Completely Compliance:
Q3 2023

Written by: Daniel Tilson

Beginning July 1, 2023, tenants of Colorado Mills will switch from using the City of Lakewood’s tax portal to Amenity Colorado for reporting and paying their Public Improvement Fees (PIF). This change affects businesses located within the designated area and does not impact the process of filing and paying City of Lakewood sales tax. PIF collected in May 2023 will still follow the usual procedure and be paid to the City of Lakewood by June 20, 2023. Beginning June 2023, PIF fees will be paid through Amenity Colorado, with no changes to the collection method or reporting and payment deadlines. It is important to note that any PIF payments mistakenly made to the City of Lakewood starting in July 2023 will not be credited to the Amenity Colorado PIF account. Refunds must be requested from the City of Lakewood, and current PIF liabilities should continue to be paid through Amenity Colorado to avoid late fees or penalties.

Recipients of the memorandum are advised to register their businesses with the Amenity Colorado PIF portal in preparation for the change. For any inquiries, contact Lakewood at 303-987-7630 or Elk Valley Public Improvement Corporation at 720-884-7700 or 720-849-2142.

Written by: Adore Walker

Below is a listing of the 2023 sales tax holidays in the state of Florida.

Written by: Amanda Bratton

As an update to the article in Quarter 2 Completely Compliance, Governor Walz signed HF2887, which imposes a retail delivery fee similar to that in Colorado. The fee is $0.50 per transaction and is imposed on any retailer with sales over $1 million in the prior calendar year. It will be effective July 1, 2024.

Written by: Christina Stainbrook

The North Carolina 911 Board made a decision on February 24, 2023, to reduce the 911 service charge for prepaid wireless telecommunications by $0.10. Starting on July 1, 2023, the service charge for prepaid wireless telecommunications will decrease from $0.65 to $0.55. This new rate will be applicable to all retail purchases of prepaid wireless telecommunications made in North Carolina on or after July 1, 2023.

It’s important to note that the 911 service charge for prepaid wireless telecommunications is separate from the sales tax applied to the sale or recharge of prepaid telephone calling service.

Written by: Andrea Morrison

House Bill 45 introduces a tax amnesty program for delinquent taxes and fees in Ohio. It defines “qualifying delinquent taxes and fees” as certain unpaid taxes and fees, excluding those with assessments or audits issued after a specific effective date. At any time in calendar year 2023 before November 1, 2023,​​ ​​​​​the Director of Budget and Management can determine the need for a tax amnesty program if additional proceeds are required from the General Revenue Fund in the specified calendar year. If necessary, the Tax Commissioner establishes and administers the program for two months, providing forms and instructions, and publicizing it for maximum participation.

During the program, participants who pay the full amount of qualifying delinquent taxes and fees (excluding interest and penalties) have their accrued interest and penalties waived. They may be required to file returns or reports related to their payments. Those who fully pay outstanding taxes and fees are immune from criminal prosecution, civil action, and future assessments, except for taxes and fees due after the effective date of the section. Taxes and fees collected under the program are treated the same as other taxes and fees of the same type in terms of credit, distribution, and usage.

Written by: Andrea Morrison

The Ohio “Back to School” sales tax holiday will kick off on August 4, 2023 and run through August 6, 2023. Clothing under $75, school supplies less than $20, and instructional material less than $20 will be exempt from sales tax during this timeframe.

During the program, participants who pay the full amount of qualifying delinquent taxes and fees (excluding interest and penalties) have their accrued interest and penalties waived. They may be required to file returns or reports related to their payments. Those who fully pay outstanding taxes and fees are immune from criminal prosecution, civil action, and future assessments, except for taxes and fees due after the effective date of the section. Taxes and fees collected under the program are treated the same as other taxes and fees of the same type in terms of credit, distribution, and usage.

Written by: Amanda Bratton

South Dakota will remove the “two hundred or more separate transactions” threshold for remote sellers as of July 1, 2023. However, the $100,000 threshold will remain in effect, requiring remote sellers to obtain a South Dakota sales tax license once their gross sales have exceeded that mark.

Written by: Zachary McCauley

Effective May 17, 2023, Public Chapter 455 (2023) brings about a reduction in the maximum limit for aviation fuel tax. This legislation specifically decreases the cap on the remittance of aviation fuel tax for commercial aircraft operated by certified or licensed air carriers with transportation hubs in Tennessee. Previously, the cap was set at $8.5 million for the tax year spanning July 1, 2021, to June 30, 2022, and at $5 million for subsequent tax years. However, according to Pub. Ch. 455, the cap will remain at $5 million until June 30, 2023. Thereafter, it will be further lowered to $3 million for the period between July 1, 2023, and June 30, 2024, and to $1 million for tax years occurring on or after July 1, 2024.

Written by: Christina Stainbrook

Between August and October 2023, sales tax on food and food ingredients sold in grocery stores in Tennessee will be waived. As a result, the average Tennessee family will be able to save more than $100 on taxes during this period. Furthermore, the state will reimburse local governments for any lost tax revenue.

Written by: Christina Stainbrook

The Virginia Department of Taxation has released the 2023 Legislative Summary, providing an easily accessible resource that serves as a guide to the state and local tax laws passed during the 2023 Session of the General Assembly, which encompasses the reconvened session held on April 12, 2023. Below is a summary outlining any applicable changes related to transaction taxes.

House Bill 2479 (Chapter 678) and Senate Bill 1522 (Chapter 671) have introduced an extension to the Data Center Retail Sales and Use Tax Exemption until 2040. This extension applies to data center operators that meet specific criteria within a defined time frame. Starting from January 1, 2023, but before July 1, 2035, a data center operator must invest a minimum of $35 billion in data centers within specified localities mentioned in a Memorandum of Understanding (MOA). Additionally, they must create a minimum of 1,000 new full-time jobs, with at least 100 jobs paying 1.5 times the prevailing average wage in the Commonwealth.

If a data center operator meets these conditions, they become eligible for a further extension until 2050. To qualify for this extended exemption, the operator must make a total capital investment of at least $100 billion, which includes the initial $35 billion investment. Moreover, they must create a total of at least 2,500 new full-time jobs, with at least 100 jobs paying 1.5 times the Commonwealth’s prevailing average wage, taking into account the initially created 1,000 jobs.

House Bill 1563 (Chapter 516) and Senate Bill 1240 (Chapter 517) have broadened the scope of the Retail Sales and Use Tax Agricultural Exemption. This expansion now includes specific property that is directly involved in the production of agricultural products within an indoor closed, controlled-environment, commercial agricultural facility. The eligible property encompasses both internal and external machinery, equipment, and structural components, regardless of whether they are permanently attached to real property. The requirement is that these items are necessary for creating, supporting, and maintaining the optimal growing environment for horticulture, floriculture, viniculture, or other farm crops.

This exemption also covers contractors who are involved in constructing these facilities. However, it’s important to note that the exemption does not apply to property used in the production of cannabis or any of its derivatives.

House Bill 1677 (Chapter 35) introduces a new exemption from the Retail Sales and Use Tax specifically for labor charges related to diagnostic work in automotive repair and emergency roadside service for motor vehicles. This exemption applies regardless of whether there is a sale of repair or replacement parts or a shop supply charge. Previously, under existing law, charges for diagnostic services were only exempt from the Retail Sales and Use Tax if they were not associated with the sale of tangible personal property, or if the tangible personal property exchanged had little significance in the overall transaction.