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 second quarter of 2022.
Written by: Daniel Tilson
The Alaska Municipal Sales Tax Program (AMSTP) was established to help local Alaskan communities collect sales tax for businesses that have a physical presence in those communities.
The following communities are participating:
AMSTP is utilizing Munirevs for filing. Additional information can be found on the AMSTP Munirevs Portal at https://amstp.munirevs.com/ and https://amstp.munirevs.com/faq/.
Written by: Daniel Tilson
The Ketchikan Gateway Borough and City of Ketchikan in Alaska have announced that October 1, 2022 will be a Sales Tax Holiday. The duty for sellers to collect sales tax will be suspended for the one day. A seller can elect not to participate and continue to collect sales tax as usual.
Sellers must report and remit collection of sales tax as normal. If the seller does not collect sales tax, they must still report exempt sales on their regular tax return.
The following transactions are not exempt from the sales tax holiday:
Written by: Daniel Tilson
Colorado House Bill 22-1406, which renews for July, August, and September 2022, allows a temporary deduction in state net taxable sales equal to the lesser of state net taxable sales or $70,000 for those months and for specific industries as follows::
Written by: Shawn Soomro
SB 2514 was signed by Governor DeSantis on June 2, 2022. The bill changes the threshold on e-filing returns. Currently, the e-filing threshold for sales and use, gross receipts, and communications tax is $20,000 in taxes paid in the prior fiscal year. Effective January 1, 2023, the new threshold will be $5,000.
Written by: Claire Ashcraft
Public Act 102-0700 suspends the 1% tax on groceries until June 30, 2023. Groceries include any food for human consumption that is not consumed at the site of its purchase. Groceries do not include soft drinks, alcohol, candy, or prepared food consumed on site. The zero grocery rate was effective July 1, 2022.
Written by: Amanda Bratton
Effective July 1, 2022, businesses no longer need to register for separate consumer’s use, retailer’s use, and sales tax permits for Iowa. Instead, these tax types will be merged into a single sales and use tax permit. Similarly, these taxes will be combined onto a single sales and use tax return. Returns and payments will either be completed annually or monthly, depending on liability. Quarterly returns and deposit payments have been eliminated. The Iowa Department of Revenue will automatically make these changes to existing accounts, so no action is required on behalf of the taxpayer.
Written by: Shawn Soomro
Louisiana is a state that allows each parish to administer its own local tax, with registrations and remittances processed by the respective parish departments. After Wayfair, the state created the Louisiana Sales and Use Tax Commission for Remote Sellers, which allowed for a single point of registration and remittance for remote sellers. On June 18, 2022, SB 235 was signed to allow for the Commission to also collect non-remote seller tax if a parish “opts-in” to the program. The changes will be in effect on January 1, 2023.
Written by: Claire Ashcraft
Maine has started rolling out its new tax portal as a way to integrate all tax types administered by Maine Revenue Services into a single system. The new portal will be implemented over a four-year period, from October 2021 to October 2024, with each phase adding more tax types and programs. As tax types and programs are added to the Maine Tax Portal, they will be phased out of I-File, MEETRS, and EZ-PAY.
View general information, webinars, and training for the Maine Tax Portal.
Written by: Adore Walker
Changes with New York motor fuel and diesel motor fuel tax went into effect on June 1, 2022. The excise tax, prepaid sales tax, and MCTD taxes are suspended until December 31, 2022. In addition, there are select local jurisdictions that have elected to begin calculating the tax on a cent-per-gallon basis instead of a percentage.
A listing of the local jurisdictions is available on the website, and more information can be found in Publication 718-F.
Written by: Daniel Tilson
On June 30, 2022, the Governor of Puerto Rico approved Act 52-2022 (“Act 52”), creating significant changes to the Puerto Rico Internal Revenue Code (PRIRC) to include Sales and Use Tax.
Regarding Sales and Use Tax, Act 52 amended Section 4042.03(a)(2)(A) of the PRIRC and implemented an end date of June 2022 to the requirement of semi-monthly sales and use tax deposits for taxpayers whose monthly deposits averaged over $2,000. These taxpayers are no longer required to make the bi-monthly deposits starting in July 2022 but are still responsible for previous periods for which deposits were due.
Written by: Zachary McCauley
Tennessee announced that it now allows for vendor’s compensation, effective July 1, 2022. Vendors will be allowed to deduct 2% from the tax collected but may not exceed $25. The vendor’s compensation will only apply to the state portion of the tax, and not the local tax, and will be available until June 30, 2023.
Written by: Daniel Tilson
As of June 17, 2022, Virginia no longer requires the Accelerated Sales Tax.
Virginia passed House Bill 29 on June 17, 2022, eliminating the requirement that certain vendors pay an Accelerated Sales Tax (AST) for periods beginning after June 30, 2021. Past AST payments (June 2021 and prior), penalties, and interest remain due and collectible.
For additional information, please see VA Tax Bulletin 22-10 and VA HB 29 Item 3-5.06.
Written by: Zachary McCauley
More local jurisdictions will enact the disposable bag fee, which is a tax of $0.05 per bag. Loudoun County recently adopted the tax effective July 1, 2022, and more localities will adopt the tax effective January 1, 2023. Below is a listing of all jurisdictions that currently have or will soon have the tax.