Written by: Brian Rash

Stay informed on tax compliance developments throughout each quarter of the year with our Completely Compliance blog series. The information included in this post summarizes the first quarter of 2022.

Updates by State

  • JUNEAU CHANGES DISCOUNT

    Effective December 1, 2021, the City of Juneau changed the vendor fee discount to a flat $30, and it may not exceed tax remitted. The system automatically zeros tax due and adds back any tax after the discount.

    ALASKA COULD IMPOSE SALES TAX

    Once again, the state of Alaska is considering a bill that would enact a state sales tax. HB4005 was referred to the Ways and Means Committee on October 4, 2021. If passed, it would authorize the Department of Revenue to enter into a Streamlined Sales Tax Agreement and create a 2% sales tax on tangible personal property (TPP) and services as well as a use tax of 2%. The collected tax would need to be remitted to the state at the end of each month effective July 1, 2022.

    MORE ALASKA LOCALS JOIN THE ARSSTC

    The listing below includes cities who have joined the Alaska Remote Seller Sales Tax Commission since the last newsletter and filing can now be made through the portal in lieu of a direct return to the city. This is applicable only to remote sellers.

     

    Sales Tax Jurisdiction

     Effective Date
    City of Kotzebue 1/1/22
    City of Aniak 10/1/21
    City of Nenana 10/1/21

  • The City of Phoenix has announced that it will increase the threshold on single item purchases of tangible personal property (TPP). Previously, any sale of a single item with a value over $10,968 was to be reported on a two-tier system. The new threshold is $11,631 and is effective January 1, 2022.

  • COLORADO SIMPLIFICATION TAS FORCE PROPOSES BILLS

    The Colorado Sales and Use Tax Simplification Task Force is proposing two bills to further assist retailers who reach economic nexus thresholds. Bill 1 proposes to eliminate local licensing fees if the retailer has a state license, makes sales into the local jurisdiction, and does not have physical presence. If passed, the bill will be effective July 1, 2022. Also, by July 1, 2023, the bill proposes to eliminate the requirement to register with each jurisdiction. Instead, the local jurisdiction would automatically issue a license at no cost. It is important to note that this bill only pertains to local jurisdictions who participate in the SUTS filing with the state.

    In addition, the task force proposes Bill 4 which will extend the exemption for small retailers (below $100,000 in annual sales) to collect using destination-sourcing. If passed, a small retailer may continue collecting and remitting based on physical location until October 1, 2022.

    COLORADO LOCAL ECONOMIC NEXUS

    With the new SUTS system in place, many local jurisdictions are on board with economic nexus ordinances. The Colorado Municipal League provides a model ordinance for self-administered local jurisdictions to use as a template. Of the 71 Colorado home rule jurisdictions, 49 (with 5 more coming onboard soon) have adopted a $100,000 economic nexus ordinance for sales into the respective boundaries. It is important to note that while companies may not have had nexus at the local level before, they may now. A listing is provided in the link. The state SUTS system provides a single site for remittance; however, registrations must occur with the local jurisdiction.

  • The state of Connecticut announced a tax amnesty program at the end of October 2021. Starting in November 1, 2021 and running through January 31, 2022, all penalties will be waived and interest reduced by 75%. Non-reported or under-reported tax will apply up to the December 31, 2020 period.

     

  • By February 4, 2022, business filers will need to transition their eFile & Pay accounts to the new site called govconnectiowa. After this date, the old system will be disabled and no longer accessible.

  • LOUISIANA FILLING REQUIREMENTS

    Per Bulletin No. 21-028, beginning with the December 2021 tax period, consolidated filers in Louisiana will be required to file electronically. In addition, consolidated filers will be required to submit a Schedule B which will breakout each Louisiana location.

    SALES TAX PAYMENTS TO PLAQUEMINES PARISH, LOUISIANA

    Plaquemines Parish will no longer accept payments through the Sales Tax Online system. To make electronic payments, you must register through the Parish Efile system. The new process goes into effect January 1, 2022.

    NEW EFILE MANDATES IN LOUISIANA

    Consolidated filers in the state of Louisiana are now required to file electronically through the LATAP system. In addition, a Schedule B is required to be submitted along with the return. The Schedule B will break out the tax by the specific locations.

  • HB 45, if passed, will create a tax amnesty program from July 1, 2022 through August 31, 2022. The bill outlines the requirements of the Tax Commissioner and some parameters of the program. It was introduced in February, passed the House on December 8, and has moved to committee in the Senate.

  • The state of Rhode Island has issued a notice that their new taxpayer portal is up and ready to use. The old portal will be closed down on January 4, 2022 and cannot be used to make payments. To register for the new portal, you will need the FEIN and a PIN from the Division of Taxation.

  • Originally passed in the 2020 session, the state of Virginia allows local cities and counties to impose a plastic bag fee of $0.05 per bag. The following jurisdictions have enacted the ordinance:

    • Alexandria City beginning January 1, 2022
    • Arlington County beginning January 1, 2022
    • Fairfax County beginning January 1, 2022
    • Fredericksburg City beginning January 1, 2022
    • Roanoke City beginning January 1, 2022

  • Effective January 1, 2022, the Village of Ephraim will join the list of towns that have enacted a Premier Resort Area Tax. The tax is 0.5% and will be applicable to sales occurring within the Village limits.