The DMA Way

Completely Compliance: Across America

by DMA Staff | Jul 18, 2016
Completely Compliance- Across America

Look Back

Arizona: Due to complications with information technology, the TPT Simplification has been postponed again. The project timeframe has not been provided; however, the City of Sedona is filed on the state TPT as of January 1, 2016 as scheduled. REFERENCE

Phoenix, Arizona: In August, the voters approved an increase in the transaction privilege tax for the city. The increase is 0.3% for certain business activities and there is a two-tier approach to taxing big ticket items. The increase was effective January 1, 2016. It is important to review the different business classifications and activities to determine the proper thresholds, rates and reporting instructions. For more information regarding the rate changes, you may read the instructional notices here.

Lakewood, Colorado: With the movement of online filing to the Lakewood Business Pro system, this local jurisdiction is continuing down the path to paperlessness. You will no longer receive paper notices. All notices will be sent via the Lakewood Business Pro System. REFERENCE

Rockford, Illinois: The city discontinued the mailing of their preprinted returns. You can download the form from their site, or they mailed a blank return in December that you can reproduce for future periods.

Washington Parish, Louisiana: The parish joins Bossier, Rapides, St. John the Baptist and St. Tammany parish in mandating electronic filing. Online accounts can be created on either Parish E-file or Sales Tax Online.

South Carolina: Similar to Massachusetts and Vermont, the state updated the online filing system. If you previously filed through eSales or eWithholding, the site is no longer accessible. Instead, you will need to create an account through MyDORWay. Previous logins will not work on MyDORWay and the ePay system is not supported either. If you haven’t yet set up your new account, you may do so here.

Vermont: November 5, 2015, the Vermont VTBizFile system was replaced with a new online filing system myVTax. Logging into the VTBizFile system will produce instructions to create a new account on myVTax. You may also follow the reference for step-by-step instructions. Prior history returns from VTBizFile may not be available. REFERENCE

Also with Vermont, effective January 1, 2016, all multiple-location filers are required to file sales and use tax and meals and room taxes electronically. REFERENCE

Washington Locals: The cities of Tacoma, Seattle, Everett and Bellevue now offer one website to file each city’s B&O tax return. The site is called FileLocal. More Washington locals could join this site in the future. REFERENCE

West Virginia:
Effective January 1, 2016, the electronic filing threshold changed to $25,000 per previous fiscal year. The threshold is applicable to any single business tax.REFERENCE

Wisconsin: The state announced that due to internet browser changes, you may not be able to use eForms. If you do encounter this issue, it is best to use one of the other vehicles for filing a return that the state offers, such as EDI or Webfile. REFERENCE

Looking Forward
Arizona: While the TPT Simplification has been postponed until 2017, it was reported that Sedona would become a program city, while the other self-administered cities, such as Phoenix and Tucson, will continue to be self-administered through 2016. However, other cities, such as Wilcox, Bullhead City and Somerton, which were filed on the Arizona RDS or Revenue Discovery Systems return should also be reported on the state return as well. RDS no longer services Arizona locals. REFERENCE

Westminster, CO: The city now offers two new online filing systems to make filing your return easier. The first system is F.A.S.T. The program is designed for single business filers and offers an ACH debit payment option. The other is W.E.B.S. designed for third party providers to have the ability to upload all client data in one batch. W.E.B.S. offers both ACH credit and ACH debit payment options as well. At this time, eFile/ePay is optional. There is also intent to continue to improve the systems to include more robust payment options. REFERENCE

Connecticut: Per SN 2015(5), the due date for the Connecticut sales and use tax return has reverted back to the end of the month. In 2014, the due date was moved up to the 20th. This new due date was effective for returns filed after December 31, 2015.REFERENCE

Georgia: Recently, Notice SUT 2016-001 was issued requesting public comment on the proposed amendment of Rule 560-12-1-16, which affects Direct Pay reporting. The amendment would expire all permits issued prior to October 1, 2016 on December 31, 2016. A reapplication will be required. Permits issued after October 1, 2016 will be valid January 1, 2017. REFERENCE 

Also in Georgia, HB 833, if passed, would require the Department of Revenue to offer a tax amnesty program at the end of 2016. REFERENCE

Louisiana: Effective April 1, 2016, H.B. 62 will increase the state tax rate by 1% while limiting manufacturing exemptions. H.B. 43 limits vendor’s compensation to $1,500 and H.B. 54, which would allow for advanced payment of sales tax, has been reconsidered as of March 9, 2016.

Massachusetts: Between April 1, 2016 and May 31, 2016, the state is offering, once again, an amnesty program. This program will cover all periods prior to December 31, 2015. The look back period is three years and can be filed online. REFERENCE

New York: The sales tax exemption on electronic news services has now been capped at $2920 effective June 1, 2016 until May 31, 2017. REFERENCE

New Mexico: The New Mexico TAP online filing system began using a dual authentication system. Users will now also need a code, which is emailed or texted, to them along with their username and password in order to access their account. The new system went into place place January 29, 2016. REFERENCE

North Carolina: Effective March 1, 2016, installation charges are taxable regardless of whether it’s bundled or separately stated by the retailer. This includes tangible personal property, digital property and taxable services. REFERENCE

Ohio: Senate bill 264 passed establishing a sales tax holiday in August 2016. The holiday will cover back-to-school merchandise . REFERENCE 

Originally issued in January 2003, the state revised ST 2003-01 regarding the Direct Payment Authority Program in March 2016. Ohio reviews permit holders every four years to determine the need of the permit per business compliance. Specific documents must be provided to the state during each review. To review the regulation, visit the appointed reference. REFERENCE

Oregon: Oregon is still discussing the possibility of a new gross receipts tax. The tax would function similar to the Ohio CAT tax and will replace the corporate income tax. The discussion of a gross receipts tax began around the same time that Nevada initiated the Commerce Tax, which is also modeled after the Ohio CAT tax.REFERENCE

Rhinelander, Wisconsin: The city will decide on whether it will administer a new Premier Resort Area Tax in April. If approved, the tax will be effective January 1, 2017. Retailers who are affected by the new tax will be notified by the department.REFERENCE

South Dakota: H.B.1182 increases the state sales and use tax rate to 4.5% effective June 1, 2016. The current rate is 4%. REFERENCE

Tennessee: The state has issued Letter Ruling 15-08, which provided guidance on taxing remotely accessed software. The Letter Ruling can be accessed at the reference below. REFERENCE

New Brunswick, Canada: Per the Budget News Release issued on February 2, 2016 the provincial government proposed an increase in the HST rate. The new rate would increase 2% for a total HST rate of 15%. The current rate is 13%. The new rate would be effective July 1, 2016. REFERENCE

Please do not hesitate to contact your local DMA office should you have specific questions or requests.

Completely Compliance is a quarterly e-newsletter exclusively for clients and employees of DMA. It is intended to provide relevant sales/use tax news, events, and information. As such, this e-newsletter should be used for general informational purposes only, and not as a substitute for consultation with professional tax, legal, or other competent advisers. Before making any decision or taking any action based upon information contained in this e-newsletter, you should consult with a DMA professional.