Deck the halls with... sales tax?

Welcome back, trash enthusiasts.

Today, we’re diving into (1) recent sales tax news, (2) festive product taxability rules 🎄, and (3) a question from you.

Because what screams ~happy holidays~ more than sales tax?

RECENT SALES TAX NEWS

1️⃣ New York recently revised a product taxability law and replaced references to “Feminine Hygiene Products” and “Sanitary Napkins” to be more focused with “Menstrual Products” or “Pads”

Meanwhile, the SST made changes that would allow for more inclusive treatment of feminine hygiene products (i.e., more exemptions for more items used during menstruation).

2️⃣ Maryland tried to dismiss Apple’s challenge against digital ad tax, but was denied. The case will continue…

ABC, Google and Amazon are among many others who are suing the state too.

3️⃣ States need to be more careful about discriminatory taxes on electronic commerce especially as MTC looks to sync state tax rules for digital transactions.

Otherwise, the federal Internet Tax Freedom Act will be called upon.

4️⃣ Colorado has just revised its sales and use tax exemption forms.

Make sure you are using the right ones.

5️⃣ Maryland and Illinois are increasing the interest rates on underpayments next year.

In better news, Virginia and Arizona announced that their’s are staying the same, at least for Q1.

6️⃣ A CFO in California was personally liable for his company's unpaid California sales and use tax liabilities.

He was found to have sufficient authority and control over the corporation to be considered responsible during the tax years at hand.

7️⃣ A new bill in New York may reduce the sales tax rate for small businesses.

At the same time, New York is allowing counties to tax short-term rentals.

8️⃣ In New Jersey and Alabama, business owners were penalized with additional taxes for not maintaining adequate records for the audit.

9️⃣ Maryland will waive penalties & interest and extend the deadline for those impacted by Israel-Hamas war.

DON’T UNDERSTAND SALES TAX?

Ask for a sales tax audit & assessment to help you understand your liability exposure - free for subscribers.

You can also check out a Free Sales Tax Guide.

Learn how Zamp helped Hogan and the Gravity Grabber team - link.

THE GIFT THAT KEEPS ON GIVING 🎁

Decorating for the holidays? You most likely have to pay sales tax on that Christmas tree.

Unless you’re in Mississippi, where they passed a 2016 law making Christmas trees a non-taxable transaction—but only if they’re cut and sold at the same time and place.

Pennsylvania attempted to exempt Christmas trees sold on Christmas tree farms from sales tax. It didn’t pass, and some referred to it as the “Don’t Be a Scrooge” bill.

New York proposed a “Go Green” sales tax holiday where evergreen products like Christmas trees would have been non-taxable... but this wasn’t successful either.

One thing we all know about sales tax: it’s the gift that keeps on giving (whether we like it or not).

Learn more about US product taxability → 

PARTNER SPOTLIGHT

Bean Ninjas offers best-in-class bookkeeping, accounting, virtual CFO, and tax services for 7 and 8-figure eCommerce businesses looking to scale. They’re specialists in Shopify, Woo Commerce, Amazon and Omni-Channel businesses.

Interested? Just reply to this email and I can make an intro.

YOUR QUESTIONS, ANSWERED!

Q (Ravi): Do I have to participate in all sales tax holidays?

A: In some states, sales tax holidays are mandatory but other states allow retailers to opt-in or out. Most states won’t penalize you for giving them more money.

However, it’s worth considering that you could potentially lose customers to competitors who are honoring the sales tax holiday, which can have other long term ramifications.

More info on sales tax holidays here.

Thank you for reading along. I’ll be back next month with more sales tax shenanigans.

In the meantime, wishing you an amazing holiday season ahead.

If you enjoyed this one, please share it with your network. 🤝

If you found it helpful, reply back and let me know. I live for the people.

If you have any feedback, suggestions or questions, please let me know by responding to this email or DM me on Twitter or LinkedIn.

Until next time’s 🗑 …

Rohit & the Zamp team