It's Beginning to Look Like Budget Deficits Galore

Here's a spattering of recent headlines portending trouble ahead.

WA is Facing $2.8Billion Deficit

Washington's two-year budget is about $34Billion. So the deficit is nearly 10% of the total budget. I guess that's better than the $5 to $6Billion that they were projecting back at this time a year ago.

Cash for Clunkers and Sales Tax

The federal cash for clunkers program has been in the news nonstop lately. Everyone’s thinking about what they have in their driveway and if it would qualify for this program.
But not me. I’m thinking about the sales tax implications involved.

Shipping Charges Taxable?

Freight charges always seem to be a thorn in the side of tax professionals. They're usually too small to worry about on an individual transaction basis, but they can loom large in sample audits where just a few errors in a sample can translate to huge assessments when extrapolated to a population.

Sales Tax Rate Changes Announced For: AL, IL, KS & NY

Monday, July 13, 2009 - NEW YORK CITY

New York City --Multiple Taxes: Senate Passes Combined Reporting, Sales Tax Rate Increase Bills

The New York Senate has passed A.B. 8615, A.B. 8866, and A.B. 8867, which contain a variety of New York City sales tax, corporation tax, and unincorporated business tax provisions that are part of a revenue package that was passed by the Assembly on June 16, 2009.

Sales Tax Rate Changes Announced For: AZ, DE, IN, OK & WA

Monday July 6, 2009 - SEE BELOW

Arizona --Sales and Use Tax: Local Tax Rate Changes Announced

The Arizona Department of Revenue has announced that effective July 3, 2009, Marana will increase the rate of taxation for the transient lodging add tax to 6% (previously, 3%). Additionally, effective August 1, 2009, Thatcher will increase the rate of taxation for the food tax to 2% (previously, 1.5%).

Finally Some Good News for Manufacturers

These days, when it comes to sales/use taxes, good news is hard to come by. So many states are increasing taxes and rolling back exemptions and stepping up audit enforcement. A quick perusal of the headlines provides all the proof. New York, North Carolina, California and others are taking the position that merely having otherwise unrelated people sign up as affiliates in those states means that Amazon.com (and other similarly situated companies) have nexus in those states. That's what you call aggressive.

The MA Amnesty Expires June 30, 2009

Massachusetts has enacted an amnesty program also. It's good for periods before January 2007. It only waives the penalty, but no interest. It expires June 30, 2009.

Here's the details from CCH:

WI is Hoping to Be Part of the SSTP -- Amnesty may be Available

Since WI has conformed its laws to the SSTP, then it should be admitted as a full member of the Agreement. Once that happens, then amnesty will be available for a one year period. The SSTP amnesty is pretty great because companies are not only forgiven penalty and interest but the tax also. However, the downside is significant. You also have to register with all SSTP states and those in the Agreement for over a year offer no amnesty at all.

MD has an Amnesty Program With Catches

If you have fewer than 500 employees and you didn't take advantage of Maryland's last amnesty offer back in 2001, then you might want to participate in this program.

It doesn't start til September 1, 2009 but everything must be done by October 30, 2009. Here's the details from CCH:

CT Has an Amnesty Program -- Also Expiring in June, 09

Connecticut has also enacted an amnesty program that expires June 25, 2009.

Here's the details from CCH:

Amnesty in NJ Has a Catch -- It Also Expires in June

NJ has an amnesty program in place that also expires soon -- June 15, 2009 to be exact. This from CCH:

Legislation has been enacted that requires the Director of the New Jersey Division of Taxation to establish a 45-day state tax amnesty period, to end no later than June 15, 2009.

Amnesty About to Expire in AZ on June 1, 2009

Believe it or not, amnesty offers don't come around all that often. From time to time we like to highlight the current states who are offering some type of amnesty program.

Arizona has a program that is just about to expire. You'll have to hurry to take advantage of it. But if you're under audit in AZ you might want to do something quick. Here's the details from CCH, and I quote:

Sales Tax Rate Changes in: HA, IL & NY

May 11, 2009: NO RATE CHANGES ANNOUNCED
May 12, 2009: SEE BELOW

Hawaii --Sales and Use Tax: Transient Accommodations Tax Rate Increased

How Many Sales Tax Auditors Are Out There?