Completely Compliance - Across America

by DMA Staff | Apr 05, 2017

Look Back

Per Proposition 30, the 0.25% temporary rate increase expired December 31, 2016. Therefore, the effective rate beginning January 1, 2017 was 7.25% instead of 7.5%. This rate did not include the various district taxes.

Chicago, Illinois: The city proposed a voluntary disclosure offer for a limited time specifically for Amusement Tax. The offer is targeting paid television programming including satellite TV. VDA applications must have been submitted by December 31, 2016.

Also in Chicago, the City Council approved a new Checkout Bag Tax which imposes a $0.07 per checkout bag sold or used in the city. Note that the city already has in place a Plastic Bag Ordinance which bans plastic bags for chain stores and franchises.

Florida: Due to a system upgrade, the state has a new website and email structure. The new site is and any contacts with the state have an email address of instead of

Georgia: The state has adopted Rule 560-12-2-.21 Itemization of Tax. The rule will provide updated requirements for reporting and collecting tax and includes rules on tax absorption, invoice itemization and tax separation. Written notification to the purchaser is required on some items.

Louisiana: The Louisiana TAP online filing system moved to a two factor authentication system which means a code will need to be input upon the first login and the “Remember this computer” activation button selected so you will not have to input another code going forward.

Mississippi: Several cities have levied special taxes since the last newsletter. Meridian, Mississippi now has a 2% special tax on gross proceeds of sales by restaurants within the city limits. This was effective November 1, 2016. Similarly, Carthage, Mississippi has levied a 2% tax on hotel/motel room rentals in addition to the gross proceeds of restaurant sales. This was effective December 1, 2016. Finally, Pascagoula, Mississippi levied a 2% tax on gross proceeds of sales of restaurants which was effective January 1, 2017 with a repeal date of July 1, 2018.

New Jersey: Effective January 1, 2017, five Urban Enterprise Zones (UEZs) expired. Bridgeton, Camden, Newark, Plainfield and Trenton can no longer be collected at the reduced rate. UZ-2 licenses were replaced with ST-2, Sales Tax Certificate of Authority and exemption certificate Form UZ-5 may no longer be used. The final UZ-50 return was for December due January 2017.

North Carolina: The definition of repair, maintenance and installation services was expanded. Any person whose only business activity is repair, maintenance and installation is considered a retailer and is liable for sales and use tax. Also the definition of the service expanded to include both real property and digital property. The new definitions were effective January 1, 2017.

Looking Forward
Alabama: The Alabama DOR has launched a new look-up feature to review distributions to the different localities from the ONE SPOT or Simplified Sellers Use Tax (SSUT) programs. Launched in February, the feature is available through the My Alabama Taxes (MAT) website.

California: SB 11 prevents the state from assessing penalties and interest on a taxpayer for late payment if the late payment was due to the failure of the Board of Equalization’s website.

Okaloosa County, Florida: A new 5% Tourism Development Tax will be effective April 1, 2017. The new liability will be reported on the state return under line D, “Transient Rentals”.

Nebraska: LB 313 could increase the state rate from 5.5% to 6.5%.

Oklahoma: Per a press release issued February 8, the Governor has proposed the elimination of state sales tax on groceries. The local jurisdictions can continue to tax groceries. It is an exception to the SSTP rules.

Oregon: HB 2230 would repeal the current corporate income and excise taxes and enact a 0.7% “commercial activity tax” based on gross receipts, with a one million dollar gross receipts exclusion. However, the measure would only go into effect upon the approval of a constitutional amendment included in House Joint Resolution 4.

Also in Oregon, SJR7 could potentially introduce a sales and use tax in the state on the purchase of tangible personal property and services and use tax.

Tennessee: Effective February 1, 2017 and due March 20, the Nashville Metropolitan Government of Davidson County will now impose a Central Business Improvement District (CBID) fee of 0.25% on certain sales in the specific district outlined in the notice. The tax will be administered similarly to the Tennessee state tax with some exceptions. Review the notice for details.

Also in Tennessee, the state launched a new Taxpayer Access Point (TAP) system. The system was available as of March 1, 2107.

Texas: The state has announced its sales tax holidays for the year. The back-to-school holiday will be August 11-13 (98-490), hurricane preparedness is April 22-24 (98-1017), and Energy Star is May 27-29 (96-1331). Also in Texas, the website for webfile and eSystems will be enhanced to include better management of logins and restricted access.

Virginia: The Governor has approved HB 2246 which will create a tax amnesty program for 2017. The program will be conducted between July 1, 2017 and June 30, 2018 and shall last between 60-75 days. The specific period of amnesty will be determined by the Tax Commissioner.

Washington: In February, SB 5775 was introduced, proposing to repeal many of the exemptions available for sales/use tax, property and B&O taxes. Some exemptions up for consideration are digital goods, many types of raw materials, some healthcare services, and newspapers. For a complete listing, review the bill language.

Also in Washington, HB 1457 will designate the dates for the sales tax holiday in 2017. The dates are the second adjacent Friday, Saturday and Sunday of August.

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.