Completely Compliance: Across the Country

by DMA Staff | Mar 09, 2016
Completely Compliance- Across America
Look Back
Colorado: A Research and Development Refund was enacted for medical and clean technology companies per HB 1180. Refunds can be claimed for the calendar year 2015 and each calendar year thereafter prior to January 1, 2018. Applications must be submitted to claim the refund. REFERENCE

Hawaii: HB 134 extends the Honolulu surcharge into December 2027. The bill also authorizes other counties to impose a surcharge tax as well of up to 0.5%. Each county must adopt the ordinance by July 1, 2016 for the imposition to begin January 1, 2018. REFERENCE

Kansas: Between September 1, 2015 and October 15, 2015, the state enacted a tax amnesty program. Penalties and interest will be waived for tax liabilities prior to December 31, 2013. REFERENCE

Lafayette Parish, Louisiana: Effective November 30, 2015, the 1% parish-wide tax which took effect on April 1, 2015 ends. Quarterly filers will need to file one return per month for October, November, and December in order to report properly. REFERENCE

Massachusetts: The state is enacting another amnesty program. Per HB 3650, amnesty will cover periods prior to January 1, 2014 and will be for a period of 60 days in 2016. (Section 151.a) REFERENCE

Minnesota: The state has delayed the expansion of the sales tax exemptions for special districts to January 1, 2017. Afterward, certain purchases made by the special district local governments will be exempt from tax. REFERENCE

Missouri: SB 18 enacted a requirement in which the Missouri Department of Revenue must notify sellers affected by any taxability changes or law modification. If the Department fails to notify sellers, then penalty cannot be assessed or can be waived. Some criteria must be met; review the reference for more details. REFERENCE

New York: The state changed banks for PromptTax payments. The DTF provided a list of items which need to occur before October 1, 2015 when the change will take effect. There are variations depending upon if you pay by ACH Credit or ACH Debit. REFERENCE 

Ohio: Per HB 64, Ohio has joined other states with enacting click-through nexus and affiliate nexus laws. The new laws were effective July 1, 2015. (page 2267) REFERENCE

Also, effective September 29, 2015, local municipal corporations located in a county with populations greater than 375,000 but less than 400,000 and whose aggregate rate does not exceed 0.5% may declare an area of the municipal corporation to be a tourism development district and impose a fee on business owners within the district. Other criteria must be met prior to enactment. REFERENCE

Puerto Rico: Per Act 72-2015, the Territory has implemented a three-stage process to move toward a VAT system. Beginning July 1, 2015, the sales tax rate increased from 7.0% to 11.5%, with 10.5% allocated to the Territory and 1.0% to the municipality. Beginning October 1, 2015, all current services which are exempt are taxable at a 4.0% rate—no municipal tax will apply. Finally, effective April 1, 2016, Puerto Rico will begin implementing the new VAT system. REFERENCE (Opening the site in Google Chrome will allow for auto translation.)

In addition, Act 44-2015 implements a tax amnesty program for periods prior to July 1, 2014. UPDATE: Not all services will be taxed at 4.0%. Some will be taxed at 11.5%, others at 4.0% and a small amount will continue to be exempt. For a list of which services apply, click here. (Opening the site in Google Chrome will allow for auto translation.) 

Tennessee: On July 1, 2015, the state reissued exemption certificates specific for non-profit organizations. Any companies doing business with non-profits will be responsible for obtaining the most current certificate from their customer. REFERENCE

Texas: The Comptroller of Public Accounts has adopted new regulations regarding the timely filing and payment of returns. The code has been updated to state that either postmark or receipt mark from a common carrier will serve as prima facie evidence of timely filing or payment. If the envelope does not have a postmark, the Comptroller’s office will assume the filing date to be three days prior to receipt if mailed by USPS or one day prior if mailed by other common carriers. REFERENCE

Vermont: The click-through nexus laws will be implemented for remote sellers earning $10,000 or more in gross receipts from sales referred by in-state companies. The deadline for registration will be set on the first day of the month that is at least 30 days after the Attorney General’s determination. REFERENCE

Washington: SB 6138 made several changes, but two are particularly notable. Late penalties increased effective August 1, 2015. The failure to pay penalty increased from 5% to 9%. If the payment still is not received by the end of the month, the penalty increases from 15% to 19%. If not received by the end of the second month, it rises again from 25% to 29%. There is no penalty if the payment is less than $5. Also, nexus standards have changed to include remote seller definitions. If a remote seller contracts with a resident and that resident refers customers generating $10,000 or more in gross sales for the remote seller, the remote seller has nexus in the state. This was effective September 1, 2015. REFERENCE

Wisconsin: Effective October 1, 2015, the 0.5% Brown County football stadium district tax ended. Annual filers can report the tax through September 30 on their next return. REFERENCE

Looking Forward

Arizona: Due to complications with information technology, the TPT Simplification has been postponed again. The project time frame has not been provided; however, the City of Sedona will be filed on the state TPT on 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 will be 0.3% for certain business activities and there will be a two-tier approach to taxing big ticket items. The increase is 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 attached to the REFERENCE.

Lakewood, Colorado: With the movement of online filing to the Lakewood Business Pro system, this local jurisdiction will continue 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 is discontinuing the mailing of their preprinted returns. You can download the form from their site or they will mail 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 at the REFERENCE.

Vermont: November 5, 2015, the Vermont VTBizFile system will be 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 will be 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 will change to $25,000 per previous fiscal year. The threshold is applicable to any single business tax.REFERENCE

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

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.