Less than 30 days away... are you prepared? ⏰

Welcome back, trash enthusiasts. And happy fall! 🍁

It’s about that time of the year… Black Friday and Cyber Monday deals are taking over. And that means more sales tax risk for businesses.

Luckily, we’ve got you covered with (1) sales tax updates, (2) what you can do to stay sales tax compliant during BFCM, and (3) a Q&A below.

SALES TAX NEWS

1️⃣ In California, the Department of Tax and Fee Administration (CDTFA) now serves electronic notices of determination and jeopardy determination for sales tax penalties. The unremitted tax threshold for penalties has changed to $1,500 per month or 25% of the tax liability for the period the tax was due.

2️⃣ Effective January 1, 2025, Alaska will no longer consider transaction count when determining economic nexus.

3️⃣ Massachusetts is holding a tax amnesty program from November 1 to December 30, 2024. The state will waive most penalties for eligible taxpayers who file outstanding returns and pay tax and any interest owed for tax periods with returns due December 31st.

4️⃣ In Nebraska, the state launched Good Life districts with alternate state and local sales tax rates. These districts were created to distribute sales tax dollars fairly within some regions.

5️⃣ An Ohio court ruled that the owner of a cleaning company is liable for unpaid sales tax, even though he wasn’t directly involved in the business’s day-to-day operations. The court stated that a responsible party “may not simply delegate away his or her responsibilities to escape liability.”

6️⃣ Initiated Measure 28 in South Dakota would prohibit the state from taxing anything sold for human consumption, except alcohol and prepared food. Policymakers temporarily cut the sales tax rate from 4.5% to 4.2%, with the rate reduction set to expire in mid-2027.

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HOLIDAY SHOPPING IS IN FULL SWING 🫣

Black Friday and Cyber Monday are just around the corner. Is your business ready to handle the influx of transactions and sales tax responsibilities?

Zamp found that e-commerce businesses had a lot of concerns around the upcoming shopping season in our September 2024 survey. 

Nearly 40% of the 1,000 respondents were concerned about handling increased transaction volume, while 23% were worried about the accuracy of their tax calculations.

With an increase in sales comes an increased risk of staying sales tax compliant. Here’s what you can do to ensure your business is ready for the holiday season:

1. Ensure your tracking is set up for sales

2. Know and track nexus thresholds where you’re operating and doing business

3. File your state sales tax returns on time

Want to know more about staying compliant during the biggest and busiest shopping season? 👇

Check out our deep dive into surviving BFCM →

PARTNER SPOTLIGHT

Punch Financial is more than a strategic partner; they help small business owners with reliable and innovative bookkeeping and financial services. You’ll find proven financial and business expertise to guide you on your journey so you can grow to new heights.

Ready to take your business to the next level? Get in touch or reply to this email for a direct intro to their team.

YOUR QUESTIONS, ANSWERED!

Q (Naomi): Is a resale certificate the same as an exemption certificate?

A: Yes, a resale certificate is also referred to as a sales tax certificate, reseller permit, or sales tax exemption certificate, depending on the state.

With this permit, you don’t have to pay sales tax when you purchase qualifying goods from a vendor. But you are still responsible for collecting sales tax from customers.

Get the full scoop on resale certificates →

Thanks for reading along.

I’ll be back next month with more sales tax shenanigans.

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