March 2019 Sales Tax Rate Changes

Just two sales tax rate changes for March 2019.

West Jefferson, Alabama Has a new local rate of 4.0% which bring the new total rate to 10.0%

Mesa, Arizona in Maricopa County has a new total rate of 8.3%.


Sales and Use Tax Rates by StateWhether you need a quick sales tax calculation with our Online Lookup (with free desktop and mobile apps), or something more extensive; we have an affordable solution for you.  See our Service Comparison Chart here.  Then give me a call, chat, or email and let me simplify your sales tax!


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Do Employer Sponsored Cafeterias Have to Collect Sales Tax?

Missouri Supreme Court Says Operator of Federal Reserve Cafeteria Must Collect Sales Tax

Most states apply some form of sales tax to the purchases of meals and drinks. But what if a business or public employer maintains an employee cafeteria? Does the cafeteria operator need to charge sales tax on the meals and drinks sold to the employees?

The Missouri Supreme Court recently confronted these questions in a case, Myron Green Corporation v. Director of Revenue, that also involved the interaction of federal and state law. The plaintiff in this case, Myron Green Corporation, is a private company that provides food services to clients in Kansas City and several other Midwestern cities. One of Myron Green’s customers was the Federal Reserve Bank of Kansas City.

FRB of Kansas City contracted for employee cafeteria.

cafeteriaThe Bank contracted Myron Green to run its in-house cafeteria which is restricted to Bank employees due to security needs. But, if cleared to enter the Bank, visitors could also purchase food and drink at the cafeteria.

Under Myron Green’s contract, Bank employees could pay for their purchases using their identification badges. The Bank would then deduct the purchase amounts from the employee’s next paycheck. Employees and visitors could also pay for purchases in cash, although roughly 80 percent of all sales were paid for using payroll deduction.

Actually, the bank paid Myron Green a lump-sum every two weeks using its own credit card. The Bank then reimbursed itself from the amounts deducted from individual employees. The Bank further subsidized the overall cost of food such that the employees and other customers paid below-market prices at the cafeteria.

Under federal law, Federal Reserve banks are exempt from paying all state and local taxes (aside from property taxes). Myron Green believed this federal exemption meant it did not have to collect Missouri sales tax on any products sold in its cafeteria at the Kansas City bank.

Sales are to employees, not the bank itself, thus taxable.

The Missouri Department of Revenue determined that all the cafeteria’s cash and payroll-deduction sales were made to individual employees, not the bank itself, and the exemption only applied to the latter. After an administrative hearing commissioner upheld the Department’s determination, Myron Green sought judicial review directly with the Missouri Supreme Court.

Missouri Supreme Court Upholds Determination

In a unanimous decision published on January 15, 2019, the Court agreed with the Department of Revenue and the commissioner’s reading of the law.

First, the Court noted that Missouri law imposes a sales tax any place where “meals or drinks are regularly served to the public.” The Court said there was a difference between a company-owned cafeteria and one maintained by an outside contractor like Myron Green. In a 2003 decision, the Supreme Court said a Missouri company that operated its own employee cafeteria did not need to collect sales tax because the firm’s “main business was not operating company cafeterias.” In contrast, Myron Green’s main business was “operating on-site cafeterias for corporate clients.” And the fact that access to the Federal Reserve building itself was restricted did not matter, as Myron Green’s cafeteria sold food or drink to anyone who had cash, i.e. it “regularly served” the public.

Second, the Court also rejected Myron Green’s argument that the Federal Reserve’s institutional sales tax exemption extended to individual employees. The Bank did not purchase food or drink directly from Myron Green. Rather, Myron Green purchased its own food at wholesale and offered it for resale to individual employees. Even though most Bank employees paid for purchases using their employee IDs, this “merely provided an avenue through which bank employees could pay.”


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Desktop Widget Version 2.2.1 is Here

Our Best Desktop Widget Version Ever!

widget iconSome of our subscribers live and breathe through the Zip2Tax Desktop Widget.  I know I do!  When it went down last Fall, the Zip2Tax Development Team decided to update it with all the improvements subscribers have asked for over the years.     

It took a bit longer than we thought.  

But it was worth the wait!

 

On December 1, 2018 we introduced our new and improved Desktop Widget version 2.2.0 to our subscribers.  Then, we tweaked it even more and put version 2.2.1 out there for download.


So What’s New?

Spot-On™ subscribers will be pleased to know that the new version now accommodates your precise queries! You don’t have to switch tabs either.  If all you know is the ZIP code, go ahead and type just that in your tab.  Complete as much or as little information you have available.

widget Tabs


The Calculator is now an option button so if you just use the rate details, the calculation box will be out of sight until you need it.

widget Calculate Tab


Here is my favorite part – The Print Screen!  Now you can print easily and with a date – perfect for your audit files.

 

widget rate print


Awesome improvements so far, right?  But wait, there’s more!

 


If you subscribe to the Use Tax add-on, you now find a Use Tax column in the Details.  Not only for your specific lookup, but if you have another Community sharing that ZIP code, click on that and ….. wow!

widget Columns

 


You’ll never use your browser again.

Once you download and start using this app, you will never do queries using your browser again.

The Zip2Tax Desktop Widget is free to all Online Lookup Subscribers.  It downloads and installs in seconds.  For easy to follow step-by-step instructions, go to our Desktop Widget page.  When you are done, make sure before you log in you see the Version 2.2.1.

Once you start the widget, just minimize it to your task bar for easy and fast retrieval at your fingertips.d

widget taskbar


Please let us know how it works for you!  I think you’ll agree; it is a great tool for sales and use tax queries.


Join Us for Updates and Information


By submitting this form, you are consenting to receive marketing emails from: Zip2Tax, LLC, 1740H Dell Range Blvd #449, Cheyenne, WY, 82009, http://www.zip2tax.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

 

Remote Seller + New Year = New Sales Taxes

Remote Sellers…..Are you ready?

Seven states implemented their economic nexus sales tax rules for remote sellers with the new year.

These States all have effective dates of January 1st.

  • District of Columbia
  • Georgia
  • Iowa
  • Louisiana
  • Nebraska
  • New York
  • Utah

Do you have your sales tax rates in place for each state?  Do you know if you meet the thresholds? See our Economic Nexus Chart for a complete overview of the States and their guidelines.

STATE$ Gross Receipts
Limit
# Retail Sales
Transactions
EFFECTIVE DATEDepartment of Revenue Links
Alabama$250,000October 1, 2018AL DOR Announement
ArkansasProposed $100,000Proposed 200TBDHouse Bill 1002 still in discussion.
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
District of Columia$200,000200January 1, 2019DC Internet Sales Tax Amendment Act of 2018
Georgia$250,000200January 1, 2019GA Requirements
Hawaii$100,000200July 1, 2018HI DOR Announcement
Indiana$100,000200October 1, 2018IN DOR Tax Bulletin
Iowa$100,000200January 1, 2019IA DOR Announement
Kentucky$100,000200July 1, 2018KY Ruling FAQs
Louisiana$100,000200January 1, 2019Louisiana DOR
Maine$100,000200July 1, 2018ME Help for Remote Sellers
Maryland$100,000200October 1, 2018MD DOR Tax Alert
Massachusetts$500,000100October 1, 2017MA DOR rule has been in effect since 2017
Michigan$100,000200October 1, 2018MI DOR Document
Minnesota$100,000100October 1, 2018MN Bulletin for Remote Sellers
Mississippi$250,000September 1, 2018MS DOR Guidance for Online Sellers
Nebraska$100,000200January 1, 2019NE DOR News Bulletin
New Jersey$100,000200October 1, 2018NJ DOR Notice for Remote Sellers
New York$300,000100January 1, 2019NYS DOR Announcement
North Carolina$100,000200November 1, 2018NC DOR Directive
North Dakota$100,000200October 1, 2018ND DOR
Pennsylvania$10,000March 1, 2018PA DOR
Rhode Island$100,000200RI DOR FAQs for Remote Sellers
South Dakota$100,000200October 1, 2018 SD DOR Remote Seller Law
Texas$500,000October 1, 2019
Utah$100,000200January 1, 2019Online Sales Tax Amendments
Vermont$100,000200July 1, 2018VT DOR
Virgina$100,000200TBD
Washington$100,000200October 1, 2018WA DOR
Wisconsin$100,000200October 1, 2018WI DOR FAQs
Wyoming$100,000200Date TBDWY DOR Page

We Have The Tax Rates

Zip2Tax has Sales  and Use Tax Tables that offer a wide range of options to meet your needs.  Online shopping cart integration, ERP system platforms, call centers and invoicing programs. Single state, entire US and/or Canada, monthly subscriptions or one-time downloads…whatever you need.

All ZIP codes in every State included—over 12,000 jurisdictions!

Automate your online shopping cart with sales tax data at the point of sale. A secure sales tax API connects your database to the Zip2Tax constantly updated servers to power your e-commerce site with a real-time data when you need it.

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Use this handy comparison chart to match our services to your needs.

 

February Sales Tax Changes

February 1, 2019 saw a few changes in sales/use tax rates for the State of Arizona.

The city of Guadalupe has added 4% use tax on purchases and 4% use tax on inventory.  This now matches the 4% sales tax that was already in place for the City.

tax breakdown

Printed from the Zip2Tax Desktop App

The city of Scottsdale has increased the retail sales tax rate from 1.65% to 1.75%

scottsdale

Printed from the Zip2Tax Desktop App

Check back here next month for more Arizona rate changes effective March 1st.


arizona sales tax rate online lookup by zip2taxarizona az sales tax rate ecommerce api by zip2taxarizona sales tax rate from state sales tax rates tables from zip2tax

How would you like your sales and use tax data served!  We’ve got what you need.

See our Service Comparison Chart for more information.


 

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