Commercial • Industrial • Bankruptcy

1-800-914-2732
  • Home
  • About
    • Our Experts
  • Property Tax Services
    • Property Tax Law
    • Property Tax Team
    • Property Taxes Help
    • Post Administrative Appeals
    • Binding Arbitration and Litigation
    • Property Tax Valuations
    • Real Estate Services
  • Locations
    • Texas
      • San Antonio
      • Dallas Fort Worth Metroplex
      • Austin
      • Houston TX
    • Florida
      • Miami FL
    • Colorado
    • Vermont
    • Connecticut
    • Illinois
    • Nebraska
    • North Dakota
    • Wisconsin
      • Milwaukee
    • New Jersey
    • New Hampshire
    • Rhode Island
    • Michigan
      • Detroit
    • California
      • Los Angeles
    • Washington State
  • Careers
  • Contact
  • Blog
  • Bankruptcy
  • Commercial
    • Hotel
    • Healthcare
    • Small Business
    • Management
  • Industrial
    • Business Tangible
  • Mineral Interest

Property Tax Blog

blog-banner-new

Sales and Use Tax Today and Tomorrow

Posted on: July 19, 2016

Sales and Use tax today and tomorrow

Current State of Sales & Use Taxes

A growing number of companies are conducting their business in part or in whole in the virtual sphere. This means that they have the potential to reach customers in all 50 states. Each state sets its own system of sales and use taxes, and many providers of products and services are not up-to-speed with regard to their tax responsibilities in each state where they might do business. This has led states to tighten up their tax laws in an effort to enforce collection of the taxes that are due to them.

Sales taxes in brick-and-mortar operations are relatively straightforward. A consumer purchases goods or services at the store, and the state sales tax is charged at the time of purchase. States may also impose a use tax when a consumer buys goods that originate from another state but will be used within the state where the purchaser resides. The obligation to pay the use tax typically rests on the purchaser. However, if the selling entity has a connection known as a nexus with the other state, then the responsibility to charge the use tax and remit it to the state may fall to them.

A business may have a nexus with another state if they have a physical location or employ workers in that state. Without a nexus, the use tax won’t be collected by the seller, and since buyers don’t typically report such purchases to the taxing authority themselves, the tax is never collected.

Future of Sales & Use Taxes

This has become a larger problem as more people buy everything online. Now, states are enacting new legislation that is aimed at collecting use taxes for online transactions. Colorado is one of the most significant of these as the state passed legislation in 2010 that forces out-of-state retailers that do not collect the required use taxes to inform the consumer of their responsibility to pay the use tax to the state. Retailers must also produce annual purchase reports for customers who spend more than $500 with them during the year. A copy of the report goes to the Colorado Department of Revenue if total purchases exceed $100,000.

Louisiana recently enacted a law that is similar to Colorado’s, and Oklahoma and Vermont are soon to follow suit. Others will probably join them, and this means that the question of charging and reporting use taxes will need to be at the top of the to-do list for many retailers.

Sorting through the various use and sales taxes can be difficult, especially for busy businesses who would rather be doing other things. However, it makes a lot of sense to stay ahead of these tax law changes so you don’t end up paying too much or overlooking an important requirement.

Conclusion

Assessment Technologies can help commercial enterprises when it comes to managing sales and use taxes. Our experienced tax professionals have worked with clients across the country and in a wide variety of industries to help them comply with state laws. Moreover, Assessment Technologies also provides aggressive sales and use tax audit defense. Our knowledge of sales and use tax laws is second-to-none. Contact Assessment Technologies to learn more and to receive a Free review.

Filed Under: Property Taxes Tagged With: sales and use taxes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Blog Categories

  • Commercial Property (10)
  • Oil (5)
  • Press Release (1)
  • Property Taxes (50)
  • Texas Property Tax Information (13)

Associations

Member of Texas Association of Property Tax Professionals

logo-IPT

logo-SABOR

logo-CCIM

Texas Bankers Association Member

Assessment Technologies
40 NE Interstate 410 Loop, Suite 607
San Antonio TX 78216
Ph:800.914.2732
Fx: 800.431.4117
Ph: (210) 222-1221
Assessment Technologies
1017 187th Place SW
Lynnwood WA 98036
Ph 800.914.2732
Assessment Technologies
111 Congress Ave., Suite 400
Austin TX 78701
Ph 800.914.2732

Privacy Policy

Non-Residential Inquiries Only
  • Non-Residential Inquiries Only
MENU
  • Home
  • Property Tax Consultants
  • Property Tax Reduction Service
    • Property Taxes Help
    • Property Tax Legislation
    • Property Tax Valuations
  • State Property Taxes
    • Colorado Property Tax Appeal
    • Property Tax Appeals in Florida
    • Texas Property Tax Appeal
    • North Dakota Property Tax Appeals
    • Vermont Property Taxes Protest
    • Connecticut Property Taxes Protests
    • Illinois Property Tax Protests
    • Nebraska Property Tax Appeals
    • Wisconsin Property Tax Appeal
    • New Hampshire Property Tax Appeals
    • New Jersey Property Tax Appeals
  • Contact
  • Commercial Property Taxes
  • Healthcare Property Taxes
  • Industrial Property Taxes
    • Business Tangible Property Tax
  • Mineral Interest Property Taxes
  • Sales and Use Tax Help
  • Bankruptcy & Property Taxes