The most wonderful time of the year 🎁

Welcome back, trash enthusiasts.🎄

With Thanksgiving, Black Friday, and Cyber Monday all within one week of each other, it’s been festive to say the least.

And what better gift is there than sales tax? 😉

Today, we’re diving into (1) sales tax news, (2) how to get compliant for the New Year, and (3) a question from you.

SALES TAX NEWS

1️⃣ In Nevada, voters approved a measure that will exempt sales and use tax on any type of diaper intended for use by a child or adult. It goes into effect on January 1, 2025, and expires on December 31, 2050.

2️⃣ The Pennsylvania Department of Revenue shared written guidance that states that services performed on taxable personal property (TPP) are considered taxable even when no personal property is transferred. Canned software, applications (apps), games, and satellite radio services are now included in the definition of TPP.

3️⃣ In Florida, the Department of Revenue released guidance that charges related to the design, installation, removal, and storage of holiday decorations and lighting are taxable when tangible items are furnished with services. Businesses that install and remove holiday decorations must charge sales tax on the total charge if the company provides any tangible items.

4️⃣ The Missouri Department of Revenue ruled that the state’s manufacturing exemption for sales and use tax does not apply to companies that perform custom machining and laser services for parts and materials.

5️⃣ Mississippi is the only state not requiring consumers to pay sales tax on Christmas trees. However, caveats to avoid paying sales tax include that they must be cut and sold at the same place and time.

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2025 IS RIGHT AROUND THE CORNER 👀

The holidays are here, and 2025 is just days away. 🫣 This means that if you’re not sales tax compliant now, it’s time to get your ducks in a row for the New Year.

So, where do you even start? Well, it’s important to begin by ensuring all your systems can correctly charge sales tax to customers. This is so you can track whether or not you’ve hit a nexus threshold in the states that you operate in.

The next step is cataloging the states where you have hit those thresholds. The reason why is that you’ll need to register in those states before you can begin collecting taxes. 

Once you’re registered, you can charge and collect taxes from customers. Each state will let you know when you need to file sales tax, which is usually monthly, quarterly, or annually, depending on your transaction volume.

Want to know more? Check out our free guides that cover everything you need to know about sales tax compliance. 👇

• Sales Tax Guide for E⁠-⁠Commerce →

• Sales Tax Guide for SaaS Businesses →

PARTNER SPOTLIGHT

Decimal solves financial operations for businesses, including handling bookkeeping, bill pay, taxes, payroll, job costing, and more. Their experienced accountants and team work with you to discover the goals of your business to help you build the best financial and operational solution.

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 (Nathan): If I don’t owe sales tax in a state, do I still have to file a return?

A: Yes, every business with a sales tax license must file a sales tax return, even if no sales were made during the period covered by the return. This is referred to as a “zero-dollar return.”

Get the full scoop on filing sales tax →

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