Archive: Sales tax

Avoid Sales and Use Tax Headaches on a Contract  Webinar

Download presentation slides here. Multiple factors can impact sales tax treatment such as: Where is the project located? Are materials purchased in one state and used in another? Are materials being affixed to a property? There are a lot of questions that can come up when sales and use tax come up in contracts. Specifically, […]
May 19, 2022

Sales and Use Tax Webinar

  Download presentation slides. Avoid running into the risk of over or underbidding on work by ensuring compliance preparedness for sales tax audits. Michael Colavito, a director in Aronson’s Tax services group, provided an overview of the application of sales tax to the construction industry. This presentation is in partnership with CFMA. From this presentation, […]
April 28, 2021

Maryland Entices Datacenters with New Sales Tax and Personal Property Tax Exemption

Earlier this year, Maryland followed in the footsteps of a number of other states by enacting tax incentives for individuals or businesses operating a qualified datacenter in Maryland. The incentives consist of a sales tax and personal property tax exemption on qualifying datacenter personal property. To qualify for the exemptions, which took effect on July […]
November 3, 2020

Sales Tax Landscape for SaaS Companies

In June 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair, Inc. case, paving the way for states to impose a sales tax collection obligation on in-state sales, even if the seller does not have a physical presence in the state. As a result, many software as a service (SaaS) […]
May 5, 2020

“Kill Quill” Effort Moves Forward at U.S. Supreme Court

It took 26 years, but on January 12, 2018 the U.S. Supreme Court agreed to consider overturning the long-standing “physical presence” nexus standard that applies for sales and use tax. If the Court sanctions the South Dakota law that is the subject of the appeal, it will pave the way for states to require out-of-state […]
January 15, 2018

Tennessee Sales Tax Rule Continues Economic Nexus Trend

This article was co-authored by Paul A. Zee-Cheng. On October 3, 2016, Tennessee issued a proposed rule making it the third state to impose a sales tax collection obligation on certain out-of-state sellers with no physical presence in a State (Rule 1320-05-01-.129). Under the new rules, out-of-state sellers who make over $500,000 in sales to consumers […]
November 29, 2016

Note to Not-For-Profits: Don’t Ignore Sales Tax

Making assumptions when it comes to sales and use tax is ill-advised for any entity’s approach to compliance.  This is especially the case for not-for-profits.  Exemption from federal income tax can count for nothing in the sales and use tax world, and states are anything but uniform when it comes to exemptions available for not-for-profits.  […]
August 23, 2016

Pennsylvania Sales Tax Goes Digital

Effective August 1, 2016, Pennsylvania’s sales tax will be imposed on the sale of digital products. Thus, sellers of digital products should start collecting Pennsylvania sales tax on such sales to customers located in Pennsylvania. This is a significant expansion of the sales tax base in Pennsylvania, with purchases of music, smartphone “apps,” and online […]
July 22, 2016

New Sales Tax Law Fast-Tracks Constitutional Challenge in South Dakota

On March 22, 2016, South Dakota enacted legislation (SB 106) that requires certain out-of-state sellers with no physical presence in the state to collect and remit the state’s sales tax on sales to South Dakota customers. Beginning on May 1, 2016, the obligation to collect the state’s sales tax for out-of-state sellers is based solely […]
April 13, 2016

The Sourcing Tail Wagging the Nexus Dog

There is a growing list of states that have adopted a more aggressive income tax nexus standard.  On August 11, 2015, Alabama added itself to the group of states that impose their income tax on out-of-state businesses solely based those businesses a certain level of sales to customers in the state.  The trend is a […]
August 20, 2015