Use Rate (Manufacturing Sales Rate Only) 0.50% 0.75%
AL - Carbon Hill, City Sales/Use Rate (Manufacturing Use Rate Only) 0.00% 0.75%
Tax Rate Changes: Alabama (Continued)
Authority Name Previous Rate New Rate
AL - Carbon Hill, City Sales/Use Rate (Sales Rate Only) 2.0% 3.0%
AL - Carbon Hill, City Sales/Use Rate (Use Rate Only) 0.0% 3.0%
AL - Margaret Police Jurisdiction, City Sales/Use Rate (Agricultural Sales and Use Rate)
1.0% 0.5%
AL - Margaret Police Jurisdiction, City Sales/Use Rate (Manufacturing Sales and Use Rate)
1.0% 0.5%
AL - Margaret Police Jurisdiction, City Sales/Use Rate (Sales Rate Only) 1.0% 2.0%
AL - Margaret Police Jurisdiction, City Sales/Use Rate (Use Rate Only) 1.0% 0.5%
AL - Margaret, City Sales/Use Rate (Agricultural Sales/Use Rate) 2.0% 1.0%
Tax Rate Changes: Alabama (Continued)
Authority Name Previous Rate New Rate
AL - Jemison, City Sales/Use Tax (Sales Tax Only) 3.0% 4.0%
AL - Jemison Police Jurisdiction, City Sales/Use Tax (Sales Tax Only)
1.5% 2.0%
Tax Rate Changes: Alaska
Authority Name Previous Rate New Rate
AK - Seldovia, City Sales Tax Tiered Rate: 2.0%; Invoice Amount up to $500.00
Tiered Rate: 4.5%; Invoice Amount up to $500.00
AK - Sitka, Borough/City Sales Tax Tiered Rate: 5.0%; Invoice Amount up to $1,500.00
Tiered Rate: 6.0%; Invoice Amount up to $1,500.00
AK - Skagway, Borough Sales/Use Tax 3.0% 5.0%
AK - Whittier, City Sales Tax 0.0% 5.0%
Tax Rate Changes: Arkansas
Authority Name Previous Rate New Rate
AR - Dermott, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 2.0%; Invoice amount up to $2,500.00
Tiered Rate: 2.5%; Invoice amount up to $2,500.00
AR - Dermott, City Sales/Use Tax (Max Tax - Sales Tax and Max Tax - Seller’s Use Tax)
Tiered Rate: 2.0%; Item amount up to $2,500.00
Tiered Rate: 2.5%; Item amount up to $2,500.00
AR - Dermott, City Sales/Use Tax (Sales and Seller’s Use Tax) 2.00% 2.50%
AR - Devalls Bluff, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 2.0%; Invoice amount up to $2,500.00
Tiered Rate: 3.0%; Invoice amount up to $2,500.00
AR - Devalls Bluff, City Sales/Use Tax (Max Tax - Sales Tax and Max Tax - Seller’s Use Tax)
Tiered Rate: 2.0%; Item amount up to $2,500.00
Tiered Rate: 3.0%; Item amount up to $2,500.00
AR - Devalls Bluff, City Sales/Use Tax (Sales and Seller’s Use Tax) 2.00% 3.00%
Tax Rate Changes: Arkansas (Continued)
Authority Name Previous Rate New Rate
AR - Garland, County Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 1.125%; Invoice amount up to $2,500.00
Tiered Rate: 1.5%; Invoice amount up to $2,500.00
AR - Garland, County Sales/Use Tax (Max Tax - Sales Tax and Max Tax - Seller’s Use Tax)
Tiered Rate: 1.125%; Item amount up to $2,500.00
Tiered Rate: 1.5%; Item amount up to $2,500.00
AR - Garland, County Sales/Use Tax (Sales and Seller’s Use Tax) 1.125% 1.50%
AR - Independence, County Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 1.5%; Invoice amount up to $2,500.00
Tiered Rate: 2.0%; Invoice amount up to $2,500.00
AR - Independence, County Sales/Use Tax (Max Tax - Sales Tax and Max Tax - Seller’s Use Tax)
Tiered Rate: 1.5%; Item amount up to $2,500.00
Tiered Rate: 2.0%; Item amount up to $2,500.00
AR - Independence, County Sales/Use Tax (Sales and Seller’s Use Tax)
1.50% 2.00%
Tax Rate Changes: Arkansas (Continued)
Authority Name Previous Rate New Rate
AR - Ola, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 1.0%; Invoice amount up to $2,500.00
Tiered Rate: 2.0%; Invoice amount up to $2,500.00
AR - Ola, City Sales/Use Tax (Max Tax - Sales Tax and Max Tax -Seller’s Use Tax)
Tiered Rate: 1.0%; Item amount up to $2,500.00
Tiered Rate: 2.0%; Item amount up to $2,500.00
AR - Ola, City Sales/Use Tax (Sales and Seller’s Use Tax) 1.00% 2.00%
Tax Rate Changes: Georgia & IndianaAuthority Name Previous Rate New Rate
GA - Pike Educational, County Sales/Use Tax 0.0% 1.0%
GA - Rockdale Educational, County Sales/Use Tax 1.0% 0.0%
GA - Treutlen Special Purpose, County Sales/Use Tax 0.0% 1.0%
Authority Name Previous Rate New RateIN - Marion, County Rental Tax (Automotive Rental Tax) 4.0% 6.0%1
Tax Rate Changes: KansasAuthority Name Previous Rate New Rate
KS - Abilene, City Sales/Use Tax 0.85% 1.1%
KS - Augusta, City Sales/Use Tax 1.0% 2.0%
KS - Hays, City Sales/Use Tax 2.25% 1.75%
KS - Marysville, City Sales/Use Tax 1.0% 1.6%
KS - Mission, City Sales/Use Tax 1.25% 1.625%
KS - Norton, City Sales/Use Tax 0.5% 1.25%
KS - Osage City, City Sales/Use Tax 1.0% 1.5%
KS - Riley, County Sales/Use Tax 0.5% 1.0%
Tax Rate Changes: Minnesota & MissouriAuthority Name Previous Rate New Rate
MN - Hermantown, City Sales/Use Tax 0.5% 1.0%
Authority Name Previous Rate New RateMO - Blue Ridge Town Centre Transportation Development District, District Sales/Use Tax (Sales Tax Only)
0.5% 0.625%
MO - Boone, County Sales Tax 1.125% 1.375%
MO - Boonville, City Sales Tax 1.5% 2.0%
MO - Concordia, City Sales Tax 2.0% 2.25%
MO - Gerald, City Sales Tax 1.5% 2.5%
Tax Rate Changes: Missouri (Continued)
Authority Name Previous Rate New RateMO - Imperial Main Community Improvement District, District Sales/Use Tax
1.0% 0.0%
MO - Jackson, City Sales Tax 1.75% 2.0%
MO - Johnson, County Sales/Use Tax 2.0% 2.25%
MO - Johnson, County Sales/Use Tax (Utility Sales and Use Tax) 2.0% 2.25%
MO - Lake Ozark (Camden Co), City Sales Tax 2.5% 2.75%
MO - Lake Ozark (Miller Co), City Sales Tax 2.5% 2.75%
MO - Moniteau, County Sales Tax 1.5% 1.75%
MO - Sarcoxie, City Sales Tax 2.0% 2.5%
Tax Rate Changes: NebraskaAuthority Name Previous Rate New Rate
NE - Alma, City Sales/Use Tax 1.5% 2.0%
NE - Bennington, City Sales/Use Tax 1.0% 1.5%
NE - Sargent, City Sales/Use Tax 1.0% 1.5%
NE - Verdigre, City Sales/Use Tax 1.0% 1.5%
NE - Waterloo, City Sales/Use Tax 1.5% 2.0%
Tax Rate Changes: N. Carolina & N. DakotaAuthority Name Previous Rate New Rate
NC - Edgecombe County Sales/Use Tax 2.0% 2.25%
NC - Greene County Sales/Use Tax 2.0% 2.25%
Authority Name Previous Rate New RateND - Crosby, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 1.0%; Invoice amount up to $2,500.00.
Tiered Rate: 2.0%; Invoice amount up to $2,500.00.
ND - Crosby, City Sales/Use Tax (Sales and Seller’s Use Tax) 1.0% 2.0%
ND - Stanley, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 1.0%; Invoice amount up to $2,500.00.
Tiered Rate: 1.5%; Invoice amount up to $1,666.67.
ND - Stanley, City Sales/Use Tax (Sales and Seller’s Use Tax) 1.0% 1.5%
ND - Tioga, City Sales/Use Tax (Consumer’s Use Tax)
Tiered Rate: 2.0%; Invoice amount up to $1,250.00.
Tiered Rate: 2.5%; Invoice amount up to $1,000.00.
ND - Tioga, City Sales/Use Tax(Sales and Seller’s Use Tax) 2.0% 2.5%
Tax Rate Changes: OklahomaAuthority Name Previous Rate New Rate
OK - Blaine, County Sales/Use Tax 0.5% 0.75%
OK - Carter, County Sales/Use Tax 0.25% 0.75%
OK - Coal, County Sales/Use Tax 1.0% 2.0%
OK - Healdton, City Sales/Use Tax 3.5% 4.0%
OK - Johnston, County Sales/Use Tax 1.25% 1.5%
OK - Locust Grove, City Sales/Use Tax 3.0% 4.0%
Tax Rate Changes: Oklahoma (Continued)Authority Name Previous Rate New Rate
OK - Moore, City Sales/Use Tax 3.5% 3.75%
OK - Payne, County Sales/Use Tax 0.75% 0.813%
OK - Pontotoc, County Sales/Use Tax 0.6875% 0.875%
OK - Stephens, County Sales/Use Tax 0.55% 0.7%
OK - Tahlequah, City Sales/Use Tax 2.5% 3.25%
Tax Rate Changes: Texas
TX - Baird, City Sales/Use Tax 1.5% 2.0%
TX - Freer, City Sales/Use Tax 1.5% 1.75%
TX - Ivanhoe, City Sales/Use Tax 0.25% 1.25%
TX - Krum, City Sales/Use Tax 1.75% 1.5%
TX - Lyford, City Sales/Use Tax 1.0% 2.0%
TX - Nevada, City Sales/Use Tax 1.75% 1.5%
TX - San Antonio, City Sales/Use Tax 1.125% 1.25%
TX - Yorktown, City Sales/Use Tax 1.5% 1.25%
Tax Rate Changes: UtahAuthority Name Previous Rate New Rate
UT - Centerfield, City Sales/Use Tax 1.0% 1.1%
UT - Gunnison, City Sales/Use Tax 1.3% 1.4%
UT - Mayfield, City Sales/Use Tax 1.0% 1.1%
UT - Park City East, City Resort Community Sales/Use Tax 1.1% 1.6%
UT - Park City, City Resort Community Sales/Use Tax 1.1% 1.6%
Tax Rate Changes: Washington
WA - Castle Rock TBD, City Sales/Use Tax 1.1% 1.4%
WA - Cowlitz County Unincorporated Areas, County Sales/Use Tax
1.1% 1.2%
WA - Kalama, City Sales/Use Tax 1.1% 1.2%
WA - Kelso, City Sales/Use Tax 1.4% 1.5%
WA - La Conner, City Sales/Use Tax 1.7% 1.8%
WA - Longview, City Sales/Use Tax 1.4% 1.5%
Tax Rate Changes: Washington (Continued)
WA - Lynden TBD, City Sales/Use Tax 2.0% 2.2%
WA - Mill Creek, City Sales/Use Tax 3.0% 3.1%
WA - Okanogan City, City Sales/Use Tax 1.2% 1.3%
WA - Olympia, City Sales/Use Tax 2.2% 2.3%
WA - Sedro Woolley, City Sales/Use Tax 1.7% 1.8%
WA - Woodland, City Sales/Use Tax 1.2% 1.3%
Tax Rate Changes: WyomingAuthority Name Previous Rate New Rate
WY - Converse, County Sales/Use Tax 1.0% 2.0%
WY - Fremont, County Sales/Use Tax 0.0% 1.0%
WY - Sweetwater, County Sales/Use Tax 1.0% 2.0%
Current Events
• Federal Medical Device Excise Tax• Applies to manufacturers, producers and importers
• 2.3% excise tax on sales of medical devices
• H.R. 523: Protect Medical Innovation Act of 2013
• Idaho: HB 250 elimination of tax on Girl Scout cookies
• Kentucky:• No local sales tax – only state sales tax
• SB 30: Proposes constitutional amendment to allow local option sales taxes
Current Events
• Massachusetts– Governor announced budget proposal– Decrease in state sales tax rate– Expansion of sales tax base
• Ohio– Governor’s FY 2014-15 budget bill– Proposal to tax all services with limited exclusions
Current Events
• Tennessee– Most food items currently taxed at reduced rate– HB0484 and SB0550 propose to exempt unprepared food
• Vermont– H.0528 to impose sales tax on candy, soda, dietary
supplements and bottled water – Information sheet issued regarding tax on remotely
accessed prewritten software
Tax Holidays: AprilState Effective
DatesExemptionAmount
General Category
Missouri and all participating local
jurisdictions
4/19/2013 -4/25/2013
$1,500.00 or less per item
Purchase of Qualified Energy Star Products