Diapers are a luxury item 💎

Happy Sunday my trash lovers.

It’s August and you know what that means? Heat waves, NFL pre-season and tax changes.

Many notable sales tax changes took effect on July 1… and July filings are due in August, so… this month, we’ll see who’s on the mark and who isn’t. States will be sorting the sheep from the goats.

Hint: this time you don’t want to be the goat, trust me.

Given the macro climate, seems like they’re tired of playing around. No more carrot, just the stick. Let’s see what the states have been piling in the trash:

• States with no sales tax ❌ 

• Midwest states cracking down 🚨 

• “Diapers are a luxury” 💎 

• Meme of the week 😂 

• Q from you - “Do foreign companies pay sales tax?” 🙋‍♀️

First, some good news 🙏 

I talk a lot of trash about sales tax rules in different states... but how about the states with NO sales tax? Music to your ears, huh?

These are your NOMAD states: New Hampshire, Oregon, Montana, Alaska, and Delaware. These 5 states have no state sales tax.

Key disclaimer (as with any tax rule): select transactions in each state are subject to tax.

No wonder millions of Americans flock to these states to save $$$

BTW... if you're moving, consider Alaska & New Hampshire… they have no income taxes either.

The ultimate guide to US sales tax → 

🚨 Midwest states cracking down 🚨 

Starting January 1, Illinois may deny or refuse to issue or renew certificates of registration for businesses with past due returns. Meaning you could have issues doing business in the state. They are not messing around…

SaaS founders beware - Michigan has issued guidance saying precedent allows the state to tax software that is downloaded or can be stored locally.

As of July 1, in Minnesota, edible cannabinoid products are subject to an additional 10% state cannabis tax. This is on top of the 6.875% state’s general sales tax rate AND any local sales taxes. 😳 

In Indiana, the state denied a nonprofit a tax refund on an out-of-state car purchase.

“Diapers are a luxury” 💎 

27 states currently charge sales tax on diapers as “luxury necessities.”

At the state level, the sales tax can be as low as 4% or as high as 7%. In many states, cities and counties can add additional tax. 💰

On July 1, Indiana's sales tax holiday on diapers ended.

BUT the tide is turning…

On July 1, North Dakota removed the diaper tax for children's diapers (adult ones are already untaxed lol).

Texas also follows suit on September 1st.

Who even comes up with these trash rules? I hope they’re not parents…

Learn more ridiculous product taxability rules →

😎 First, the meme of the week 😎

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🙋‍♀️ You ask, we answer 🙋‍♂️

Q (Eliza from UK): We are a foreign company, do we have to pay sales tax?

A: If you have achieved physical or economic nexus within a state, then yes, you are liable to file & remit sales tax in that state.

It is important to note that state tax laws are different than federal income tax laws. Take proactive action by getting a nexus study to mitigate any exposure.

Struggling with Sales Tax?

This veteran team of sales tax experts will answer all your questions and address any concerns for no charge.

If you need a sales tax assessment, tell them you came from Trash Talk and they’ll throw in a nexus study for free.

Get sales tax off your plate today.

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

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

If you caught a laugh, 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 week’s 🗑 …

Rohit