Airbnb filed an appeal challenging Boulder, Colorado’s Municipal Court's decision to include its service fee in the city's Short-Term Rental Tax base. Additionally, Airbnb questioned the court's decision denying its penalties and interest abatement.
Read MoreEffective January 1, 2024, Illinois enacted a new exemption for purchases of tangible personal property made by active-duty members of the United States armed forces when the federal government is the payor. This exemption applies to the Retailers’ Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act. Of note, the exemption does not include personal purchases made by active-duty service members.
Read MoreUnderstanding tax compliance procedures can be a complicated and time consuming process, especially when it comes to refunds and prepayment rates. The Michigan Department of Treasury (Department) has issued a Revenue Administrative Bulletin (RAB) to explain the procedures for claiming sales or use tax refunds, as well as to provide sales tax prepayment rates for gasoline and diesel fuel effective January 2024.
Read MoreFlorida Governor Ron DeSantis announced his budget proposal for the 2024-2025 fiscal year, “Focus of Florida’s Future”. The proposed budget recommends more than $1B in tax relief for both taxpayers and businesses.
Read MoreNumerous states offer tax credit and incentive programs in an attempt to lure out-of-state businesses interested in expanding or relocating operations to their state. One such state, Pennsylvania, offers several tax incentives and job credits that are designed to support and encourage business growth, job creation, and investment in the manufacturing industry.
Read MoreThe New York Court of Appeals , the state’s highest court, upheld a decision by the state Tax Appeals Tribunal holding a former company president personally liable for the company’s unpaid taxes. The former president of New England Construction Company, Inc. (NECC), is responsible for paying withholding tax liabilities dating back to 2014 and 2015.
Read MoreAccording to the 2023 online shopping forecast released by Adobe Analytics, Cyber Monday is the year’s largest single shopping day and is expected to yield $12B in spending. Additionally, Adobe reported that online shopping will account for over half of all online spending during the holiday season of November 1 through December 31. As an online seller, here are some things you should consider during this highly profitable season.
Read MoreIn 2021, Maryland became the first state to enact a digital advertising tax, an unprecedented approach to regulating and taxing revenue received from digital advertising services. Now, Apple, Inc.’s (Apple) constitutional challenge to the tax is progressing through Maryland’s courts.
Read MoreOn December 1, 2023, Florida’s commercial real property rent tax rate will be reduced from the current rate of 5.5% to 4.5%. Earlier this year, Florida Governor Ron DeSantis signed sales tax relief legislation providing $2.7 billion in tax breaks during the 2023-2024 fiscal year. Highlights of the plan include a reduction in the tax rate for business rentals, permanent and temporary tax exemptions and sales tax holidays.
Read MoreIn a recent en banc decision, the Missouri Supreme Court (Court) upheld the decision exempting from use tax purchases of information technology equipment made by Walmart subsidiary Walmart Starco LLC (Starco). Appellant, Missouri Department of Revenue (Department), assessed $8M in use tax, interest and penalties against Starco, asserting the company could not claim a resale exemption.
Read MoreIn concluding Pennsylvania’s regulations authorizing participation in the Regional Greenhouse Gas Initiative (RGGI) proposed by former PA Governor Tom Wolf’s administration were invalid and unenforceable, the Pennsylvania Commonwealth Court determined the regulations were unconstitutional as they “infringe[d] upon the General Assembly’s exclusive authority to levy (or not levy) taxes.”
Read MoreTo quote one of our Founding Fathers Benjamin Franklin, “… nothing is certain except death and taxes.” If he only knew how well this statement would endure the test of time.
Read MoreReversing the lower chancery court, the Mississippi Supreme Court ruled that Online Travel Companies (OTCs) Priceline, Cheaptickets, Expedia, Orbitz, Hotels.com, Hotwire and Site59 are not subject to the sales tax levied against hotels in Mississippi. In reaching its decision, the Court determined that the OTCs are not “hotels” as defined by Mississippi statute.
Read MoreThe Arizona Supreme Court declined without comment to hear arguments from ADP, LLC (ADP) regarding its requested transaction privilege tax (TPT) refunds from the Arizona Department of Revenue (Department) and the City of Phoenix for revenue from its contracts with Maricopa County.
Read MoreNine individuals joined in filing a class action lawsuit in US District Court, Northern District of California against Google, LLC (Google) alleging that their sensitive financial information was involuntarily transmitted to Google while filing their taxes online. The class action members filed their taxes using tax preparation services offered by H&R Block, TaxAct and TaxSlayer.
Read MoreA New York State Division of Tax Appeals Administrative Law Judge (ALJ) held a managing member of a limited liability company (LLC) personally liable for the sales tax liability originally assessed against Eden Ballroom, LLC (Eden) after the member failed to disprove his responsibility as a managing member.
Read MoreIn an effort to better understand remote sellers and their approach to sales tax compliance and the impact notices have, a team of accounting professors with the University of Texas at Austin conducted a randomized field experiment in collaboration with the Texas Comptroller’s Office.
Read MoreThe California Office of Tax Appeals (OTA) recently sustained a $2.5 million tax assessment related to leases of tangible personal property. K1 Speed, Inc. (K1), a company operating indoor go-kart racing venues in California and other states, failed to collect and remit tax on its rental receipts from leasing go-karts to its customers.
Read MoreThe North Carolina Business Court (Court) recently reversed and remanded a decision appealed from the North Carolina Office of Administrative Hearings (OAH), leaving cellphone retailer Wireless Center of NC, Inc. (Wireless), an independent contractor of former Sprint Solutions, Inc.’s (Sprint) Boost Mobile (Boost) for over $500,000 of sales tax assessed on sales of prepaid airtime.
Read MoreAs an update to our Insight on July 22, 2022, counsel for Halstead Bead Inc. (Halstead) has notified the United States Court of Appeals for the Fifth Circuit that the basis for its appeal filed in opposition to Louisiana’s remote seller sales tax laws is now moot.
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