Stay informed on transaction tax compliance developments throughout each quarter of the year with our Completely Compliance blog series. The information included in this post summarizes the second quarter of 2023.
Written by: Daniel Tilson
Effective March 1, 2023, the maximum amount of sales tax due on a transaction in the City of North Pole increased. The 5.5% sales tax rate remained the same; however, the maximum amount of sales tax collectible increased to $16.50. This means that only the first $300 of the selling price of a transaction is now taxable.
Beginning on March 1, 2023, the city of Dillingham discontinued its 1% timely filing vendor fee (timely filing discount).
Written by: Daniel Tilson
Effective April 1, 2023, CDTFA Online Services requires all accounts to access online services with a USERNAME and PASSWORD. Limited Access Codes will no longer be provided for monthly filing.
Letters of notice will be mailed to business addresses of record for accounts that do not have an online account login set up. These letters will include security code(s) to help set up the new login information.
Written by: Amanda Bratton
The Washington Tax Structure Work Group began discussions in 2022, working to remove the Business and Occupation (B&O) Tax and replacing it with a Margin Tax or a modified gross receipts tax. Among other items, the Group will structure recommendations to the state legislature. If passed, the discontinuance of the B&O Tax and the emergence of the Margin Tax would be effective January 1, 2027.
Written by: Daniel Tilson
HB23-1017 was introduced in January with proposed changes to the current SUTS system. Currently, registering with local jurisdictions is not required prior to filing through the state SUTS system. The bill requires locally issued account numbers to be included in the filing. In addition, the bill would require improvements on filing zero returns and allow for more bulk and spreadsheet filing through the system.
Written by: Daniel Tilson
While it hasn’t had much traction yet, HB23-1166 was introduced in February and would repeal the Retail Delivery Fee, which was created in 2022. If passed, the fee would only be collected for the 2022-2023 fiscal year.
Written by: Amanda Bratton
Similar to Colorado, HF580 was introduced in the state of Minnesota in January and would impose a Retail Delivery Fee. The fee would be collected from the customer upon delivery. If passed, effective January 1, 2024, $0.40 would be imposed until July 1, 2025, when it would increase to $0.45 and again to $0.50 on July 1, 2027. There has been little movement since the bill was introduced.
Written by: Shawn Soomro
SB591 proposes a 2% discount to vendors for the timely remittance of sales tax. The bill was introduced in January and is capped at $3,300 each month.
Written by: Adore Walker
S0076 was introduced on February 1, 2023, and proposes to reduce the sales tax rate from 6% to 5%. It has been referred to the Finance Committee.
Written by: Daniel Tilson
SB1325 made its way to the House on March 21, 2023. The bill would allow for remote sellers to pay a flat rate for municipal tax instead of reporting individually. A remote seller must be approved to transition to this format. If passed, it would be effective January 1, 2024, with the flat rate updating after each fiscal year to accommodate changing municipal needs.
Written by: Shawn Soomro
Effective January 1, 2024, all taxpayers with an average liability of $5,000 or more between June 30th and July 1st of the following year are required to file electronically.
Written by: Adore Walker
A05103 proposes to remove the sales and use tax and excise tax on mobile telecommunication services. The bill would also allow local jurisdictions to eliminate the tax as well. It was introduced and referred to Ways and Means on March 2, 2023.
Written by: Amanda Bratton
The state sales tax rate in South Dakota could reduce from 4.5% to 4.2%. SB112 has been sent back to the Senate with amendments.
Written by: Shawn Soomro
Currently, local counties and cities in Alabama are not permitted to provide a reduced rate on grocery foods. HB15 was introduced in February and had a first read on March 7, 2023. It proposes to allow local municipalities to impose a reduced rate or elimination of a sales and use tax rate on food.
Written by: Amanda Bratton
SF550 contains a multitude of changes, most notably changing the state sales and use tax rate from 6% to 7% beginning January 1, 2025 and ending December 31, 2050. It would also eliminate the 1% local option sales and services tax (LOT). The bill was approved by committee on March 9, 2023.