Sales and Use Taxes
Georgia Issues Sales and Use Taxability Matrix
Effective January 1, 2011, Georgia became an associate member of the Streamlined Sales and Use Tax Agreement (SSUTA). The Georgia Department of Revenue (the Department) has submitted its taxability matrix . The document shows categories as defined by the SSUTA Appendix C and denotes whether those categories are taxable or exempt from state taxation . Included in the listing, the following are marked as taxable: clothing and accessories; food and food ingredients; and prescription drugs for human use to hospitals. Computer maintenance contracts are also addressed. Click here to download the full taxability matrix.
North Carolina Alters Tax on Accommodations
Effective January 1, 2011, North Carolina modernized the state’s sales tax on accommodation rentals due to recent legislative changes. The change affects both taxes on gross receipts from accommodation rentals occupied on or after January 1, 2011, and receipts derived from a reservation made prior to January 1, 2011. The sales price of the rental is now included in gross receipts calculations and taxed at state and county sales and use tax rates. The sales price is calculated as though the rental were tangible personal property. Use of a facilitator would also trigger the inclusion of facilitation fees and other. Read More.
Ruling: North Carolina’s Amazon Request Violates First Amendment
A federal judge recently ruled that the North Carolina Department of Revenue’s (the Department) request for information on residents’ Amazon.com purchases would violate First Amendment rights. As the Associated Press reports, the Department is seeking to reclaim an estimated $50 million in state tax revenue from residents who purchase online but do not then remit appropriate sales and use taxes to the state. In a suit filed in its home state of Washington, Amazon and the American Civil Liberties Union (ACLU) claimed that releasing such information would allow the state to track the reading, listening and watching habits of its customers. “The ACLU is not taking issue with the department’s authority. Read More.
Bundled Service Plans Subject to Florida Sales Tax
Service support plans and extended warranties sold in conjunction with computer hardware and software are considered tangible personal property under Florida state law, and are subject to sales tax. According to a recent Florida Technical Advisement (10A-035) , such charges are considered part of the sales price under Fla. Stat. § 212.02(16). Click here to read a summary of the case in question.
South Carolina’s 2010-11 Budget Provides Tax Rebate, Exemption Measures
The recently approved 2010-11 South Carolina Budget Bill (the Budget) provides for $4.9 billion in spending and includes several tax incentives and changes. The changes affect corporate and personal income tax, sales and use tax, and the motor fuels tax. Income Tax Teaching Supplies and Materials Reimbursement The Budget provides $275 per certified teacher to reimburse expenses incurred for supplies and materials. Qualified teachers include certified public school teachers, special school classroom teachers, media specialists and guidance counselors employed by a school district or charter school as of November 30. This reimbursement is not considered taxable income. Motion Picture Rebates For motion picture production companies. Read More.
North Carolina Adds and Expands Tax Incentives to JobsNOW Initiative
On July 22, 2010, North Carolina Governor Bev Perdue signed into law legislation, part of the JobsNOW initiative, adding and amending several economic development incentives . The incentives, which include a number of tax rebates and credits, come in addition to tax changes in the recent 2010-11 Budget . Among the changes are extensions to several provisions, including the credit under Article 3J, expansion of covered costs for production companies, plus new incentives for digital media producers and Eco-I ndustrial Parks . Growing Businesses Tax Credits The Article 3J tax credit for growing businesses has been extended two years, now ending January 1, 2013. This credit can be taken. Read More.