Sales and use tax rate changes for January 1, 2014

Jan. 1, 2014

Jan. 1, 2014

Sales and/or use tax rates in the states of Alabama, Arkansas, Arizona, Colorado, Georgia, Illinois, Kansas, Louisiana, Minnesota, Missouri, North Dakota, Nebraska, New Mexico, New York, Ohio, Oklahoma, South Dakota, Texas and Washington  have changed in Zip2Tax products since December 2013.

In Alabama, tax rates changed for Mumford.

In Arkansas, tax rates changed for Barling, Blytheville, Crossett, Huntsville, Mountain Home, Paris, Portland, Vilonia, Lawrence County and Nevada County.

In Arizona, tax rates changed for Superior.

In Colorado, tax rates changed for Blue River, Firestone, Rocky Ford, Fremont, Boulder, Lamar and Commerce City.

In Georgia, tax rates changed for Baker and Twiggs.

In Illinois, tax rates changed for Carlinville, Champaign, Cicero, Dolton, Melrose Park, Moweaqua, Sesser, Springfield, Tilton, Tuscola, and Urbana, Williamsville, Winfield and the counties of Boone, Christian, Douglas, Gallatin, Hardin, Henry, Livingston and Mercer.http://www.zip2tax.com/WA/washington-sales-tax/

In Kansas, tax rates changed for Clay Center, Parsons, Pittsburg, and Wellington.

In Louisiana, tax rates changed for St. James Parish and St. John Parish.

In Minnesota, tax rates changed for Rice and Olmstead.

In Missouri, tax rates changed for Chariton, Scott, Ashland, Bridgeton, Rolla, Shelbyville, and St. Joseph.

In North Dakota, tax rates changed for Hazen, Rolette and Tower City.
http://www.zip2tax.com/WA/washington-sales-tax/
In Nebraska, tax rates changed for Seward and Dakota.

In New Mexico, tax rates changed for Quay, Roosevelt, Corrales and San Juan.

In New York, tax rates changed for the county of Ulster.

In Ohio, tax rates changed for the counties of Franklin and Putnam.

In Oklahoma, tax rates changed for Woodward, Yale, Texhoma, Beaver and Kingfisher.

In South Dakota, tax rates changed for Wessington, Pukwana, Mellette and New Effington.

In Texas, tax rates changed for Richland Springs and Lohttp://www.zip2tax.com/WA/washington-sales-tax/ne Star.

In Washington, tax rates changed for Arlington, Kitsap, Monroe, Newcastle and Skagit.

There were 45 states with ZIP code changes effective after December 2013 including Alabama, Arkansas, Arizona, California, Colorado, Connecticut, DC, Florida, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, West Virginia and Wyoming.

Download the full ZIP code change documentation.

For December 2013 changes click here.

Angel Sauer

Angel Sauer, sales tax research team leader

As of November 2012, the following states tax shipping:

states tax shipping

states tax shipping

The following states tax shipping:

Arkansas
Connecticut
Georgia
Hawaii
Indiana
Kansas
Kentucky
Michigan
Minnesota
Mississippi
North Carolina
North Dakota
Nebraska
New Jersey
New Mexico
New York
Ohio
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Vermont
Washington
West Virginia
Wisconsin

Amazon’s vested interest in universal online sales tax

universal online sales tax

universal online sales tax

Marketplace-Fairness-Act
With the addition of a new Amazon distribution center in Kenosha, WI, the number one largest online retailer will soon be collecting sales tax from almost 50% of the American population.

Amazon will begin collecting Wisconsin sales taxes on Nov. 1 and the state expects to benefit to the tune of $30 million per year.

universal online sales tax

Beginning Nov. 1st, Wisconsin will become the 14th state Amazon collects sales tax for. The mega-retailer has arrangements to add at least 6 more states to that list over the next 3 years.

Amazon currently has nexus is 18 states. Nexus, a physical in-state business presence, has long been the determining factor behind which businesses have to collect sales tax. Nexus is created by brick and mortar stores, distribution centers or warehouses, call centers,  offices, sales people, and sometimes just by sending an employee to a convention.

The mega-retailer already collects sales taxes in Arizona, California, Georgia, Kansas, Kentucky, New Jersey, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington and West Virginia. Amazon has a physical presence in all of those states except for Georgia and New York.

Georgia passed a law in January requiring all online retailers doing business within the state to collect sales taxes and Amazon complied starting last September. New York won a court appeal upholding the state’s right to claim nexus is created when an out-of-state retailer pays in-state affiliates a commission to promote their products or services. New York refers to this as “click-through nexus”.

Amazon shut down its Connecticut affiliate program back in 2011 to avoid click-through nexus in that state but may be thinking about restarting the program as it recently announced that it will begin to collect Connecticut sales taxes and invest $50 million over the next two years for a jobs initiative.

Amazon has distribution centers in New Hampshire and Delaware where neither state has a sales tax. It also has centers in Indiana, Massachusetts and Nevada and has agreed to begin collecting sales tax in these states in the near future.

Amazon has acknowledged that it has nexus in Tennessee and South Carolina, but made special deals with those states which allow it to postpone sales tax collections for a time. Tennessee Gov. Haslam agreed to hold off on an Amazon tax until 2014 if the retailer agreed to send notifications to all customers about how much tax they owed on their purchases going back through 2012. South Carolina made a deal that exempts the company until 2016 in return for a promised distribution center and its 1,200 jobs. The state left itself an escape clause saying the agreement would be nullified should the Marketplace Fairness Act pass and create a standardized set of federal regulations.

This patchwork of regulations, state-by-state agreements and endless legal battles seems to be the main impetus behind Amazon’s support for the Marketplace Fairness Act or universal online sales tax. This law would significantly ease Amazon’s burdens while simultaneously increasing the burden on other smaller online retailers. Amazon stands to significantly widen its lead over the competition.

Fall brings tax breaks for energy efficient appliances

tax breaks

tax breaks

Energy start tax breakOctober is Energy Awareness Month in hopes consumers will learn to make better decisions about energy usage. Purchasing energy efficient appliances often will often get you tax breaks.  As part of this campaign, several states hold sales tax holidays for the purchase of energy efficient appliances.

Georgia held its sales tax holiday from Oct. 4 – 6. During this time, residents could buy energy and water efficient appliances worth up to $1,500 and avoid sales taxes. Virginia held its holiday from Oct. 11 – 14. Residents could avoid sales taxes on certain energy efficient products worth up to $2,500. North Carolina will be holding its holiday from Nov. 1 – 3 on Energy Star qualified products.

The federal government also offers a federal tax credit for energy efficient appliances that lasts until the end of the year. All these programs are a good way for consumers to upgrade to better appliances while saving money on taxes.

Read more at Parade

Sales and use tax changes for Oct. 1, 2013

Tax rate changes effective October 1, 2013

Tax rate changes effective October 1, 2013

Sales and/or use tax rates in the states of Alaska, Alabama, Arkansas, Arizona, California, District of Columbia, Georgia, Kansas, Maine, North Dakota, Ohio, Oklahoma, Texas, West Virginia, and Wyoming have changed in Zip2Tax products as of October 1, 2013.

In Alaska, tax rates changed for Sitka, Skagway and Whittier.

In Alabama, tax rates changed for Taylor, Pelham, Arab, and Woodland.

In Arkansas, tax rates changed for Blytheville, Elm Springs, Green Forest, Keiser, Monette, Osceola, Pocahontas, Vilonia and Hempstead County.

In Arizona, tax rates changed for Yuma County.

In California, tax rates changed for San Fernando.

In DC, the state tax rate changed.

In Georgia, tax rates changed for Pierce County.

In Kansas, tax rates changed for Andover, Goodland, Harper, Mound Valley, and the counties of Ellis, Chase, Graham, Miami and Reno.

In Maine, the state tax rate changed.

In North Dakota, tax rates changed for Crosby and Lidgerwood.

In Ohio, tax rates changed for Erie County.

In Oklahoma, tax rates changed for Broken Bow, McCurtain, Sallisaw, and Wetumka.

In Texas, tax rates changed for Gregory, Reno, White Deer, Presidio, Trophy Club, Breckenridge, Bryson, Claude, Drum, Lakeside, Lavon, Odern, Olton, Petersburg, Riesel, Rising Star, Sachse, Stockdale, and Wheeler.

In West Virginia, tax rates changed for Charleston, Harrisville, Quinwood and Wheeling.

In Wyoming, tax rates changed for Crook County.

There were 45 states with ZIP code changes effective after September 2013 including Alabama, Arkansas, Arizona, California, Colorado, Connecticut, DC, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.  Download a complete list of the ZIP code changes.

For September’s changes click here.

Angel Sauer

Angel Sauer, lead tax researcher

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