Archive: sales and use tax

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Massachusetts Says In-State Apps and Cookies are a Physical Presence

Massachusetts has joined the growing number of states that have implemented a sales tax collection obligation for out-of-state retailers. On April 3, 2017, the Massachusetts Department of Revenue issued a directive announcing that the Department is adopting an “administrative bright-line rule” for sales tax collection requirements for Internet vendors (Directive 17-1). Effective July 1, 2017, […]

Hawaii General Excise Tax and the Unsuspecting Government Contractor

Winning a contract in a new state can present many challenges, not least of which is ensuring that your company is compliant with the state’s tax code. The worst approach to state tax compliance is assuming that the taxes your company may be subject to and the tax treatment of your company’s activity will be […]

Sunshine State Still Not Taxing the Cloud

On August 8, 2016, Florida reaffirmed its position on the taxation of electronically delivered software and Software as a Service (SaaS) in Florida Technical Assistance Advisement 16A-014, 8/8/2016. The issuance of the ruling means that Florida remains in the group of states still requiring software to be delivered in a tangible form for sales tax […]

My Customer’s Exempt from Sales Tax, but is my Construction Contract?

My Customer’s Exempt from Sales Tax, but is my Construction Contract? Construction contractors in the region face anything but uniformity when it comes to dealing with the rules addressing sales tax as it applies to projects for tax exempt customers (e.g., government entities and not-for-profits). Not only does the scope of the exemptions offered in the […]

Voluntary Disclosure Agreements: How to Come Clean on State Taxes

When old tax liabilities are discovered, taxpayers can either play the audit lottery or come clean to state taxing authorities about their back taxes.  Most states offer voluntary disclosure agreement (VDA) programs for non-filers, which typically offer benefits that make the latter option more attractive. With more and more businesses offering products and services in […]

Software Providers – Don’t Mess With Texas!

Based on a decision issued by the Texas Comptroller, certain out-of-state companies that license software products to customers in Texas are required to collect sales tax on those licenses, even if they have no actual presence in the state. The Comptroller’s decision (Decision No. 106632), which was issued on September 19, 2014, takes a rather […]

Navigating Sales Tax Complexities for Construction Companies: An Aronson Q&A

Q. How do you file for a refund in Maryland for sales tax paid on purchases for exempt jobs in the District of Columbia? A. Maryland requires contractors to pay sales tax on all purchases of materials that will be incorporated into real property as part of a construction contract. However, Maryland allows contractors to […]

One Contractor, Two Bids, Three Different Sets of Sales Tax Rules

State sales tax rules vary significantly for construction contractors doing business in the DC region, and can substantially affect the final cost on a contract. For instance, a Virginia-based contractor bids on two separate construction contracts for a federal government agency. Both of the contracts are for the construction of a building, one contract will […]

Contractors Beware: Ignoring Sales Tax Can Cause Your Bottom Line to Suffer

Construction contractors conducting business in multiples states face no small task when it comes to complying with the varying sales and use tax rules applicable to the construction industry.  Although most states do not impose sales tax on construction services, contractors need to be aware of the rules pertaining to how sales tax applies to […]

Sale for Resale – An Easy Concept That’s Costly if Missed

A recent Virginia sales and use tax ruling illustrates how ignoring basic sales and use principles can be costly for businesses. The concept is simple – a sales tax is a consumption tax imposed on the end user of a product. Thus, if your company purchases tangible personal property with the intent of reselling the […]