Sales and/or use tax changes for November 2013

November 2013

November 2013

Sales and/or use tax rates in the state of Tennessee have changed in Zip2Tax products since October 2013.

In Tennessee, tax rates changed for Atoka and Munford.

There were 15 states with ZIP code changes effective after October 2013 including Arizona, California, Georgia, Iowa, Indiana, Kentucky, Minnesota, Missouri, Mississippi, North Carolina, New Jersey, New York, Ohio, Pennsylvania and Virginia.

Download the full ZIP code change documentation.

For October’s changes click here.

November 2013

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:

North Carolina
North Dakota
New Jersey
New Mexico
New York
Rhode Island
South Carolina
South Dakota
West Virginia

Amazon’s vested interest in universal online sales tax

universal online sales tax

universal online sales tax

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.

Tennessee exemption certificates authentication

exemption certificates

Tennessee exemption certificates authentication

The Tennessee Department of Revenue has made it easier for merchants to verify the sales tax exempt status before a transaction has been completed. They are offering an online search at their web site,, to verify the status of exemption certificates by typing in the account number and selecting the type of certificate.

The vendor is still held responsible to maintain a valid copy of the certificate for their files as this online verification keeps all business details private.Certificates of resale, nonprofit exemption certificates, and agricultural exemption certificates can be verified using this site.

Other types of exemptions may be verified by contacting the department of revenue’s contact center at 800-342-1003 (toll-free within Tennessee) or  (615) 253-0600 (Nashville-area and out-of-state) from 7:00 am-5:00 pm, Central time, Monday through Friday, excluding holidays.

Sales and use tax changes for December 2012

December 2012

December 2012

Angel Sauer

Angel Sauer, sales tax research team leader

Sales and/or use tax rates in the states of Alabama, Arizona, Oklahoma, and Tennessee have changed in Zip2Tax products effective Dec. 1, 2012.

In Alabama, tax rates changed in the city of Mobile.

In Arizona, tax rates changed for the city of Glendale.

In Oklahoma, tax rates changed for the city of Locust Grove.

In Tennessee , rates changed for the city of Millington.

There were 32 states with ZIP code changes effective after November 2012 including Alaska, Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, North Carolina, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Virginia, Wisconsin, and West

Download a complete list of the ZIP code changes.

For November’s changes click here.  To see upcoming changes for 2013 please read this.

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