States increasing tax & interest rates...

Hi there, trash enthusiasts - welcome back.

To provide the best highest quality and most actionable content for you all, we are going to be shifting the cadence of the newsletter from weekly to monthly. Stay tuned the first Sunday of every month!

We’ll cover 3 things - (1) sales tax updates; (2) product taxability rule; and (3) a question from you. Every week we also feature a partner, so check them out.

P.S. Mark your calendars for this Wednesday (11/8) - Zamp is entering a new era. It will be unveiling its rooftop accurate Sales Tax API. Stay tuned to find out on LinkedIn and get early access here.

RECENT SALES TAX CHANGES

1️⃣ North Carolina started exempting sales of breast pumps and related repairs & supplies starting November 1.

The retailer will need to keep records to establish a sales as exempt.

California will join this initiative between April 2024 and April 2029.

2️⃣ Arizona will tax all digital services stating that SaaS is a taxable rental of tangible personal property.

I wonder if more states will follow suit…

3️⃣ Kansas to reduce sales tax rate on food and food ingredients to 2% in 2024.

4️⃣ Florida is increasing the interest rate on late tax payments by 1% in 2024.

5️⃣ Illinois is providing waivers of penalties and interest to those affected by the severe weather and flooding from September 17.

But not so fast - taxpayers need to send a brief written explanation on why they cannot file or pay on time.

6️⃣ Texas proposing a change in sales tax sourcing.

They would add a provision stipulating that orders are sourced to the physical location of a seller and not where the order is accepted, completed or fulfilled.

7️⃣ New York dismissed a petition for a sales tax refund because the form was not filed out properly.

Filing out the form accurately matters.

8️⃣ Virginia reminds taxpayers why it’s important to maintain complete and adequate records going back several years after multiple taxpayers tried to refute audit assessments without suitable documentation.

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 Andy and the Ghost Golf team - link.

RECREATIONAL ACTIVITIES GET HIT

Every state has different sales tax laws for recreational activities like marathons, 5-Ks, and other road races.

In Wisconsin, for instance, “entry fees to runs, walks, races, and other customer participation events” can be taxed.

On the other hand, in Georgia, participation fees for races like 10-Ks, marathons, and more aren’t considered taxable.

In Florida, participation fees for events are exempt when spectators have to pay to watch..

…but if there’s no spectator fee, then participation fees are taxed.

Maybe sales tax is a good enough excuse to not get out and exercise more.

Learn how your product is taxed in the US → 

PARTNER SPOTLIGHT

SeaMonster Studios is a full-service digital agency offering data-driven strategy, design, and development for brands.

Interested in chatting? Just reply to this email and I can make a direct intro.

YOUR QUESTIONS, ANSWERED!

Q (Annie): I already registered everywhere when we started. What do I do if we haven’t met the nexus requirements in most states?

A: Two options…

(a) States won’t penalize you for voluntary registration (of course). You can continue collecting & filing sales tax in all states; OR

(b) Cancel your sales tax permit in states where the cancellation complies with state-specific guidelines. Some states may dispute your ability to cancel the permit to avoid losing revenue.

Thank you 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 week’s 🗑 …

Rohit