Completely Compliance:
Q4 2023

Written by: Adore Walker

Effective September 1, 2023, the rate for grocery food was reduced to three percent. The reduction was a result of HB 479, which passed in June. In addition to the 2023 reduction, the rate will further reduce in 2024 to 2%.

Written by: Adore Walker

Previously in Alabama, when a taxpayer’s monthly liability exceeded $5,000, they were required to make estimated monthly payments. Effective October 1, 2023, this threshold changed to $20,000. The state will send a notification if a taxpayer meets the qualification. If it is determined that a taxpayer no longer qualifies with the new requirement, a credit may be taken on the September return for the August payment. Payment calculations can be found on the notification issued by the state.

Written by: Daniel Tilson

The Alaska Remote Sellers Sales Tax Commission (ARSSTC) has announced that the city of Old Harbor has met the requirements to join the ARSSTC and started collecting a remote sellers sales rate of 3% on September 1, 2023.

Written by: Adore Walker

Effective September 13, 2023, Governor Kemp suspended the tax on motor fuel between September 13 and October 12, 2023. The suspension applies to the retail purchase or sale, consumption, or storage of fuel and applies to all fuel types liable for the excise tax.

Written by: Daniel Tilson

Hawaii Tax Online (HTO) has updated its ACH prenote verification process in accordance with National Automated Clearing House (NACHA) guidelines.

This change only applies to taxpayers using a bank account for the first time. The process sends verification to the taxpayer’s financial institution to validate the routing and bank account information before sending the ACH request for payment. This is to help reduce the number of failed or returned ACH transactions due to incorrect bank account information.

During the prenote verification process, payments may take up to 2 to 7 business days to be applied to tax accounts. Delays for payments made during non-business days may cause accounts to show “red” with an outstanding balance. To verify that a submission has been made, navigate to the “Search Submissions” tab on your online account. As long as the submission is made and has not been marked “rejected” or “deleted,” allow time for the payment to process through the prenote verification. The pending payment will keep the original effective date once applied to the account.

Written by: Zachary McCauley

Effective January 1, 2024, oversight of Louisiana’s uniform local sales and use tax return and remittance system will be shifted to the Louisiana Uniform Local Sales Tax Board from the Louisiana Department of Revenue. Helping guide the new Tax Board, the Uniform Electronic Local Return and Remittance Advisory Committee will also enforce design and maintenance recommendations.

The current local sales and use tax filing system, Parish E-File, will still be available to users until the new Tax Board presents an approved system as a replacement.

The deadline for this new system is no later than January 1, 2026.

Written by: Andrea Morrison

Per Information Release CAT 2023-01, there are various changes to CAT tax thresholds. First, the general exclusion amount will gradually increase over the next two years. In 2024, the exclusion will increase from $1 million to $3 million. In 2025, the exclusion will increase again from $3 million to $6 million. Any business that falls below these amounts in taxable gross receipts will not be liable for remittance. Second, the annual minimum tax is being eliminated as well as the annual filing option. These changes will take effect on January 1, 2024.

Written by: Christina Stainbrook

Effective July 1, 2023, Public Chapter 467 (2023) expanded the eligibility criteria for the repossession sales and use tax credit. To be eligible for this extended credit, the dealer must meet the following conditions:

• Primarily (at least 50% or more) engage in the sale of used automobiles
• Collect a down payment averaging not more than 5% of the sales price of the automobile
• Transfer 100% of its security instruments to a finance company affiliated with the dealer, and this finance company must have its physical headquarters located in Tennessee, the same as the dealer’s
• Front the sales tax amount on each purchase from its own funds
• Reimburse the finance company for the sales tax that the finance company is unable to collect from the purchaser

Additionally, the affiliated finance company should have the authority to repossess or enforce any necessary actions related to the transactions.

Written by: Christina Stainbrook

HB7012/SB7085 (2023), which takes effect on November 1, 2023, establishes a permanent exemption from sales and use tax for firearm safes and firearm safety devices.

Definition of Firearm Safes: A “firearm safe” is described as a locking container or another enclosure (excluding glass-faced containers) that comes equipped with a padlock, key lock, combination lock, or another locking mechanism specifically designed and intended to securely store one or more firearms.

Definition of Firearm Safety Devices: A “firearm safety device” is defined as either (1) a device that, when installed on a firearm, is engineered to prevent the firearm from being operated until the device is deactivated or (2) a device intended for attachment or installation on a firearm, designed to prevent the operation of the firearm by anyone who lacks authorized access to it.

Written by: Amanda Bratton

Effective October 1, 2023, the retailer’s discount in Wisconsin changed from 0.5% to 0.75%. In addition, the maximum allowable amount of the discount increased from $1,000 to $8,000.