Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: Which state’s Department of Revenue recently issued guidance to remote sellers providing that while a remote seller is not required to collect tax on its first $100,000 in sales for purposes of determining when economic nexus first begins, remote sellers should advise purchasers they have a use tax obligation if no tax is collected on the sale?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card.

Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!

In a recently published private letter ruling, the Kentucky Department of Revenue concluded that a taxpayer’s service via a Software as a Service (SaaS) model was not a transfer or sale of tangible personal property, and therefore not a taxable transaction. The taxpayer in the ruling charged for access and use of its web-based software, which also included a free downloadable application to enhance the SaaS product. The ruling stated even though the optional application is a pre-written software component, it is offered for free and is a de minimis portion of the offering, and therefore does not convert the SaaS product into a taxable bundled transaction.

In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay welcomes Jared Walczak, Vice President of State Projects at the Tax Foundation.

Jared begins the conversation by providing background on the work of the Tax Foundation, as well as his role within the organization.

He then shares his perspective about state tax revenues during the pandemic and beyond. Jared also discusses how the economic situations have informed the organization’s work of the past year and how that is likely to differ from what he expects to focus on in 2022. Jared and Nikki also touch on the Build Back Better Act.

Then, they wrap up with Nikki’s surprise non-tax question, this time focused on travel – what’s your favorite thing to do when visiting a new state on a work trip?

The Eversheds Sutherland State and Local Tax team has been engaged in state tax policy work for years, tracking tax legislation, helping clients gauge the impact of various proposals, drafting talking points and rewriting legislation. Partner Nikki Dobay, who has an extensive background in tax policy, hosts this series, which is focused on state and local tax policy issues.

Questions or comments? Email SALTonline@eversheds-sutherland.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

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The Ohio Department of Taxation recently issued an FAQ addressing the gross receipts calculation regarding remote sellers’ registration and tax remittance requirements. Following South Dakota v. Wayfair, Ohio required remote sellers to register with the Department and begin collecting sales tax if the seller had greater than $100,000 in gross receipts or at least 200 transactions in either the current or previous calendar year. The FAQ reminds taxpayers that for purposes of calculating the $100,000 economic nexus threshold, gross receipts only includes receipts from retail sales. Thus, while receipts from enumerated services are used when determining the economic nexus threshold, receipts from non-enumerated services and receipts from sales for resale also do not count toward a taxpayer meeting the $100,000 threshold, but the FAQ does not address whether sales for resale count toward the 200 transaction threshold.

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: On a recent SALT Shaker Podcast, Partner Nikki Dobay discussed a recently-introduced ballot initiative in which state?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card.

Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!

This week, Eversheds Sutherland is a proud sponsor of the virtual New England State and Local Tax Forum. Partner Breen Schiller will cover key issues facing combined filers in 2021.

In addition, Partner Jeff Friedman will present a virtual multistate tax update during the New Jersey Society of Certified Public Accountants Multistate Tax Conference on November 19, addressing the most significant state and local tax litigation and legislation that has taken place across the nation in the past year affecting income, sales and use, and business activity taxes.

View and learn more about past and upcoming events and presentations for the SALT team.

Last week, the Multistate Tax Commission (MTC) held its Fall Executive Committee and Uniformity Committee Meetings (in person) in Alexandria, Virginia. During the Executive Committee Meeting, MTC staff approved California’s participation as a sovereignty member. The Uniformity Committee Meeting focused on discussing the status of its current projects, held its state roundtable, and proposed a study of its special industry apportionment regulations.

Read the full Legal Alert here.

On this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Counsel Michael Hilkin from the firm’s New York office. Michael provides an overview of the New York False Claims Act and its recent prevalence and expansion in the state.

Jeremy and Michael also discuss two False Claims Act cases recently litigated in New York, and how those cases inform the balance of power between the New York Attorney General’s Office and the New York Department of Taxation and Finance in enforcing New York tax laws.  Finally, they conclude their False Claims Act discussion with an examination of the impact on taxpayers.

Continuing tradition, they end their conversation with Jeremy’s favorite – overrated or underrated? This week, they cover doughnuts.

Questions or comments? Email SALTonline@eversheds-sutherland.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Kansas’s remote seller law became effective July 1, 2021, one of the last states to adopt sales tax nexus requirements for remote sellers. As part of implementing the new law, the Department of Revenue recently issued guidance to remote sellers providing that while a remote seller is not required to collect tax on its first $100,000 in sales for purposes of determining when economic nexus first begins, remote sellers should advise purchasers they have a use tax obligation if no tax is collected on the sale. Once the $100,000 threshold is passed, remote sellers must begin collecting and remitting sales tax on any further sales to Kansas customers.  In addition, for purposes of determining when a remote seller passes the $100,000 threshold, all sales made by the remote seller to Kansas customers count toward the threshold, regardless of whether the item purchased is actually taxable.

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: In our latest SALT Scoreboard, we included our view of the Ohio Supreme Court’s decision on which city’s billboard excise tax?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card.

Answers will be posted on Saturdays in our SALT Shaker Weekly Digest. Be sure to check back then!