THE BEST AND WORST OF SALES TAX ADMINISTRATION...THE BEST AND WORST OF SALES TAX ADMINISTRATION APRIL 2018 by Karl Frieden & Fred Nicely1 1 Karl Frieden is COST’s Vice President

THE BEST AND WORST OF SALES TAX ADMINISTRATION

APRIL 2018by Karl Frieden & Fred Nicely1

1 Karl Frieden is COST’s Vice President and General Counsel and Fred Nicely is COST’s Senior Tax Counsel. The authors would like to express their

gratitude to Kavya Rajasekar, recipient of the 2017 Georgetown University Law Center Fellowship at COST, Sonia Shaikh, COST Research Fellow,

and Gordon Yu, COST Research Fellow, for their dedicated efforts in researching and compiling the survey results used to develop this report.

2 Since 2001, the Council On State Taxation (COST) has issued scorecards reviewing the states’ overall tax administration. More recently, first in

2007 with its issuance of an unclaimed property laws scorecard and in 2009 with its issuance of a property tax administrative scorecard, COST

has conducted a more detailed review of administrative practices on select areas of state law. COST Studies (and those of our research arm, the

State Tax Research Institute (“STRI”)) are available at: http://cost.org/state-tax-resources/cost-studies-articles-and-reports/.

3 As used in this Scorecard, unless clearly meant to be used in a different context, the term “sales tax” includes the states’ compensatory “use taxes”

and also includes taxes in states that use nomenclature such as gross receipts, excise or privilege taxes that are the functional equivalent of a sales

tax (e.g., tax has a sale for resale provision). Alaska, Delaware, New Hampshire, Montana, and Oregon are the five states without state sales taxes. Note,

however, that over 100 local governments in Alaska impose a sales tax and most of these states have state and local excise taxes on lodging, etc.

4 See EY/STRI/COST “Total State and Local Business Taxes” study issued August 2017, available at: http://cost.org/globalassets/cost/state-tax-resourc-

es-pdf-pages/cost-studies-articles-reports/fy16-state-and-local-business-tax-burden-study.pdf.

TABLE OF CONTENTSExecutive Summary .................................................1

Separating the Top from the Bottom States ..........2

Introduction to COST ..............................................2

Grading the Sales Tax States ....................................3

Objectivity of the Scorecard .................................3

Scoring System .....................................................3

Summary Grading Chart ..........................................7

Details of Sales Tax Administration Categories ........8

Exemption for Business Inputs ............................8

Fair Sales Tax Administration ................................9

Centralized Sales Tax Administration ..................11

Simplification and Transparency.........................12

Reasonable Tax Payment Administration ............14

Fair Audit and Refund Procedures ......................16

Other Issues .......................................................17

Scorecard Questions as Initially Presented to Taxpayers, Practitioners & Goverment Officials ...........................................18

Scorecard Detailed by State ...................................20

EXECUTIVE SUMMARYThis Scorecard on State Sales and Use Tax Adminis-tration (“Scorecard”) is the first COST scorecard fo-cusing on specific sales tax administration issues.2 All but five states impose sales taxes,3 which in fiscal year 2016 raised over $363 billion in tax revenue for the remaining states (and their localities). This figure represents twenty-two percent of the states’ total tax collections.4 The goal of this Scorecard is similar to the other scorecards issued by COST: to improve tax administrative systems and therefore ultimately increase compliance. It is our experience that tax-payers are more willing to comply with a tax system they perceive to be balanced, fair, and effective. Sales tax administrative systems that violate basic prin-ciples of fairness and efficiency make compliance for sellers and purchasers more difficult and hinder states’ efforts to modernize their sales tax bases.

The Scorecard objectively evaluates state statutes and rules that govern state and local tax depart-ments’ administration of their sales taxes. Important-ly, the states’ differences in tax rates and breadth of the tax base (other than taxing business inputs) are not part of the evaluation. Additionally, other issues such as equal statutes of limitations and interest rates that are already addressed in COST’s Administrative

2

Scorecard, while important to fair sales tax adminis-tration, are not included in this Scorecard to avoid duplicative scoring of state administrative practices.5 This Scorecard evaluates state sales taxes on their effectiveness in taxing personal consumption (and not business inputs), and on implementing uniform, fair, and centralized administration of their sales tax-es.6 To accomplish these purposes, the Scorecard is divided into the following categories:

• Extent of taxation of business inputs or pyramid-ing of sales taxes;

• Fair sales tax administrative practices;

• Uniformity of state and local sales tax bases and centralized administration;

• Simplification and transparency of the sales tax;

• Reasonable tax payment and credits administra-tion; and

• Fair audit and refund procedures.

Similar to other COST scorecards, we also include an “Other Issues” category to capture adverse sales tax administrative practices not directly or sufficiently covered in the above listed six categories.

5 COST’s most recent version of its “Best and Worst of State Tax

Administration Scorecard” is available at: http://cost.org/globalas-

sets/cost/state-tax-resources-pdf-pages/cost-studies-articles-reports/

final-scorecard-in-templateupdatedbookmarked.pdf.

6 In general, the review is based on 2017 laws and regulations, with

some 2018 legislative changes taken into account.

Separating the Top from the Bottom States

The four top states (Indiana, Michigan, Ohio and Wis-consin) share key elements of sales tax administra-tion that separate them from other states. All are full members of the Streamlined Sales and Use Tax Agree-ment (SSUTA) and score high on parts of the score-card relating to adoption of that agreement (e.g., simplification; exemption certificate administration; current database of rates and boundaries; and cen-tral administration). Three of these states (Indiana, Michigan and Ohio) earn better than average scores on the exemption of business inputs. Finally, all four states score high on fair audit and refund proce-dures. Conversely, the bottom three states (Colorado, Louisiana, and New Mexico) perform poorly across virtually all Scorecard categories. None of the three states are members of SSUTA. All three of these low-performing states receive worse than average scores on the exemption of business inputs. Final-ly, two of the three states (Colorado and Louisiana) earn poor grades on central sales tax administration.

INTRODUCTION TO COSTThis Scorecard is COST’s first scorecard to objective-ly analyze the states’ state and local administration of their sales taxes. COST’s membership is composed of approximately 550 companies engaged in inter-state and international business that conduct busi-ness in every state. Virtually all COST members are either sellers collecting sales tax on behalf of the states, and/or are purchasers accruing sales tax due. COST members file sales tax returns in every state and the District of Columbia. COST has long sup-ported the states’ efforts via the Streamlined Sales and Use Tax Agreement (SSUTA)7 and federal legis-lative initiatives to improve the states’ administra-tion of their sales taxes.8 While the administrative

7 More information on the SSUTA is available at: http://www.stream-

linedsalestax.org/. Importantly, the information the SSUTA states

provide in their disclosed practices on their SSUTA taxability matrix

was very helpful to evaluate those states administrative practices.

8 The COST Board has adopted a policy statement on how Congress

should provide certain states with remote seller collection authority,

“Simplification of the Sales, Use, or Similar Transactional Tax System,”

is available at: http://cost.org/globalassets/cost/state-tax-resources-

pdf-pages/cost-policy-positions/simplification-of-the-sales-and-use-

and-similar-transaction-tax-system-2-26-13-adopted-2.pdf.

States’ Overall Scorecard Grades

Top-Ranked Sales Tax Administration States:• Indiana • Michigan• Ohio• Wisconsin

Bottom-Ranked Sales Tax Administration States• Colorado• Louisiana• New Mexico

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

States’OverallScorecardGradesN/A 0-9 10-13 14-17 18-22 22+

1

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

States’OverallScorecardGradesN/A 0-9 10-13 14-17 18-22 22+

1

3

rules which the SSUTA requires its member states to follow have helped simplify and make the sales tax laws more uniform among its members and are included as part of this evaluation, in total, the SSUTA items only cover about one-quarter of the categories in the Scorecard.9

The issuance of scorecards is only one of the meth-ods COST uses to improve overall state and local tax administration. COST also actively provides ed-ucation via schools, regional meetings, workshops, and national conferences, provides comments and testimony on state and local tax legislation, and files amicus curiae briefs addressing important state and local tax litigation pending before the courts.

GRADING THE SALES TAX STATESThis Scorecard evaluates multiple criteria in six primary subject areas: 1) exemptions for business inputs; 2) fair sales tax administrative practices; 3) centralized administration of state and local sales taxes; 4) sales tax simplification and transparency; 5) fair tax payment and credits administration; and 6) reasonable audit and refund procedures. As indicat-ed above, we also include an “Other Issues” category to address additional sales tax administration issues. Each of these six categories contain several subcate-gories. A more detailed explanation of each category and subcategory follows the Summary Grading Chart.

Objectivity of the Scorecard

The primary goal of the Scorecard is to provide a nationwide perspective for state tax policymakers (legislators and executive branch officials) on the best state sales tax administrative practices, and to provide a comparative measure of the fairness and efficiency of their current administrative practices to that of other sales tax states. It is our hope that this Scorecard will drive changes to ensure that sales taxes are administered more effectively, fairly, and without undue administrative burdens. For virtually all of the items evaluated in the Scorecard, there are some (or many) states that have adopted the identi-fied “best practice.” While most of the Scorecard is

9 Additionally, for the SSUTA states, select information provided in the

disclosed practices on their taxability matrices was used to evaluate

those states’ administrative practices. Available at: http://www.

streamlinedsalestax.org/otm/.

based on a state’s sales tax laws, some subcategories, such as a revenue agency’s effort to impose a tax on digital goods or access to prewritten software, address issues a state revenue agency creates when it attempts to impose a tax on products or services without clear legislative support. Thus, certain is-sues covered by this Scorecard can be addressed through legislative action, while other issues can be addressed through administrative action of a state’s revenue agency.

Scoring System

This Scorecard grades each state based on an ac-cumulated point total which is then converted for each category into a letter grade. For each category, we award only a whole letter grade, while the final grade for a state can have a + or – added on. Points for each subcategory are based on COST’s determination of the relative importance of each issue to a fair and efficient sales tax system.

Below is a brief explanation of categories and sub-categories reviewed by COST, along with the points structure for each category and the resulting grade for each category. As a general matter across all cat-egories, a greater accumulated point total corre-sponds to a lower letter grade.

Exemption for Business Inputs (total of 8 points)

Excessive taxation of business inputs violates the principle that consumption taxes should be im-posed only on end user consumption, and not on intermediate business inputs. The following subcat-egories were used to evaluate a state’s taxation of business inputs:

Percentage of Tax Derived from Business- to-Business Transactions (“B2B”): (two points) A state with a business share of total sales tax of more than 35 percent is assessed one point. A state

It is our hope that this Scorecard

will drive changes to ensure that

sales taxes are administered more

effectively, fairly, and without

undue administrative burdens.

4

with a business share of total sales tax of more than 45 percent is assessed two points.10

Manufacturing Equipment Exemption: (two points) A state with a true integrated plant ex-emption is not assessed any points. A state with an exemption for equipment primarily or directly used in manufacturing is assessed one point. A state with a partial tax exemption, limited exemption (e.g., only new equipment), or no exemption is as-sessed two points.

Manufacturing Inputs/Materials Exemption: (one point) A state that exempts almost all materi-als and supplies used in the manufacturing process is not assessed any points. A state with a limitation on the inputs/material exemption (e.g., must be-come part of the manufactured product) is assessed one point.

Service Provider Taxation on Inputs & Outputs: (three points) A state that taxes both the equipment used by wired and/or wireless service providers and which subjects those services to tax is assessed one point. A state that taxes both the equipment used by cable companies and subjects the service to tax is assessed one point. Lastly, a state that subjects the equipment used by gas and/or electric service pro-viders and also subjects those services to tax is as-sessed one point.

Category Grading: 0-1 points A, 2 points B, 3-4 points C, 5-6 points D, and 7-8 points F

10 Percentages are based on revised 2016/2017 EY/STRI/COST Study

on the taxation of business inputs, more detailed report forthcom-

ing in 2018. See also “What’s Wrong with Taxing Business Services?”

issued April 2013, available at: http://cost.org/globalassets/cost/state-

tax-resources-pdf-pages/cost-studies-articles-reports/sales-taxation-of-

services-and-business-inputs-study.pdf.

Fair Sales Tax Administration (total of 5 points)

Sellers are agents that act on behalf of the states to collect the tax from purchasers and should be com-pensated for collecting the tax. Additionally, sellers should not have excessive burdens imposed on them when purchasers claim they are exempt from the tax. Finally, businesses that purchase products and do not know at the time of sale whether those products will be used in a taxable or exempt manner should be able to obtain direct pay permits from the state to self-accrue the tax. The following subcatego-ries are used to evaluate the fairness of a state’s sales tax administration.

Exemption/Resale Certificate: (two points) A state that does not impose a good faith requirement upon a seller when accepting a certificate (absent fraud) up to 90 days from the date of sale, allows at least 120 days on audit to perfect a certificate, allows for the full use of the MTC or SSUTA certificate, and does not require sellers to capture/verify exemption account numbers is not assessed any points. Any state that fails one of the above criteria is assessed one point for each issue, with a maximum of two points.

Seller Compensation: (two points) A state with no seller compensation or de minimis compensa-tion (e.g., less than $1,000 per month or $12,000 per year) is assessed two points. A state with no local taxes that provides at least 0.5% seller compensation, or a state that has local tax jurisdictions with at least 0.75% seller compensation is assessed no points. A state between those two thresholds is assessed one point.

Broad Direct Pay Permit: (one point) A state that does not have a broad direct pay permit issuance (e.g., not limited to specific industries) and/or has a high threshold (e.g., over $1 million per year) for use of such a permit is assessed one point.

Category Grading: 0-1 points A, 2 points B, 3 points C, 4 points D, and 5 points F

Excessive taxation of business inputs

violates the principle that consumption

taxes should be imposed only on

end user consumption, and not on

intermediate business inputs.

… sellers should not have

excessive burdens imposed on

them when purchasers claim they

are exempt from the tax.

5

Centralized Sales Tax Administration (total of 5 points)

Over two-thirds of the states allow local jurisdic-tions to impose a sales tax. If such local taxes are imposed, they should be reasonable and centrally administered.

Excessive Local Jurisdictions: (one point) A state with over 50 local tax jurisdictions that, based on the 2010 U.S. Census numbers has an average popu-lation-to-jurisdiction ratio of less than 20,000 people, is assessed one point.11

Central Administration: (three points) A state is assessed one point if some or all local jurisdictions administer their sales tax. A state is also assessed one point if the local tax base differs from the state tax base. Lastly, a state is assessed one point if local ju-risdictions can exercise other autonomy in their ad-ministration of the tax (e.g., separate appeals).

Current & Historical Rate/Jurisdiction Data-base: (one point) A state with no local jurisdictions and no tax rate changes in the past five years is as-sessed no points. A state with tax rate changes in the past five years and/or has local jurisdictions that does not have a current and historical rate and juris-dictional database is assessed one point; otherwise, no points.


Sales Tax Simplification and Transparency (total of 5 points)

The complexity of sales and use tax administration in the U.S. – with over 10,000 state and local tax-ing jurisdictions and an expanding internet-based economy – places a premium on efforts such as the Streamlined Sales Tax Project (SSUTA) to make sales tax administration simpler and more uniform while still preserving autonomy to tax (or not tax) certain defined products. It is certainly the prerogative of states to tax the new digital economy, but if they choose to do so it should be through clear legisla-tive authority and not by administrative fiat. Finally, sellers and purchasers should also be able to rely on

11 The number of local jurisdiction data was obtained from multiple

sales tax software providers. The totals were derived from the first

half of 2017.

written documentation provided by a state’s reve-nue agency.

SSUTA State: (two points) A full member SSUTA state in compliance with the SSUTA is assessed no points. An SSUTA state not in full compliance is as-sessed one point. All other states are assessed two points. Note, a state in full compliance with the SSU-TA also benefits in other areas of this Scorecard (e.g., exemption certificate administration, current data-base, and aspects of central administration).

Digital Goods/Merely Accessing Software Transparency: (two points) A state revenue agency that is asserting digital goods/products are subject to tax without clear legislative support is assessed one point. Additionally, a state that is asserting that mere electronic access to prewritten software is subject to tax without clear legislative support is assessed one point.

Liability Relief: (one point) A state that does not provide broad liability relief for sellers and purchas-ers relying on written authoritative guidance is as-sessed one point.


Reasonable Tax Payment and Tax Credit Administration (total of 7 points)

The sales tax states should implement reasonable payment procedures and provide full credit for taxes first imposed and legally paid to another state.

The complexity of sales and use tax

administration in the U.S. – with

over 10,000 state and local taxing

jurisdictions and an expanding

internet-based economy – places

a premium on efforts such as the

Streamlined Sales Tax Project (SSUTA)

to make sales tax administration

simpler and more uniform …

6

Advance Payments: (two points) A state that re-quires no advance payments before the sales tax return due date is assessed no points. A state that has only one advance payment before the sales tax return date is assessed one point, including states that only require the advance payment once a year. A state that requires more than one advance payment per month is assessed two points.

Credit for Sales Tax Paid to Other States: (two points) A state that limits its credit paid to another jurisdiction to tax imposed under its use tax (i.e., no credit if the state revenue agency asserts its sales tax is being imposed) is assessed one point. In addition, a state that limits how it applies the credit (e.g., cred-it for state tax only or credit limited to state-to-state and local-to-local taxes) is assessed one point.

Periodic Lease Treatment: (two points) A state that accelerates certain types of periodic lease pay-ments (e.g., motor vehicles) and/or continues to tax certain types of periodic leases when the prod-uct purchased for the entire lease payment is not located in that state (e.g., continued use of origin- based sourcing) is assessed one point. A state that does not give full credit to states using such a period-ic lease payment structure is also assessed one point.

Bad Debt Application to Private-Label Credit Cards: (one point) A state with a bad debt provision that does not also apply to private-label credit cards is assessed one point.

Category Grading: 0-1 points A, 2 points B, 3-4 points C, 5 points D, and 6-7 points F

Fair Audit and Refund Procedures (total of 4 points)

The state should have a written mechanism to pro-vide purchasers the ability to claim a refund with-out having to go through a seller. Additionally, the state revenue agency, and not private and/or contin-gent fee auditors/litigants, should be auditing and/or asserting sellers have under or over collected tax. These responsibilities should not be undermined by allowing non-revenue agency actors to assert actions through false claims act or class action lawsuits.

Written Process for Purchaser to Claim Refund Directly from State: (one point) A state that does not have a written process (policy and/or law) al-

lowing purchasers to claim a refund directly from the state revenue agency is assessed one point.

No False Claims Act or Class Action Suits: (two points) A state that allows false claims acts (e.g., qui tam actions) to apply to state and local sales taxes is assessed one point, as is a state that allows class action suits to apply to such taxes.

No Private or Contingent Fee Auditing: (one point) A state that currently uses private and/or con-tingent fee auditors is assessed one point.

Category Grading: 0 points A, 1 point B, 2 points C, 3 points D, and 4 points F

Total Points – Summary of Grading

The ultimate grade a state receives is based on the total number of points awarded for all subcategory items and “other issues.” It is not based on grades re-ceived for each individual category. The following is the grading by overall points:

A = 0 to 5 points;

A- = 6 to 9 points;

B+ = 10 points;

B = 11 to 12 points;

B- = 13 points;

C+ = 14 points;

C = 15 to 16 points;

C- = 17 points;

D+ = 18 to 20 points;

D = 21 to 22 points; and

F = over 22 points.

… the state revenue agency,

and not private and/or contingent

fee auditors/litigants, should be

auditing and/or asserting sellers

have under or over collected tax.

7

Summary Grading Chart

StateExempt

B2B8 pts

FairAdmin5 pts

CentralAdmin5 pts

Simple & Trans.

5 pts

ReasonablePayment

7 pts

FairAudits4 pts

Other Issues

Total Points

Grade

Alabama 5 5 4 4 3 1 0 22 D

Alaska n/a n/a n/a n/a n/a n/a n/a n/a n/a

Arizona 3 4 2 4 5 1 0 19 D+

Arkansas 6 1 2 0 4 0 0 13 B-

California 6 5 1 2 4 0 0 18 D+

Colorado 7 3 5 4 3 1 1 24 F

Connecticut 7 4 0 5 2 1 0 19 D+

Delaware n/a n/a n/a n/a n/a n/a n/a n/a n/a

D.C. 4 5 1 4 3 0 1 18 D+

Florida 7 4 1 3 1 2 0 18 D+

Georgia 3 4 1 1 3 1 1 14 C+

Hawaii 7 5 1 3 1 2 1 20 D+

Idaho 2 4 2 3 1 2 0 14 C+

Illinois 4 2 4 3 6 2 1 22 D

Indiana 2 1 0 0 3 0 1 7 A-

Iowa 5 2 2 1 6 0 0 16 C

Kansas 4 3 3 0 3 0 0 13 B-

Kentucky 7 3 0 0 2 1 0 13 B-

Louisiana 6 4 5 4 2 2 1 24 F

Maine 3 5 0 3 3 1 0 15 C

Maryland 5 5 0 3 3 0 0 16 C

Massachusetts 5 4 0 3 3 0 1 16 C

Michigan 3 1 0 0 2 1 0 7 A-

Minnesota 3 3 1 1 4 1 0 13 B-

Mississippi 7 5 1 3 4 2 0 22 D

Missouri 2 2 2 3 4 1 0 14 C+

Montana n/a n/a n/a n/a n/a n/a n/a n/a n/a

Nebraska 6 2 2 1 2 0 0 13 B-

Nevada 5 2 1 0 3 2 0 13 B-

New Hampshire n/a n/a n/a n/a n/a n/a n/a n/a n/a

New Jersey 3 2 0 1 6 0 0 12 B

New Mexico 8 5 2 4 3 1 0 23 F

New York 3 4 2 4 5 2 0 20 D+

North Carolina 3 3 0 0 4 2 0 12 B

North Dakota 6 2 2 0 3 1 1 15 C

Ohio 3 0 0 0 4 0 1 8 A-

Oklahoma 3 2 2 0 4 1 0 12 B

Oregon n/a n/a n/a n/a n/a n/a n/a n/a n/a

Pennsylvania 5 4 1 3 3 0 1 17 C-

Rhode Island 5 3 0 0 3 0 0 11 B

South Carolina 4 4 3 5 2 0 0 18 D+

South Dakota 7 3 1 0 3 1 0 15 C

Tennessee 4 4 2 2 2 1 0 15 C

Texas 6 3 3 4 1 2 0 19 D+

Utah 6 1 1 0 2 1 0 11 B

Vermont 6 2 2 1 3 0 0 14 C+

Virginia 4 5 2 2 3 0 0 16 C

Washington 5 3 1 1 3 1 0 14 C+

West Virginia 2 3 1 0 3 1 0 10 B+

Wisconsin 5 1 1 0 1 0 0 8 A-

Wyoming 6 3 0 0 3 1 0 13 B-

8

DETAILS OF SALES TAX ADMINISTRATION CATEGORIES

12 See footnote 10. Of the $363 billion paid in sales taxes in FY 2016,

$153.9 billion was collected from business.

There are many metrics that can be used to evaluate the states’ sales tax administration systems. In develop-ing this initial scorecard, COST has focused on six cat-egories that reflect a broad spectrum of fair, efficient and uniform sales tax administration rules. While these categories overlap in part with the rules adopted by the member states of the Streamlined Sales and Use Tax Agreement, they encompass a number of addition-al criteria that define optimal sales tax administration.

Exemption for Business Inputs

Exemption for Business Inputs – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

ExemptionforBusinessInputs– States’Grades

N/A 0-1pts 2pts 3-4pts 5-6pts 7-8pts

2

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

ExemptionforBusinessInputs– States’Grades

N/A 0-1pts 2pts 3-4pts 5-6pts 7-8pts

2

While economists generally agree that the ideal sales tax system would tax final personal consumption and not tax any business-to-business transactions, U.S. state and local sales tax systems completely violate this prin-ciple. States collect, on average, 42% of their total sales tax revenue from business inputs.12 Not a single state has a business share of sales tax lower than Indiana at 31.8%. New Mexico has the highest business input share of sales taxes at 60.4%. The ramifications from taxing business inputs are significant, including inefficient tax “pyramiding,” a lack of transparency, higher consumer prices, and/or reduced economic activity (which can result in lower employment and/or wages).

State and Local Sales Taxes Imposed on Business Inputs

Business Inputs Share of Total Sales Tax Collected


47%

32%

37%

32%

46%

39%37%

33%60%

42%

58%

48%

52%

41%

44%

58%

46%

42%

47%

39%

37% 32%

37%

41%

36% 35%

43%

40%42%

40%

41%

37%

44%

42%

36% DC42%

MD42%

NJ43%

42%

CT39%

RI36%

MA48%

VT51%

35%

40%

44%

HI36% 2

25%- 35% 36%- 45% 46%+


StatesWithNoSalesTax

N/AN/A

N/A

N/A


47%

32%

37%

32%

46%

39%37%

33%60%

42%

58%

48%

52%

41%

44%

58%

46%

42%

47%

39%

37% 32%

37%

41%

36% 35%

43%

40%42%

40%

41%

37%

44%

42%

36% DC42%

MD42%

NJ43%

42%

CT39%

RI36%

MA48%

VT51%

35%

40%

44%

HI36% 2

25%- 35% 36%- 45% 46%+



N/AN/A

N/A

N/A


47%

32%

37%

32%

46%

39%37%

33%60%

42%

58%

48%

52%

41%

44%

58%

46%

42%

47%

39%

37% 32%

37%

41%

36% 35%

43%

40%42%

40%

41%

37%

44%

42%

36% DC42%

MD42%

NJ43%

42%

CT39%

RI36%

MA48%

VT51%

35%

40%

44%

HI36% 2

25%- 35% 36%- 45% 46%+



N/AN/A

N/A

N/A

One key item for manufacturers is how a state impos-es its sales tax on manufacturing operations occurring in a state. Manufactured products are ultimately resold, so the equipment, supplies and materials consumed in a manufacturing operation should all be exempt from a state’s sales tax.13 Georgia does this well, as its exemp-tion covers the entire facility under an “integrated plant” theory. Conversely, states like New Mexico, which offers no equipment exemption, and Kentucky, which limits the inputs exemption to raw materials that become an ingredient or component part of the manufactured prod-uct, score poorly in this category. Utah recently passed legislation (2018 UT S.233) which broadens its manufac-turing exemption; however, it will not be effective until the state collects more revenue from remote sellers.

13 Most states require any manufactured products not sold and used by

the manufacturer in providing services to others to self-remit the tax on

those products (which should also be exempt if the service is taxable).

Breadth of States’ Manufacturing Equipment Exemptions


32% DCMDNJ

CTRIMAVT

HI

NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption

3

States With NoSalesTaxWA

OR

CANV

AZ

AK

ID

MT

WY

UT

ND

SD

NE

CO

NM

KS

OK

MN

IA

MO

AR

TX

WIMI

IL IN

KY

TN

MS

LA

AL GA

FL

SC

NC

VAWV

OHPA

NY

VTNH

ME

MACT

NJMD


32% DCMDNJ

CTRIMAVT

HI


3


OR

CANV

AZ

AK

ID

MT

WY

UT

ND

SD

NE

CO

NM

KS

OK

MN

IA

MO

AR

TX

WIMI

IL IN

KY

TN

MS

LA

AL GA

FL

SC

NC

VAWV

OHPA

NY

VTNH

ME

MACT

NJMD


32% DCMDNJ

CTRIMAVT

HI


3


OR

CANV

AZ

AK

ID

MT

WY

UT

ND

SD

NE

CO

NM

KS

OK

MN

IA

MO

AR

TX

WIMI

IL IN

KY

TN

MS

LA

AL GA

FL

SC

NC

VAWV

OHPA

NY

VTNH

ME

MACT

NJMD


32% DCMDNJ

CTRIMAVT

HI


3


OR

CANV

AZ

AK

ID

MT

WY

UT

ND

SD

NE

CO

NM

KS

OK

MN

IA

MO

AR

TX

WIMI

IL IN

KY

TN

MS

LA

AL GA

FL

SC

NC

VAWV

OHPA

NY

VTNH

ME

MACT

NJMD


32% DCMDNJ

CTRIMAVT

HI


3


OR

CANV

AZ

AK

ID

MT

WY

UT

ND

SD

NE

CO

NM

KS

OK

MN

IA

MO

AR

TX

WIMI

IL IN

KY

TN

MS

LA

AL GA

FL

SC

NC

VAWV

OHPA

NY

VTNH

ME

MACT

NJMD

States collect, on average,

42% of their total sales tax

revenue from business inputs.

9

Additionally, the Scorecard looks at several service in-dustries and evaluates whether a state is double tax-ing both the production end of providing a service (i.e., the equipment) and the consumption end (i.e. the sale to end-user consumers). Idaho scores well in this category, as its service industries are taxed at the production end, but services are not taxed to the consumer. On the other hand, states like Texas and Florida double tax their service industries and thus score poorly. Manufacturing and the double taxation of service providers is by no means an exhaustive list of business-to-business transaction tax concerns.

Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas


NoDouble Tax

1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed

4

StatesWith NoSalesTax

32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT

Inefficiencies created when a state taxes certain products or services that are almost exclusively business-to-business transactions (e.g., employment services, data processing services, etc.) are not ad-dressed in this initial Scorecard; however, they may be addressed in future versions.

Fair Sales Tax Administration

Fair Tax Administration – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

FairTaxAdministration– States’GradesN/A 0-1pts 2pts 3pts 4pts 5pts

6

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

FairTaxAdministration– States’GradesN/A 0-1pts 2pts 3pts 4pts 5pts

6

With 45 individual states (and the District of Columbia) imposing their own versions of a sales tax, both sellers and purchasers can be burdened with numerous un-fair administrative practices. One way to improve the administration of a state’s sales tax is not to burden sellers with the task of policing whether purchased items are not subject to the state’s tax under a pur-chaser exemption or exclusion. Absent a seller com-mitting fraud, states affording exemptions to purchas-ers should audit the purchasers to determine whether their purchases are exempt from a state’s sales tax, and not impose a “good faith” requirement on sellers.

Good Faith Requirement


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

GoodFaithRequirementImposed NoGoodFaithRequirement

7



AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

GoodFaithRequirementImposed NoGoodFaithRequirement

7


A seller should only be required to obtain and re-tain completed exemption/resale certificates. States should also allow sellers to use either the MTC uni-form exemption certificate14 or the SSUTA exemp-tion certificate.15 Lastly, when auditing a seller and

14 See http://www.mtc.gov/Resources/Uniform-Sales-Use-Tax-Exemp-

tion-Certificate.

15 See http://www.streamlinedsalestax.org/uploads/downloads/Forms/

F0003%20Fill%20in%20Exemption%20Certificate%20Form_9_18_09.pdf.

Absent a seller committing fraud,

states affording exemptions to

purchasers should audit the

purchasers to determine whether

their purchases are exempt from a

state’s sales tax, and not impose a

“good faith” requirement on sellers.

10

determining an exemption certificate is not com-plete, a state should allow sellers at least 120 days to capture and obtain information from its purchasers to demonstrate the sales were exempt from tax. Ohio does well in this category because it doesn’t require a “good faith” standard when accepting exemption certificates, allows sellers 120 days to obtain valid certificates on audit, allows use of MTC and SSUTA certification, and does not require sellers to verify exemption account numbers. Maryland, on the other hand, scores poorly because it requires good faith, allows sellers only 60 days to obtain valid certificates on audit, allows only a limited use of MTC and SSU-TA certificates, and requires sellers to capture and verify account numbers. Additionally, unfortunately, D.C. has back-tracked and no longer allows sellers to accept the MTC certificate from purchasers.

Exemption Certificates


AK

HI

ME

RI

VTNHMANY

CT

PANJ

DC

DEWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CAVA

MD

4

MTC SSUTA MTCAndSSUTA NeitherMTCNorSSUTA


AK

HI

ME

RI

VTNHMANY

CT

PANJ

DC

DEWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CAVA

MD

4



AK

HI

ME

RI

VTNHMANY

CT

PANJ

DC

DEWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CAVA

MD

4



AK

HI

ME

RI

VTNHMANY

CT

PANJ

DC

DEWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CAVA

MD

4


States should also provide compensation to ven-dors for the collection and remittance of sales taxes. For purposes of this Scorecard, COST uses a 0.5% compensation threshold for single rate states and a 0.75% threshold for states with local jurisdictions. These thresholds are primarily based on a former Streamlined Sales and Use Tax Agreement provision that generally calls for states to provide compensa-tion at that level.16 This level of compensation is still far below the level identified in a study compiled by PricewaterhouseCoopers in 2006 for the Stream-lined Sales Tax Governing Board that noted sellers under $1 million had average compliance costs of 13.47%, sellers from $1 million to $10 million aver-aged compliance costs of 5.2% and sellers over $10 million incurred compliance costs of 2.17%, with a

16 See former Section 608 of the Streamlined Sales and Use Tax Agreement.

weighted average for all sellers of 3.09%.17 As forced collection agents for the state, it is inequitable for a state to not reimburse sellers for more of their costs to collect and remit state and local sales taxes. States such as Massachusetts and Minnesota score poorly in this category because they offer no vendor com-pensation. Conversely, Colorado scores well in this category because it offers uncapped vendor com-pensation at 3.33% of the state tax due.

Vendor Compensation

Vendor Compensation

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

UncappedVendorComp. LimitedOrCappedVendorComp. NoVendorComp.

9


Lastly, states should provide a broad direct pay provi-sion that allows business purchasers to acquire prop-erty or services without paying the sales tax to a seller when the taxability of a product is unknown by the purchaser because it could be used in a taxable or non-taxable manner. Such a provision is economical-ly necessary for many businesses and it often makes audits of such purchasers easier for the state. While states may choose a reasonable threshold for purchas-es before granting a direct pay permit, blanket exclu-sions preventing certain industries from obtaining such a permit or an excessive threshold reflects poor sales tax administration. South Carolina does well in

17 The PwC 2006 “Retail Sales Tax Compliance Costs” study is available

at: http://www.streamlinedsalestax.org/uploads/downloads/JCCS_

Part_I__Final_Report_Vol_I_20060407.pdf.

As forced collection agents for the

state, it is inequitable for a state to

not reimburse sellers for more of

their costs to collect and remit

state and local sales taxes.

11

this category because it has a broad-based direct pay provision, while the District of Columbia does poorly because it does not allow direct pay permits.

Direct Pay

Direct Pay

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

BroadDirectPay LimitedDirectPay NoDirectPay

10


Centralized Sales Tax Administration

One of the biggest burdens on sellers is the wide diver-gence among states in tax bases, taxable product defi-nitions, and the rules and administrative procedures for collection and remittance. This task is compounded by those states that allow their local taxing jurisdictions to use a different tax base, separately administer the tax, and/or have a multitude of local jurisdictions.

Centralized Administration – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

CentralizedAdministration– States’Grades

N/A 0-1pts 2pts 3pts 4pts 5pts

11AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

CentralizedAdministration– States’Grades


11

Because zip codes rarely follow local sales tax juris-dictional boundaries, all states with local sales tax jurisdictions inherently make compliance more diffi-cult for sellers and purchasers.

States with Local Sales Tax Jurisdictions

12

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

States with Local Sales Tax JurisdictionsStates With Centralized Administration Of Local Sales Taxes

States With No Local Sales Taxes

States With Local Administration Of Sales Tax

States With No Sales Tax

Further, an excessive number of jurisdictions relative to a state’s population creates more chances for er-rors with diminishing benefits for a state’s local gov-ernments. Any state with over 50 local jurisdictions and a population ratio averaging less than 20,000 people per jurisdiction on average was used as the threshold for determining where any benefit of lo-cal taxes is outweighed by the overall cost imposed on taxpayers. Oklahoma fares poorly in this category because it has 629 local sales tax jurisdictions with a population ratio of 5,946. On the other hand, Con-necticut and Rhode Island have no local sales tax ju-risdictions at all. It is also critical for efficient admin-istration that the state administer all local sales taxes, including all audits, appeals, payments, refunds, ex-emptions, etc. The tax base at the local jurisdiction level also should not differ from the state’s tax base.

Number of Taxing Jurisdictions

… all states with local sales tax

jurisdictions inherently make

compliance more difficult for

sellers and purchasers.


5

1TaxingJurisdiction 2-500TaxingJurisdictions 500+TaxingJurisdictions50+JurisdictionsWithaPopulationRatioofUnder20,000 StatesWithNoSalesTax

AK

32% DCMDNJ

CTRIMAVT

HI

WA

OR

CA

NV

ID

MT

WY

UTCO

AZ NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WIMI

IL IN

KY

TN

MS AL GASC

NC

VAWV

OHPA

NY

VTNH

ME

CTMA

MDNJ


5


AK

32% DCMDNJ

CTRIMAVT

HI

WA

OR

CA

NV

ID

MT

WY

UTCO

AZ NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WIMI

IL IN

KY

TN

MS AL GASC

NC

VAWV

OHPA

NY

VTNH

ME

CTMA

MDNJ

6

!"#


5


AK

32% DCMDNJ

CTRIMAVT

HI

WA

OR

CA

NV

ID

MT

WY

UTCO

AZ NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WIMI

IL IN

KY

TN

MS AL GASC

NC

VAWV

OHPA

NY

VTNH

ME

CTMA

MDNJ

12

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

States with Local Sales Tax JurisdictionsStates With Centralized Administration Of Local Sales Taxes

States With No Local Sales Taxes

States With Local Administration Of Sales Tax

States With No Sales Tax

WA

ID

CA

NV

AZ

UT

NV

CO

NDMN

WY

IL

MS

TN

AL GA

SC

NC

VAWV

PA

NY

VT

OH

FL

IA

MO

AK

LA

SD

NE

KS

OK

TX

NM

OR

MT

NJMD

NH

DE

MACT RIMI

IN

KY

ME

12

Lastly, any state that enacted a tax change in the past five years at the state and/or local level should pro-vide notice of the different tax rates, including the effective date of the rate change(s), on their revenue agency’s website. And, if the state has local jurisdic-tions, a current tax rate and boundary database is needed.

Website with Boundary Database and Rates

14

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database

Website Has Current & Historical Rates And Boundary Database

Website Has Current Rates And Boundary Database, But No Historical Rates

States With No Sales TaxWebsite Only Has Current Rates

14

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC





14

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC





14

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC





14

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC





A state should also provide full liability relief to sellers relying on a state’s rate and boundary da-tabase. Tennessee does not do well in this cate-gory because while its website has current tax rates, it does not provide historical tax rates or a boundary database. Other states, like Georgia and North Carolina, populate their websites with current rates, historical rates, and a boundary database.

Simplification and Transparency

Simplification and Transparency – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

SimplificationandTransparency– States’Grades


15

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

SimplificationandTransparency– States’Grades


15

Presently, twenty-four states are active members of the SSUTA, a process that began over seventeen years ago. These states have committed themselves to working with other states and the business com-munity to ease the burdens imposed on sellers to col-lect the states’ sales taxes. The Agreement is a living document—it has been amended at practically every meeting of the Governing Board to address issues raised by the states and the business community.

Unfortunately, the largest sales tax states, including California, Texas, New York, Illinois, and Florida, have not joined the SSUTA. Indeed, while more than one-half of all states with sales taxes are members of SSUTA, by population, nearly two-thirds of the U.S. population live in states that are not members of SSUTA. Thus, businesses in these states do not bene-fit from the extensive uniformity and simplification contained in the 100+ pages of SSUTA language.

Streamlined Sales Tax States

AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

ILOHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CA

DC


16

FullMember AssociateMember Non-MemberNon-SalesTaxMember

AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

ILOHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CA

DC


16

FullMember AssociateMember Non-MemberNon-SalesTaxMember

Besides a commitment to work together on unifor-mity issues, transparent administration of the states’ sales taxes is vital to the fair administration of the tax. This means that taxes should be administered based on clear legislative authority and not guidance issued by a revenue agency expressing its position on the law. E-commerce raises unique tax issues and some states’ tax agencies, unfortunately, have attempted to fill in the legal gaps without having full legislative sup-port for taxing items such as digital goods or merely

… transparent administration of the

states’ sales taxes is vital to the fair

administration of the tax.

13

electronically accessing pre-written software. While COST does not take a position in support or opposi-tion to a state legislature’s decisions on the breadth of its tax base (other than opposing the taxation of business inputs), the determination of taxable goods and services must be done with clear legislative au-thority. Failure to do so adds significant uncertainty, makes the state a less attractive place to do business, and unnecessarily subjects sellers to risk for collect-ing (or not collecting) tax. For example, South Dakota does well in this category because although it impos-es a tax on both digital products and on mere access to pre-written software, it does so via clear statuto-ry authority. Conversely, states like Arizona, which imposes tax via DOR ruling, do not do well in this category. Some states with issues in this area, such as Arizona, have legislation pending to fix this issue. Indiana recently passed legislation in March 2018 to fix this issue. Hopefully, these states and other states lacking clear legislative guidance in this area will leg-islatively fix this issue in the near future.

Taxation of Digital Goods


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

NoTaxImposed TaxImposedWithoutStatutoryAuthority

17

TaxImposedByStatutoryAuthority


WY

ID

WA

UT


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


17



WY

ID

WA

UT


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


17



WY

ID

WA

UT

Taxation of a Person Merely Accessing Pre-Written Software


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


6




AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


6




AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


6



Another important transparency criterion is assur-ing that both sellers and customers can rely on writ-ten guidance provided by a state tax agency. This relief should be broad and not confined to limited types of written guidance. Several states do poorly in this category because they offer very limited liability relief to sellers or purchasers relying on DOR guid-ance. Meanwhile, California scores well because it offers liability relief to sellers and purchasers relying on CDTFA guidance.

Tax Liability Relief for Sellers Relying on Guidance


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

LiabilityRelief LimitedorNoLiabilityRelief

6

Stateswithnosalestax


AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

LiabilityRelief LimitedorNoLiabilityRelief

6

Stateswithnosalestax

While COST does not take a position

in support or opposition to a state

legislature’s decisions on the breadth

of its tax base (other than opposing

the taxation of business inputs),

the determination of taxable goods

and services must be done with

clear legislative authority.


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT


NoDouble Tax


4


32% DCMDNJ

CTRIMAVT

HI

WA

ORID

CA

NV

MT

WY

UT

AZ

CO

ND

SD

NE

KS

NM

TX

AK

MNWI

MI

IA

MO

OK AR

LA

TN

MS

IL IN OHPA

NY

VT

ME

NH

WVVA

NC

SC

GAAL

FL

MDNJ

MACT

14

Reasonable Tax Payment Administration

Reasonable Tax Payment Procedure – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PA NJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

ReasonableTaxPaymentProcedure– States’Grades

N/A 0-1pts 2pts 3-4pts 5pts 6-7pts

20

AK

HI

ME

RI

VT

NH

MANYCT

PA NJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

ReasonableTaxPaymentProcedure– States’Grades

N/A 0-1pts 2pts 3-4pts 5pts 6-7pts

20

The timing of a seller’s remittances is a key issue for fair tax payment administration. Some states require the tax to be paid in advance of the return, while other states require multiple advance payments. It is much more efficient for sellers to make just one payment per filing period when they file tax returns because it eliminates “guesstimates” and also allows the bulk of purchasers’ returns to be adjusted on the sellers’ tax returns for taxes the sellers refunded to purchasers.18 States like Washington and Indiana do not require advance payments and thus do well in this category. On the other hand, states like Michigan and New Jersey require sellers to make multiple ad-vance payments.

18 Even more troubling is recent lobbying for states to enact “real-time

remittance” by requiring credit card processors to remit the tax

on credit/debit transactions. The myriad of problems with that

approach is addressed in COST’s Policy Statement “Daily Sales Tax

Remittance” available at: http://cost.org/globalassets/cost/state-tax-

resources-pdf-pages/cost-policy-positions/daily-sales-tax-remittance-

policy-statement---draft-for-approval.pdf.

Advance Payments

Advance Payments

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

NoAdvancePayments 1AdvancePaymentPerMonthorYear

1

MoreThan1AdvancePaymentPerMonth


Advance Payments

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


1



Advance Payments

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD


1



Another growing problem is that some states are im-properly asserting they are imposing a “sales tax” and not a “use tax” on some transactions. While this usu-ally does not create an issue if the tax rates are the same, some states locate their credit for purchasers who paid tax on a product to another state in their “use tax” section of the law. Thus, if the state’s reve-nue agency asserts it is imposing its sales tax, there is no credit allowed in that situation. This Scorecard takes no position on the adequacy of reciprocity pro-visions; however, this issue may be evaluated in the future if it prevents purchasers from obtaining full credit for tax legally due and paid to another state.

Tax Credit Against Sales and Use Tax

AK

HI

ME

RI

VTNHMANY

CT

PA

NJ

MDDE

VAWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CA

DC

Tax Credit Against Sales and Use TaxCreditOnlyAgainstUseTax CreditAgainstBothSalesAndUseTaxes

22


Another issue is that some states limit credits to just the state’s sales tax if they have no local taxes, or they limit credit for taxes paid at the state level but not those at the local level. While this type of limita-tion itself is administratively unfair, it also raises con-stitutional issues regarding fair apportionment and

15

internal consistency under the Commerce Clause.19 Florida does well in this category because its credit is not limited to use tax and it gives full credit for other states’ state and local taxes. Conversely, Arizo-na does poorly because its credit is limited to use tax and it does not provide credit for other states’ local taxes.

Full Credit For Other States’ State & Local Sales and Use Taxes

AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Full Credit For Other States’ State & Local Sales and Use TaxesFullCreditNotAllowedAgainstLocalTaxes FullCreditAllowed

23

StateForStateAndLocalForLocal


AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC


23



AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC


23



AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC


23



Another concern is the different methods that states use to impose their sales taxes, particularly relating to the taxation of leases (and to high-price items such as motor vehicles). COST believes the best approach for the imposition of periodic lease payments is for the tax to be imposed on each payment based on where the leased property was primarily located when the periodic lease payment was made. For example, Arkansas has no accelerated lease payments. Unfortu-nately, several states, like Iowa and New York, impose their sales tax on the total periodic lease payments upfront or they continue to tax periodic leased prop-erty even though the property is no longer located in that state. Compounding the problem, several state tax agencies assert they will not (or legally cannot) provide credit for the sales tax paid to another state in that situation. Unfortunately, this problem exists for member states of the SSUTA and non-member states alike, and much more uniformity is needed.20

19 See Comptroller of the Treasury of Maryland v. Wynne, 135 S.Ct.

1787 (2015) and Matkovich v. CSX Transportation, 793 S.E.2d 888

(W. Va. 2016); cert. denied Steager v. CSX Transp., Inc., No. 16-1251

(2017).

20 Althought not addressed in this Scorecard, there are also issues with

states imposing their sales tax on motor vehicles that will be titled in

another state based on the lower of the taxing state’s tax rate or the

state where the vehicle will be titled.

… the best approach for the imposition

of periodic lease payments is for the

tax to be imposed on each payment

based on where the leased property

was primarily located when the

periodic lease payment was made.

Accelerated Lease Payments (ALPs)

AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN*

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

CO*UT

WY

MT

WA

ORID

NV

CA*DC

Accelerated Lease Payments (ALPs)NoALPsWithCredit

ALPsAndCont’dTaxOnLeasesWithCredit

28

NoALPs,NoCreditALPsAndCont’dTaxOnLeasesWithNoCredit

*CA,CO,TN:Continuestaxoncertainleasepaymentsusingoriginlocation

AK

HI

ME

RI

VTNHMANY

CT

PANJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN*

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

CO*UT

WY

MT

WA

ORID

NV

CA*DC

Accelerated Lease Payments (ALPs)NoALPsWithCredit

ALPsAndCont’dTaxOnLeasesWithCredit

28

NoALPs,NoCreditALPsAndCont’dTaxOnLeasesWithNoCredit

*CA,CO,TN:Continuestaxoncertainleasepaymentsusingoriginlocation

Finally, state treatment of bad debts is invariably dis-torted because sellers that issue private-label credit cards are generally denied a bad-debt deduction on such cards. The clear purpose of the bad debt deduc-tion is for sellers to recoup taxes paid to the state that subsequently are not recovered from consumers due to non-payment. Private-label credit cards dominate over retailer-issued credit cards based on advantages afforded to both retailers and financial institutions. Despite similarities between private-label credit cards and retailer-issued credit cards, the tax consequence of obtaining a bad-debt deduction often differ.21 Penn-sylvania scores well because its bad debt deduction provision applies to private-label credit cards. Maine scores poorly because its bad debt deduction does not apply to private-label credit cards.

21 See William F. Fox, “Sales Tax Policy Considerations for Private Label

Credit Card Defaults” (State Tax Research Institute; 2015) for more

detail. Available at: http://cost.org/globalassets/cost/state-tax-resourc-

es-pdf-pages/cost-studies-articles-reports/sales-tax-policy-consider-

ations-for-private-label-credit-card-defaults.pdf.

16

Bad Debt Deduction

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Bad Debt DeductionBadDebtDeductionDoesNotApplyToPrivate-labelCreditCards

BadDebtDeductionAppliestoPrivate-labelCreditCards

24

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Bad Debt DeductionBadDebtDeductionDoesNotApplyToPrivate-labelCreditCards

BadDebtDeductionAppliestoPrivate-labelCreditCards

24Allowing a bad-debt provision for private-label cards is a necessary because it ensures that the states’ sales tax bad-debt provisions are applied in a fair and neutral manner irrespective of the type of credit card used.

Fair Audit and Refund Procedures

Fair Refund/Audit Procedures – States’ Grades

AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

FairRefund/AuditProcedures– States’GradesN/A 0pts 1pt 2pts 3pts 4pts

7AK

HI

ME

RI

VT

NH

MANYCT

PANJ

DC

DEWV

NC

SC

GA

FL

ILOH

IN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

OR

ID

NV

CAVA

MD

N/A A B C D F

FairRefund/AuditProcedures– States’GradesN/A 0pts 1pt 2pts 3pts 4pts

7

Sellers and purchasers need fair refund procedures to level the playing field between overpayments and underpayments. A state should provide a written process (e.g., a law, regulation, and/or assignment provision) that allows a purchaser to obtain a refund directly from the state in situations where a seller is unwilling or unable to file a refund on behalf of a purchaser. For example, in Nebraska, purchasers can fill out a form to obtain refunds from the state without contacting the seller. Conversely, in Florida, there is no written process for purchasers to obtain refunds directly from the state. State revenue agen-

cies should also be the only entity authorized to audit taxpayers. False claims acts seeking addition-al tax due, or class action suits seeking refunds by third-party litigants are inappropriate. Illinois is a posterchild of what can go wrong when a state al-lows both false claims act lawsuits and class action lawsuits instituted by third-party relators.

False Claims Act

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MD DE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

FalseClaimsAct

26

FalseClaimsActAllowsTaxClaims FalseClaimsActDoesNotApplyToTaxesFalseClaimsActExcludesTaxes NoFalseClaimsAct StatesWithNoSalesTax

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MD DE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

FalseClaimsAct

26

FalseClaimsActAllowsTaxClaims FalseClaimsActDoesNotApplyToTaxesFalseClaimsActExcludesTaxes NoFalseClaimsAct StatesWithNoSalesTax

Class Action Suits

AK

HI

ME

RI

VTNHMANY

CT

PA NJMD DE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

ClassActionSuits

27

ClassActionSuitsAllowed NoKnownUseOfClassActionSuits ClassActionSuitsNotAllowedStatesWithNoSalesTax

*ClassactionsuitinNViscurrentlypending

AK

HI

ME

RI

VTNHMANY

CT

PA NJMD DE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

ClassActionSuits

27

ClassActionSuitsAllowed NoKnownUseOfClassActionSuits ClassActionSuitsNotAllowedStatesWithNoSalesTax

*ClassactionsuitinNViscurrentlypending

Illinois is a posterchild of what

can go wrong when a state allows

both false claims act lawsuits and

class action lawsuits instituted

by third-party relators.

17

Lastly, a state revenue agency should use its own auditors that are directly trained and controlled by the agency. Contingent fee auditing places too much incentive on maximizing the auditor’s fee to the detriment of determining the correct amount of tax owed. Similarly, private contract auditing suffers from inconsistencies and the lack of direct control by the revenue agency. While a state was not penal-ized for the absence of a law prohibiting the use of private and contingent fee auditors, such states are strongly encouraged to enact a law that clearly pro-hibits the use of these types of audits. Both North Carolina and Virginia have prohibited contingent fee and private-contract auditing.

Contingent Fee/Private Auditing

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Contingent Fee / Private AuditingAllowsContingent FeeAuditing

AllowsPrivateContractAuditing

7

DoesNotAllowContingentFeeAndPrivateContractAuditing

DoesNotAllowContingentFee,SomeLocalsUsePrivateContractAuditing

GA:HB811allowscontingent-feeauditing.Nocurrentprivate-contractauditing

MS:Recentlegislation(SB2973,2017)allowscontingentfeeauditing.

AK

HI

ME

RI

VTNHMANY

CT

PA NJ

MDDE

VAWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MNND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CADC

Contingent Fee / Private AuditingAllowsContingent FeeAuditing

AllowsPrivateContractAuditing

7

DoesNotAllowContingentFeeAndPrivateContractAuditing

DoesNotAllowContingentFee,SomeLocalsUsePrivateContractAuditing

GA:HB811allowscontingent-feeauditing.Nocurrentprivate-contractauditing

MS:Recentlegislation(SB2973,2017)allowscontingentfeeauditing.

Other Issues

Certain state tax administration issues do not fit in a specific category or are unique to one or just a few states. One such issue is the burdensome require-ment of including corporate officers’ social security numbers and/or home addresses on each tax return filed with the state. While this information is useful in situations where a company is insolvent, this is a rare instance and other sources of information are available to the tax agencies to obtain this informa-tion as needed. Another issue noted in several states (such as Georgia) is to administratively deny direct pay permit holders interest on overpayments of the tax. These issues are highlighted on the scorecard because they impact fair and efficient sales tax ad-ministration. Each issue is assigned one point.

SSN and Other IssuesSSN and Other Issues

AK

HI

ME

RI

VTNHMANY

CT

PANJ

DC

DEWV

NC

SC

GA

FL

IL OHIN

MIWI

KY

TN

ALMS

AR

LATX

OK

MOKS

IA

MN

ND

SD

NE

NMAZ

COUT

WY

MT

WA

ORID

NV

CAVA

MD

30

SSNAnd/Or HomeAddress OtherIssues

18

SCORECARD QUESTIONS AS INITIALLY PRESENTED TO TAXPAYERS, PRACTITIONERS & GOVERNMENT OFFICIALS22

The questions initially provided to taxpayers, practitioners, and government officials to evaluate each jurisdic-tion are provided below.23

22 This Scorecard could not have been completed without the assistance of the state tax administrators and practitioners that responded to our

questionnaires. The uncompensated time they put into reviewing our analysis of each state’s sales tax law and providing us with feedback is

deeply appreciated. Additionally, COST members provided comments to finalize this Scorecard.

23 Note, not all the questions were used in the final version of this Scorecard.

Intermediate Transactions/ Business Inputs

1. Does the state have an independent tax appeal forum possessing the following elements: the forum is truly independent; the forum is ded-icated to handling tax disputes; the forum’s judges possess requisite tax expertise; and the forum establishes the record for further appeal?

2. Does the state have a manufacturing equipment exemption?

3. Does the exemption cover the entire facility (integrated plant); or provide a more limited exemption (e.g., only equipment used directly in manufacturing)?

4. Does the state have a manufacturing inputs exemption?

5. Does the state have an exemption that applies to the purchase of equipment by the following service providers?

a. Wired and Wireless Telecommunication Service Providers: Are the services them-selves subject to a sales tax or other excise tax when sold to an end use consumer?

b. Cable Service Providers: Are any of the above services subject to a sales tax or other excise tax when sold to an end-use consumer?

c. Electric and Gas Products/Services: Are sales of electricity and gas themselves sub-ject to a sales tax or other excise tax when sold to an end use consumer?

State Sales Tax Administration

1. Does the state have local sales tax jurisdictions; and, if so, approximately how many local sales tax jurisdictions are there?

a. If yes, is the local sales and use tax centrally administered?

b. If yes, do all the local sales tax jurisdictions have to use the same tax base as the state?

2. Does the state impose a “good faith” require-ment on sellers accepting exemption certifi-cates (e.g., the seller can be held responsible for determining whether a purchaser qualifies for an exemption even if the exemption certificate is properly completed)?

3. Does the state allow a seller at least 120 days during an audit to obtain valid exemption certif-icates (please provide number of days)?

4. Can multistate exemption certificates (MTC and SSUTA) be used to claim an exemption?

5. Are sellers required to capture and verify ex-emption account numbers?

6. Does the state provide vendor compensation to some or all sellers?

7. Does the state have a broad-based direct pay provision (i.e., not limited to certain types of manufacturers)?

19

Local Sales Tax Administration

1. Does the tax agency website have a central lo-cation where taxpayers can access sales/use tax laws, current regulations, information releases, forms, and explanations of how the sales/use is applied?

2. Does the state provide both current and histor-ical tax rate and boundary database on its web-site in a format that can be uploaded for use by sellers in their POS systems?

3. Does the state provide broad liability relief to sellers and purchasers when they rely on tax agency’s guidance, including the rate and boundary database?

Simplification and Transparency

1. Is the state a full member of the Streamlined Sales and Use Tax Agreement?

2. Does the state impose a tax on digital products (i.e., digital audio, video and books)?

a. If yes, is the tax on digital products based on the products categorization as a service or some other express reference?

b. If yes, is the tax on digital products based on the enactment of a specific law to tax such products (not administrative position)?

3. Does the state impose a tax on a person merely accessing (no delivery) of pre-written computer software?

a. If yes, is the tax imposed based on the ac-cess to software’s categorization as a service or some other express reference?

b. If yes, is it based on the enactment of a spe-cific law to tax such software (not adminis-trative position)?

Tax Payment Administration

1. Does the state allow taxpayers to remit the tax using ACH debit and credit?

2. Does the state require sellers to make accelerat-ed payments (e.g., payments of the tax prior to the due date of the return)?

a. If so, when are the payments required to be made?

3. Does the state provide credit for sales, use, and similar taxes (e.g., motor vehicle excise tax) imposed by another state?

4. Is the credit for another state’s tax allowed regardless of whether your state is imposing its sales tax or use tax?

5. Does the state allow a full credit for other states’ state, local and similar taxes (e.g., not limited to state-to-state or local-to-local taxes)?

6. Does the credit against sales tax paid include tax paid to another state on accelerated lease payments (e.g., sales tax must be paid upfront for all lease payments)?

7. Does the state have a bad debt provision?

a. If so, does it apply to private-label credit cards?

8. Are officers’ SSNs and/or home addresses re-quired on registration forms or returns?

Audit and Refund Procedures

1. Does the state have a written policy that clearly allows taxpayers to use sampling to the same extent the tax agency can use it?

2. Does the state prohibit the use of both pri-vate-contract auditing and contingent fee audit-ing?

3. Does the state allow sales/use tax assessments to be offset by sales/use tax refunds?

4. Does the state have a written process that allows purchasers to obtain refunds from the state without going through the seller?

5. Does the state preclude or have a process that curtails the application of a false claims act?

6. Does the state preclude or have a process that curtails the application of class action lawsuits to sales and use taxes?

20

SCO

RE

CA

RD

DE

TAIL

BY

STA

TE

ALA

BA

MA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

5%.

Mfg

. eq

uip

. is

tax

able

w/

red

uce

d 1

.5%

rate

. So

me

loca

l rat

es a

lso

red

uce

d. A

C

§ 4

0-2

3-2

(3).

Mfg

. ex

emp

tio

n is

lim

ited

to m

ach

iner

y, p

arts

, an

d a

ttac

hm

ents

use

d

in m

fg.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

eria

ls t

hat

bec

om

e an

ingr

edie

nt

or

com

po

nen

t p

art.

AC

§ 4

0-2

3-1

(a)(

10

);

AC

§ 4

0-2

3-6

0(5

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le, w

/

red

uce

d r

ate

of

1.5%

, dep

end

ing

on

use

.

AC

§§ 4

0-2

3-2

(3),

-61

(b);

AA

C r

.81

0-6

-5-

.36

.01

(4).

Bo

th s

ervi

ces

are

also

tax

ed a

t

con

sum

er le

vel.

AC

§§ 4

0-2

1-8

2(b

), -1

21

.

Cab

le e

qu

ip.:

tax

able

, ho

wev

er

bro

adca

stin

g eq

uip

. has

red

uce

d 1

.5%

rate

. AA

C r

.81

0-6

-2-.9

8, 8

10

-6-1

-.04

(2).

Cab

le is

no

t ta

xed

at

con

sum

er le

vel.

AC

§ 4

0-2

3-1

(a)(

6).

Elec

tric

an

d g

as p

rod

uct

s/se

rvic

es:

tax

able

, w/r

edu

ced

rat

e. A

AC

r.8

10

-6-2

-

.10

1. E

lect

rici

ty a

nd

gas

is t

axed

at

the

con

sum

er le

vel.

AC

§ 4

0-2

1-8

2.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

AA

C

r.81

0-6

-5-.0

2(1

3);

no

ru

le

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

.

on

au

dit

.

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs m

ust

cap

ture

/

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

AA

C r

.81

0-6

-4-.1

0.

Ven

do

r co

mp

.: 5%

of

the

firs

t $1

00 t

ax d

ue,

an

d 2

% o

f

rem

ain

ing

tax

du

e (c

app

ed

at $

400

per

mo

nth

). A

C §

40

-23

-36

; AA

C r

.81

0-6

-4-.0

3.

Dir

ect

pay

lim

ited

to

cer

tain

ven

do

rs, i

ncl

ud

es m

fg.,

tran

spo

rtat

ion

co

mp

any,

and

min

ing.

AC

§ 4

0-2

3-3

1; A

AC

r.81

0-6

-4-.1

4.

902

loca

l tax

juri

sdic

tio

ns

(rat

io o

f

5,18

4).

Som

e ce

ntr

al a

dm

in.,

bu

t n

ot

all l

oca

l

juri

sdic

tio

ns.

In

add

itio

n, s

om

e lo

cals

do

n’t

use

th

e st

ate

app

eals

pro

cess

. AC

§§ 1

1-3

-11

.2(a

), 1

1-

51

-20

0 e

t se

q. S

om

e

loca

l tax

juri

sdic

tio

ns

hav

e d

iffe

ren

t ta

x b

ase

(e.g

., b

ack-

to-s

cho

ol

tax

ho

liday

s an

d f

oo

d).

AC

§ 1

1-5

1-2

01

(a).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s an

d b

ou

nd

ary

dat

abas

e. h

ttp:/

/

reve

nu

e.a

laba

ma

.

gov/

sale

sta

x/

sta

tera

tes.

cfm

.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d w

/

ou

t cl

ear

stat

uto

ry

auth

ori

ty o

n d

igit

al

pro

du

cts.

Acc

ord

ing

to D

OR

,

no

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Lim

ited

liab

ility

rel

ief

to s

elle

rs o

r p

urc

has

ers

rely

ing

on

DO

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. AC

§ 4

0-2

3-6

5. F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

.

AA

C r

.81

0-6

-5-.0

4.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. A

C §

40

-27

-

1, A

rt. V

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o

pri

vate

-lab

el c

red

it

card

s. W

ells

Fa

rgo F

in.,

19 S

o.3

d 8

92 (

Ala

. Civ

.

Ap

p. 2

008)

.

Eff.

Mar

ch 2

018,

pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m s

tate

wit

ho

ut

goin

g th

rou

gh t

he

selle

r.

AC

§ 2

01

8-1

30

,

AC

§ r

. 40

-24

-7.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Patt

erso

n v

.

Gla

dw

in C

orp

.,

835

So. 2

d 1

37

(Ala

. 200

2).

Co

nti

nge

nt

fee

aud

itin

g is

pro

hib

ited

. So

me

loca

ls u

se p

riva

te-

con

trac

t au

dit

ing.

AC

§ 4

0-2

A-6

.

ALA

SKA

– N

ot

Ap

pli

cab

le

21

AR

IZO

NA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

3%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

di-

rect

ly u

sed

in m

fg. A

RS

§ 4

2-5

15

9(B

)(1

).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P d

i-

rect

ly e

nte

rin

g (p

hys

ical

ly in

corp

ora

ted

)

into

pro

du

cts.

AR

S § 4

2-5

15

9(A

)(4

); A

AC

R1

5-5

-12

2.

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. A

RS

§

42

-50

64

(B)(

3).

Bo

th s

ervi

ces

are

tax

ed a

t

con

sum

er le

vel.

AR

S § 4

2-5

06

4(A

).

Cab

le e

qu

ip.:

tax

able

. AR

S § 4

2-5

06

1(B

)

(15

)(a

). S

ervi

ces

are

no

t ta

xed

at

con

-

sum

er le

vel.

AR

S § 4

2-5

06

4(A

).

Elec

tric

an

d g

as e

qu

ip.:

Part

ially

tax

able

;

[gas

an

d e

lect

ric

dis

trib

uti

on

fac

iliti

es a

re

tax

able

]. A

RS

§ 42

-506

1(B

)(4)

; Ele

ctri

city

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed,

exce

pt

for

elec

tric

ity

and

gas

so

ld t

o

qu

alifi

ed m

anu

fact

ure

rs o

r sm

elte

rs. A

RS

§

42-5

063(

A),

(C).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

AR

S

§ 4

2-5

00

9(A

); n

o r

ule

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

.

on

au

dit

.

Lim

ited

use

of

MT

C e

xem

p-

tio

n c

erts

. fo

r re

sale

(o

ther

-

wis

e, it

may

no

t b

e ac

cep

ted

as a

n e

xem

pti

on

cer

t.).

Selle

rs m

ust

cap

ture

/ver

ify

exem

pti

on

acc

ou

nt

nu

m-

ber

s. A

RS

§ 4

2-5

02

2.

Ven

do

r co

mp

.: 1%

of

tax

du

e (c

app

ed a

t $1

0,00

0

per

cal

end

ar y

ear)

. AR

S §

42

-50

17

.

Dir

ect

pay

allo

wed

to

per

-

son

s p

urc

has

ing

$500

,000

or

mo

re o

f TP

P p

er y

ear.

AR

S

§ 4

2-5

16

7(A

).

116

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

55,1

04).

Eff.

1/1/

17, c

entr

al a

d-

min

. of

the

loca

l tax

es.

AR

S § 4

2-6

00

1(A

).

Each

mu

nic

ipal

ity

det

erm

ines

its

tax

bas

e b

ut

mu

st p

ost

chan

ges

in t

he

Mo

del

Cit

y Ta

x C

od

e m

ain

-

tain

ed b

y D

OR

. AR

S

§ 4

2-6

00

2(A

); A

RS

§

42

-60

53

.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bu

t d

oes

no

t h

ave

a

bo

un

dar

y d

atab

ase.

htt

ps:

//w

ww

.azd

or.

gov/

Tra

nsa

ctio

nP

riv-

ileg

eTa

x(TP

T)/

Wh

ats

-

New

/ta

bid

/42

1/

cmd8

02

/arc

h/D

e-

fau

lt.a

spx.

No

t a

full

SSU

TA m

em-

ber

bu

t p

arti

cip

ates

in

SLA

C.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

dig

ital

pro

du

cts.

AA

C R

15

-5-1

54

(B).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Ari

zon

a T

axp

aye

r In

-

form

ati

on

Ru

lin

g N

o.

LR1

1-0

11

, No.

LR

11

-

01

0 (

6/2

2/1

1).

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

.

Selle

rs o

win

g o

ver

$1M

per

yea

r m

ust

mak

e

an a

dva

nce

pay

men

t

each

Ju

ne.

AR

S § 4

2-

50

14

(D).

Cre

dit

lim

ited

to

use

tax

. AR

S § 4

2-5

15

9(2

).

Do

es n

ot

pro

vid

e

cred

it f

or

oth

er s

tate

s’

loca

l tax

es. A

RS

§ 4

2-

51

59

(2).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. A

AC

R1

5-5

-

15

03

(H).

Bad

deb

t d

edu

ctio

n

do

es n

ot

gen

eral

ly

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. A

AC

R1

5-

5-2

01

1(A

).

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

AA

C R

42

-11

18

(E).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

Co

nti

nge

nt

fee

au-

dit

ing

is p

roh

ibit

-

ed. S

on

e lo

cals

use

pri

vate

-co

ntr

act

aud

itin

g. A

RS

§ 4

2-

10

04

(B)(

3).

22

AR

KA

NSA

S

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

8%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

di-

rect

ly u

sed

in m

fg. A

CA

§§ 2

6-5

2-4

02

(a)

(1)(

A),

(a

)(3

)(A

).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

e-

rial

s b

eco

min

g a

“rec

ogn

izab

le in

tegr

al

par

t” a

nd

to

cer

tain

defi

ned

item

s co

n-

sum

ed o

r u

sed

in t

he

mfg

. pro

cess

. AC

A §

26

-52

-40

1(1

2)(

B).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. A

CA

§ 2

6-5

3-1

08

(b);

serv

ices

are

tax

ed a

t

con

sum

er le

vel.

AC

A §

26

-52

-31

5.

Cab

le e

qu

ip.:

tax

able

. AC

A §

26

-52

-30

1(3

)

(C).

Cab

le s

ervi

ces

are

tax

able

at

con

sum

-

er le

vel.

AC

A §

§ 2

6-5

2-3

15

(a),

-30

1(3

)

(c).

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le;

[gas

an

d e

lect

ric

dis

trib

uti

on

fac

iliti

es

are

tax

able

]. A

CA

§§ 2

6-5

2-4

02

, -1

08

.

Elec

tric

ity

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed, e

xce

pt

for

sale

s to

man

ufa

ctu

rers

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

AC

A

§ 2

6-2

1-1

07

; AC

r.7

9(E

)(2

);

selle

rs a

llow

ed a

t le

ast

120

day

s to

ob

tain

val

id c

erts

. on

aud

it. A

C r

.79

(E)(

4).

MT

C &

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

AC

r.7

9(F

)(1

)(a

).

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: 2%

of

tax

du

e (c

app

ed a

t $1

,000

per

mo

nth

). S

epar

ate

cap

s fo

r

loca

l co

llect

ion

s. A

CA

§ 2

6-

52

-50

3.

AR

has

a b

road

-bas

ed d

irec

t

pay

pro

visi

on

. AC

A §

26

-52

-

50

9(a

)(1

).

398

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

7,32

6).

Cen

tral

ad

min

. of

the

loca

l tax

es. L

oca

ls

hav

e sa

me

tax

bas

e.

AC

A §

§ 2

6-7

4-2

12

(a),

-40

7.

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e, b

ut

no

t

his

tori

cal t

ax r

ates

.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

AC

A §

26

-52

-

30

1(1

)(B

), (

3)(

C)(

iii)

.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

AC

r.2

5(A

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DFA

wri

tten

guid

ance

. AC

A §

26

-

21

-10

6, R

ule

GR

-75

.

Selle

rs w

ith

$20

0,00

0

in s

ales

per

mo

nth

mu

st m

ake

bim

on

thly

adva

nce

pay

men

ts

(am

ou

nti

ng

to 8

0 p

er-

cen

t o

f ta

x d

ue)

. AC

A §

26

-52

-51

2; A

C r

.77

(D).

Cre

dit

lim

ited

to

use

tax

. AC

A §

26

-53

-

13

1(a

)(1

). F

ull

cred

it

for

oth

er s

tate

s’ s

tate

and

loca

l tax

es.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. AC

A

§ 2

6-5

3-1

31

; Ru

le U

T-

12

.C; A

CA

§ 2

6-5

-10

1,

Art

. V.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

AC

A §

§ 2

6-5

2-3

09

,

26

-53

-11

1.

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

by

go-

ing

thro

ugh

sel

ler

to s

ecu

re a

ven

do

r

assi

gnm

ent.

AC

A

§ 2

6-1

8-5

07

, AC

r.81

.1.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

AC

A §

20

-

77

-90

1 e

t se

q.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. S

tate

Dep

t. of

Fin

. &

Adm

in. v

. Ted

der

,

932

S.W

.2d

755

(Ark

. 199

6).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g. A

CA

§2

6-

18

-30

3.

23

CA

LIF

OR

NIA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

9%.

Mfg

. eq

uip

. tax

able

w/r

edu

ced

3.3

125%

rate

, lim

ited

to

TP

P p

urc

has

ed f

or

use

pri

mar

ily in

an

y st

age

of

mfg

. CR

TC

§

63

77

.1(a

)(1

).

Part

ial m

fg. i

np

uts

ex

emp

tio

n li

mit

ed

to T

PP

pu

rch

ased

by

per

son

s fo

r th

e

pri

mar

y p

urp

ose

of

inco

rpo

rati

ng

it in

to

a m

anu

fact

ure

d a

rtic

le t

o b

e so

ld. 1

8 C

CR

§ 1

52

5(b

).

Wir

ed a

nd

wir

eles

s: t

axab

le. W

ired

serv

ices

are

no

t ta

xed

at

con

sum

er le

vel,

bu

t w

irel

ess

serv

ices

are

tax

ed. C

RTC

§§ 6

00

6, 4

21

00

. Ad

dit

ion

ally

, cer

tain

surc

har

ges

may

ap

ply

.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e n

ot

tax

ed a

t co

nsu

mer

leve

l. C

RTC

§ 6

00

6.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

w/l

imit

ed

exem

pti

on

fo

r el

ecti

on

lin

es, p

ole

s, t

ow

-

ers,

an

d c

on

du

its.

CR

TC

§ 6

01

6.5

. Ele

c-

tric

ity

and

gas

sal

es a

re s

ub

ject

to

ex

cise

tax

es a

nd

su

rch

arge

s. C

RTC

§ 6

35

3.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

18

CC

R §

16

67

(b)(

1);

no

gen

eral

ru

le a

llow

ing

selle

rs

at le

ast

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. 1

8 C

CR

§ 1

66

7(b

)(2

).

Lim

ited

use

of

MT

C e

xem

p-

tio

n c

erts

. fo

r re

sale

(o

ther

-

wis

e, it

may

no

t b

e ac

cep

ted

as a

n e

xem

pti

on

cer

t.).

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ith

TP

P s

ales

to

talin

g

at le

ast

$75M

per

qu

arte

r. 1

8

CC

R §

16

99

.5(a

).

365

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

102,

066)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. C

RTC

§§

72

02

(d),

72

70

. Lo

cal

tax

juri

sdic

tio

ns

hav

e

the

sam

e ta

x b

ase

as

the

stat

e. C

RTC

§§

72

02

(b),

(c)

.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bu

t d

oes

no

t h

ave

a

bo

un

dar

y d

atab

ase.

htt

ps:

//w

ww

.boe.

ca.g

ov/s

uta

x/a

r-

chiv

e_ra

tes.

htm

.

No

t a

full

SSU

TA

mem

ber

.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Pu

b.

10

9 (

6/1

2).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Pu

b. 1

09

(6

/12

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DT

FA g

uid

-

ance

. 18

CC

R §

17

05

.

Sel

lers

wit

h a

mo

nth

ly

esti

mat

ed t

ax o

f >

$17K

mu

st m

ake

adva

nce

pay

men

ts. C

RTC

§

64

52

.

Cre

dit

lim

ited

to

use

tax

. CR

TC

§ 6

406.

Fu

ll

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

.

CR

TC

§ 6

40

6.

No

acc

el. l

ease

pay

-

men

ts b

ut

con

tin

ues

tax

on

cer

tain

leas

e

pay

men

ts u

sin

g o

rigi

n

loca

tio

n. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. 1

8 C

CR

§

16

60

(c)(

8);

CR

TC

§

64

06

.

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. C

RTC

§§

6055

(a),

(b),

6203

.5(a

).

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller

if t

he

pu

rch

aser

pai

d u

se t

ax. C

RTC

§ 6

90

1.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

CG

C §

12

65

1(f

).

Ver

y lim

ited

, wri

t-

ten

au

th. r

equ

ired

to b

e p

art

of

clas

s

acti

on

su

it. C

ity

of

San

Jose

v. S

uper

.

Ct.

, 525

P.2

d 7

01

(Cal

. 197

4); C

RTC

§ 6

90

4(b

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

24

CO

LOR

AD

O

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o e

qu

ip.

use

d d

irec

tly

and

pre

do

min

antl

y in

mfg

.

of T

PP,

wit

h 1

+ y

r. u

sefu

l lif

e, c

ost

ing

$500

+. C

RS

§ 3

9-2

6-7

09

. So

me

loca

l ju

ris-

dic

tio

ns

do

no

t p

rovi

de

any

mfg

. mac

hin

-

ery

exem

pti

on

. Fo

rm D

R 1

00

2.

Mfg

. in

pu

ts e

xem

pti

on

gen

eral

ly li

mit

ed

to in

pu

ts e

nte

rin

g in

to t

he

pro

cess

ing

of

or

bec

om

ing

an in

gred

ien

t o

r co

mp

on

ent

par

t o

f th

e p

rod

uct

. C

RS

§ 3

9-2

6-1

02

(20

)

(a).

Wir

ed a

nd

wir

eles

s: g

ener

ally

, tax

able

, bu

t

limit

ed r

efu

nd

ava

ilab

le t

o b

road

ban

d

pro

vid

ers.

In

tras

tate

tel

eph

on

e se

rvic

es

are

tax

ed a

t co

nsu

mer

leve

l. C

RS

§§ 3

9-

26

-10

5(1

)(a

), -1

04

(1)(

c).

Cab

le: t

axab

le. C

able

ser

vice

s n

ot

tax

ed a

t

stat

e le

vel,

bu

t so

me

ho

me

rule

juri

sdic

-

tio

ns

tax

th

ese

serv

ices

. CR

S § 3

9-2

6-1

05

.

Elec

tric

an

d g

as e

qu

ip.:

gen

eral

ly t

axab

le.

CR

S § 3

9-2

6-7

24

. Ele

ctri

city

an

d g

as is

tax

ed f

or

com

mer

cial

use

rs. C

RS

§ 3

9-2

6-

10

5(1

)(a

)(II

).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

DR

05

63

(0

8/1

3)

Inst

ruct

ion

s;

no

ru

le a

llow

ing

selle

rs a

t

leas

t 12

0 d

ays

to o

bta

in

valid

cer

ts. o

n a

ud

it, b

ut

flex

ible

on

au

dit

.

MT

C a

nd

SSU

TA e

xem

p-

tio

n c

erts

. may

be

use

d f

or

tax

able

go

od

s, b

ut

no

t fo

r

resa

le o

f ta

xab

le s

ervi

ces.

CO

GIL

13

-00

6.

Selle

rs m

ust

cap

ture

ex

emp

-

tio

n a

cco

un

t n

um

ber

s. G

IL

12

-00

6.

Ven

do

r co

mp

.: 3.

33%

of

tax

du

e. C

RS

§ 3

9-2

6-1

05

(1)(

C)

(II)

(A).

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts m

akin

g $7

M+

wo

rth

of

tax

able

an

nu

al s

ales

. C

RS

§ 3

9-2

6-1

03

.5(1

).

322

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

15,6

19).

All

loca

l tax

es a

re n

ot

cen

tral

ly a

dm

in.

Som

e h

om

e-ru

le lo

cal-

itie

s d

efin

e th

eir

ow

n

tax

bas

e an

d s

epar

ate

app

eals

. CR

S §§ 2

9-2

-

10

5(1

)(d)(

I).

Web

site

has

cu

rren

t

tax

rat

es, b

ut

no

t

his

tori

cal t

ax r

ates

or

a b

ou

nd

ary

dat

abas

e.

htt

ps:

//w

ww

.colo

ra-

do.

gov/

pa

cific/

tax/

sale

s-ta

x-ra

tes.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

dig

ital

pro

du

cts.

CO

GIL

-13

-02

0 (

Au

g.

20

, 20

13

).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

CR

S §§ 3

9-2

6-1

02

(15

)

(c)(

I), -

(c)(

II)(

A).

Lim

ited

tax

liab

ility

relie

f fo

r se

llers

an

d

pu

rch

aser

s re

lyin

g o

n

DO

R g

uid

ance

. CR

S §

39

-26

-10

5.3

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. CC

R §

39

-26

-

71

3.2

(F).

Fu

ll cr

edit

for

oth

er s

tate

s’ s

tate

and

loca

l tax

es. C

CR

§

39-2

6-71

3.

No

acc

el. l

ease

pay

-

men

ts b

ut

con

tin

ues

tax

on

cer

tain

leas

e

pay

men

ts u

sin

g o

rigi

n

loca

tio

n. U

ncl

ear

if

cred

it p

rovi

ded

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

CR

S § 3

9-2

6-1

02

(5);

CC

R §

§ 3

9-2

6-1

02

.5(a

)

(4),

-11

1.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. h

ttps:

//

ww

w.c

olo

rado.

gov/

pa

cific/

site

s/

def

au

lt/fi

les/

Sale

s90

.pdf.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es. C

RS

§ 2

6-1

-

12

7 e

t se

q.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. C

RS

§

39

-26

-70

3(2

.5)(

c).

No

co

nti

nge

nt

fee

aud

itin

g.

Som

e lo

cals

use

pri

vate

-co

ntr

act

aud

itin

g.

Co

lora

do

selle

rs

lack

ing

nex

us

in

a lo

calit

y

can

hav

e

dis

pu

tes

wit

h c

us-

tom

ers

wh

en

colle

ct-

ing

tax

w/o

ut

hav

ing

a

ph

ysic

al

pre

sen

ce

in t

he

loca

lity.

25

CO

NN

EC

TIC

UT

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

9%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o m

a-

chin

ery

use

d d

irec

tly

in m

fg. C

GS

§ 1

2-

41

2(3

4);

50%

ex

emp

tio

n f

or

M&

E u

sed

pri

mar

ily in

mfg

., p

roce

ssin

g, o

r fa

bri

cat-

ing.

CG

S § 1

2-4

12

i.

Mfg

. in

pu

ts f

ull

exem

pti

on

lim

ited

to

ma-

teri

als,

to

ols

, an

d f

uel

s u

sed

dir

ectl

y in

an

ind

ust

rial

pla

nt

in t

he

actu

al f

abri

cati

on

of

a fi

nis

hed

pro

du

ct. C

GS

§ 1

2-4

12

(18

).

50%

ex

emp

tio

n f

or

mat

eria

ls, t

oo

ls, a

nd

fuel

s o

ther

wis

e co

nsu

med

in m

fg. C

GS

§

12

-41

2i.

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

. CG

S § 1

2-4

12

(11

2).

Ser

vice

s ar

e

tax

ed a

t co

nsu

mer

leve

l. C

GS

§ 1

2-4

07

(a)

(2)(

K).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le. C

GS

§ 1

2-

41

2(1

12

). S

ervi

ces

are

tax

ed a

t co

nsu

mer

leve

l. C

GS

§§ 1

2-4

07

(a)(

2)(

A),

(a

)(2

)(L)

.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

CG

S § 1

2-4

12

. Ele

ctri

city

an

d g

as is

tax

ed

for

com

mer

cial

use

rs. C

GS

§ 1

2-4

12

(3).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

CG

S § 1

2-4

10

(2);

no

ru

le

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

.

on

au

dit

.

Lim

ited

use

of

MT

C e

xem

p-

tio

n c

erts

.

Selle

rs m

ust

cap

ture

reg

-

istr

atio

n n

um

ber

s, b

ut

no

veri

fica

tio

n r

equ

irem

ent.

No

ven

do

r co

mp

.

Dir

ect

pay

allo

wed

wh

en

ther

e ar

e “s

uffi

cien

t vo

lum

e”

of

pu

rch

ases

to

just

ify

the

exp

ense

of

aud

its

by

the

com

mis

sio

ner

. CG

S § 1

2-

40

9a

.

No

loca

l sal

es t

ax ju

ris-

dic

tio

ns.

Web

site

has

cu

rren

t

tax

rat

e an

d n

o t

ax

rate

ch

ange

w/p

ast

5

year

s. h

ttp:/

/ask

drs

.

ct.g

ov/S

crip

ts/d

rsri

-

ghtn

ow.c

fg/p

hp.e

xe/

endu

ser/

std_a

dp.

ph

p?p

_fa

qid

=3

98

.

No

t a

full

SSU

TA

mem

ber

.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

dig

ital

pro

du

cts

(“co

mp

ute

r an

d d

ata

pro

cess

ing

serv

ices

”).

CG

S § 1

2-4

08

(1)(

D)

(i).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Poli

cy S

tate

men

t

20

04

(2),

Sa

les

an

d

Use

Ta

xes

on

In

ter-

net

Acc

ess

Serv

ices

an

d O

n-L

ine

Sale

s of

Goods

an

d S

ervi

ces;

FAQ

75

0; R

uli

ng

No.

20

15

-5.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. C

GS

§ 1

2-4

30

(5).

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. C

GS

§ 1

2-4

30

(5).

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. Poli

cy

Sta

tem

ent

96

(10

).

Bad

deb

t d

edu

ctio

n

do

es n

ot

gen

eral

ly

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. C

GS

§

12

-40

8(2

)(B

); C

AR

§

12

-40

8-1

(d).

Pu

rch

aser

s ca

n

ob

tain

sel

ler’

s

wri

tten

ass

ign

-

men

t o

f re

fun

d

clai

m t

o o

bta

in

a re

fun

d f

rom

the

stat

e. P

oli

cy

Sta

tem

ent

98

(5),

Sale

s a

nd U

se T

ax

Ref

un

d P

oli

cy.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es. C

GS

§ 5

3-

44

0 e

t se

q.

Som

e cl

ass

acti

on

suit

s al

low

ed. S

ee

Ferr

ie v

. Dir

ecTV,

LLC

, 3:1

5-C

V-4

09

(JC

H),

20

16

WL

18

34

74

(D

. Con

n.

Jan

. 12

, 20

16

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

DE

LAW

AR

E –

No

t A

pp

lica

ble

26

DIS

TR

ICT

OF

CO

LUM

BIA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. tax

able

. DC

C §

47

-20

02

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

inp

uts

use

d o

r in

corp

ora

ted

into

oth

er T

PP

fo

r

sale

by

mfg

. DC

C §

47

-20

01

(n)(

1).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. D

CC

§§ 4

7-2

00

5(5

)(B

), (

C).

Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

DC

C §

§ 4

7-2

00

1(n

)

(1)(

G),

-20

02

, -3

90

2.

Cab

le e

qu

ip.:

exem

pt.

DC

C §

47

-20

05

(5)

(D).

Ser

vice

s ar

e ta

xed

at

con

sum

er le

vel.

DC

C §

47

-20

05

(26

).

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

DC

C §

§

47

-25

01

, -2

00

5(5

)(A

). So

me

serv

ices

are

tax

ed a

t th

e co

nsu

mer

leve

l. D

CC

§§ 4

7-

20

01

(n)(

1)(

D),

-20

05

(11

), -2

00

5(2

4).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

DC

C

§ 4

7-2

01

0; n

o r

ule

allo

win

g

selle

rs a

t le

ast

120

day

s to

ob

tain

val

id c

erts

. on

au

dit

.

No

lon

ger

allo

ws

use

of

MT

C e

xem

pti

on

cer

ts.

Selle

rs m

ust

cap

ture

reg

is-

trat

ion

nu

mb

ers.

No

ven

do

r co

mp

.

No

dir

ect

pay

per

mit

s

allo

wed

.

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

dig

ital

pro

du

cts

(“b

ased

on

info

ser

-

vice

s an

d d

ata

pro

cess

-

ing

serv

ices

”). D

CC

§§

47

-20

01

(s),

-22

01

(n)

(1)(

N),

-22

01

(j).

Tax

imp

ose

d o

n a

per

-

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e (d

ata

pro

cess

-

ing

and

info

ser

vice

s).

DC

C §

47

-20

01

(n)(

1)

(N)(

i).

No

tax

liab

ility

rel

ief

for

rely

ing

on

OT

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. D

CC

§ 4

7-2

20

6.

Full

cred

it f

or

oth

-

er s

tate

s’ s

tate

an

d

loca

l tax

es. D

CC

§ 4

7-

22

06

(3).

No

acc

el. l

ease

pay

-

men

ts. U

nkn

ow

n if

DC

cred

its

agai

nst

tax

pai

d

to a

no

ther

sta

te o

n

acce

l. le

ase

pay

men

ts.

Bad

deb

t d

edu

ctio

n

do

es n

ot

gen

eral

ly

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. 9

DC

MR

§

41

0.4

.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

DC

C §

2-3

81

.02

(d).

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

SSN

s an

d

ho

me

add

ress

-

es a

re

req

uir

ed

on

reg

-

istr

atio

n

form

s

and

on

retu

rns.

htt

ps:

//

ww

w.

taxp

ay-

erse

r-

vice

cen

-

ter.c

om

/

fr5

00

/

Loa

d-

Step

1.d

o.

27

FLO

RID

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n e

xem

pts

all

M&

E

pu

rch

ases

wit

h a

3-y

ear

life

or

lon

ger

that

are

det

erm

ined

to

be

inte

gral

to

th

e m

fg.

pro

cess

. FS

§ 2

12

.08

(5).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

raw

ma-

teri

als

that

bec

om

e a

com

po

nen

t p

art

of

a

pro

du

ct p

rod

uce

d f

or

sale

or

for

pu

rpo

ses

of

R&

D, p

rod

uct

pac

kagi

ng,

var

iou

s b

oile

r

fuel

s, a

nd

ele

ctri

city

use

d b

y sp

ecifi

c

ind

ust

ries

. FS

§§ 2

12

.05

2, 2

12

.08

. Do

es

no

t in

clu

de

exp

end

able

mat

eria

ls t

hat

do

no

t b

eco

me

a co

mp

on

ent

of

the

fin

ish

ed

pro

du

ct, m

ost

fu

els,

an

d o

ther

en

ergy

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. F

S §

21

2.0

5(1

)(f)

. Ser

vice

s ar

e ta

xed

at

con

-

sum

er le

vel.

FS §

20

2.1

2(1

)(a

).

Cab

le e

qu

ip.:

tax

able

. FS

§ 2

12

.05

(1)(

f).

Serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. FS

§ 2

02

.11

.

Elec

tric

eq

uip

. is

exem

pt;

gas

equ

ip. i

s ta

x-

able

. FS

§§ 2

12

.08

(5)(

c), (

7)(

hh

). E

lec-

tric

an

d g

as s

ervi

ces

sub

ject

to

sal

es t

ax

or

GR

T e

xce

pt

for

mo

st m

anu

fact

ure

rs.

FS §

§ 2

12

.02

, .0

8(5

); FA

C r

.12

A-1

.05

3,

1.0

59

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

fo

r

resa

le. F

AC

r.1

2A

-1.0

39

(5).

No

ru

le a

llow

ing

selle

rs

at le

ast

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it, b

ut

selle

rs m

ay p

rovi

de

cert

s.

any

tim

e d

uri

ng

an a

ud

it. F

S

§§ 2

12

.07

(1)(

b).

MT

C e

xem

pti

on

cer

ts.

gen

eral

ly n

ot

allo

wed

. FA

C

r.12

A-1

.03

9(8

).

Selle

rs m

ust

cap

ture

/ver

ify

exem

pti

on

acc

ou

nt

nu

m-

ber

s. F

AC

r.1

2A

-1.0

38

(h).

Ven

do

r co

mp

.: 2.

5% o

f ta

x

du

e fo

r se

llers

wh

o r

epo

rt

via

elec

tro

nic

mea

ns

on

ly

(cap

ped

at

$1,2

00 p

er

rep

ort

ing

per

iod

). FS

§

21

2.1

2(1

)(a

).

Dir

ect

pay

lim

ited

to

air

carr

iers

, rai

lro

ads,

mo

tor

car-

rier

s, v

esse

ls, a

nd

dea

lers

of

TP

P w

ho

mee

t ce

rtai

n r

eqs.

FAC

r.1

2A

-1.0

91

1(2

)(b),

FS

§ 2

12

.18

3.

62 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

303,

247)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. F

S §

21

2.0

54

(4)(

a).

Loca

ls

hav

e sa

me

tax

bas

e

as t

he

stat

e. F

S §

21

2.0

54

.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bu

t d

oes

no

t h

ave

a

bo

un

dar

y d

atab

ase.

htt

p:/

/dor.m

yflori

da

.

com

/dor/

taxe

s/ta

x_

inte

rest

_ra

tes.

htm

l.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n c

er-

tain

dig

ital

pro

du

cts

via

com

mu

nic

atio

ns

serv

ices

tax

. Flo

rida

Tech

nic

al A

ssis

tan

ce

Advi

sem

ent

14

A1

9-

00

5 (

Dec

. 18

, 20

14

);

Flori

da

Tec

hn

ica

l

Ass

ista

nce

Advi

sem

ent

14

A1

9-0

06

(D

ec. 1

9,

20

14

).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Tech

nic

al A

ssis

tan

ce

Advi

sem

ent

14

A-0

01

(1/1

4).

Lim

ited

tax

liab

ility

relie

f fo

r se

llers

an

d

pu

rch

aser

s re

lyin

g o

n

DO

R g

uid

ance

. FS

§§

21

3.2

2(1

), 2

13

.21

(3)

(B).

Selle

rs m

ust

mak

e

adva

nce

pay

men

ts. F

S §

21

2.1

1. P

aym

ent

is d

ue

wit

h t

he

retu

rn f

or

the

pri

or

mo

nth

.

Cre

dit

no

t lim

ited

to

use

tax

. FS

§ 2

12

.06

(7).

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. F

lori

da

Ta

x In

-

form

ati

on

Pu

bli

cati

on

No.

00

A0

1-3

6.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

(w

ith

con

dit

ion

s). F

AC

r.12

A-1

.00

7(1

3).

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. F

S §§

21

2.1

7(3

), (

4).

No

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s to

ob

-

tain

ref

un

ds

fro

m

the

stat

e w

/ou

t

goin

g th

rou

gh t

he

selle

r. C

laim

ants

mu

st h

ave

mad

e

pay

men

t d

irec

tly

to D

OR

to

rec

eive

refu

nd

. DR

-26

S

(1/0

8).

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly

to t

axes

. FS

§

21

3.3

0(3

).

Cla

ss a

ctio

n s

uit

s

allo

wed

. Sc

hoja

n

v. P

apa

Joh

n’s

Inte

rn. I

nc.

, 34

F. Su

pp

. 3d

120

6

(M.D

. Fla

. 201

4).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

28

GE

OR

GIA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

4%.

Mfg

. eq

uip

. ex

emp

tio

n in

clu

des

M&

E

nec

essa

ry a

nd

inte

gral

to

th

e m

fg. o

f TP

P,

ind

ust

rial

mat

eria

ls, o

r p

acki

ng

sup

plie

s.

GC

A §

48

-8-3

.2(b

). T

his

ex

emp

tio

n

cove

rs t

he

enti

re f

acili

ty (

inte

grat

ed p

lan

t

theo

ry).

Mfg

. in

pu

ts e

xem

pti

on

incl

ud

es c

on

sum

-

able

su

pp

lies,

ind

ust

rial

mat

eria

ls w

hic

h

bec

om

e p

art

of

the

com

po

nen

t p

rod

uct

,

sup

plie

s fo

r p

acki

ng

TP

P, an

d e

ner

gy n

ec-

essa

ry a

nd

inte

gral

to

mfg

. TP

P. G

CA

§§

48

-8-3

.2(a

)(3

), (

a)(

5),

(b),

(c)

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

GC

A §

48

-8-2

(31

)(A

); G

CR

&R

56

0-1

2-2

-.24

(2)

(a)(

1).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le (

on

ly

dig

ital

bro

adca

st e

qu

ip. e

xem

pt)

. GC

R&

R

56

0-1

2-2

-.17

(3),

(4

)(a

). S

ervi

ces

are

no

t

tax

ed a

t co

nsu

mer

leve

l. G

CR

&R

56

0-1

2-

2-.1

7(5

)(a

).

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

GC

R&

R 5

60

-12

-2-.6

2; T

PP

use

d f

or

tran

s-

mis

sio

n a

nd

dis

trib

uti

on

is n

ot

exem

pt.

Geo

rgia

Pow

er C

o. v

. Ma

cGin

nit

ie, N

o.

2015

-1 (

Ga.

Tax

Tri

b. J

an. 5

, 201

5). E

lect

ric-

ity

and

gas

is t

axed

at

the

con

sum

er le

vel.

GC

A §

48-8

-2(3

1)(

A);

GC

R&

R 5

60-1

2-2

-.32

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

GC

A

§ 4

8-8

-38

; By

rulin

g, a

llow

s

selle

rs a

t le

ast

120

day

s to

ob

tain

val

id c

erts

. on

au

dit

.

L.R

. SU

T -2

01

3-0

6-1

3-0

3.

SSU

TA/M

TC

ex

emp

tio

n

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s p

urs

uan

t

to a

sta

tute

, bu

t D

OR

has

sugg

este

d t

hat

th

e d

efin

itio

n

of “

goo

d-fa

ith

” in

GC

A §

48-

8-38

(b)

req

uir

es a

sel

ler

to

veri

fy e

xem

pti

on

nu

mb

ers.

Ven

do

r co

mp

.: 3%

of

tax

du

e o

n fi

rst

$3,0

00 o

f to

tal

sale

s an

d u

se t

axes

rep

ort

-

ed, a

nd

0.5

% o

f p

ort

ion

exce

edin

g $3

,000

. GC

A §

48

-8-5

0(b

).

Dir

ect

pay

lim

ited

to

cer

tain

mfg

. mak

ing

at le

ast

$2

mill

ion

in T

PP

pu

rch

ases

per

year

. GC

R&

R 5

60

-12

-1-.1

6.

207

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

46,8

00).

Cen

tral

ad

min

. of

the

loca

l tax

es. G

CA

§

48

-8-1

10

.1(c

). T

he

tax

bas

e fo

r lo

cals

can

dif

fers

fro

m t

he

stat

e

tax

bas

e.

Web

site

incl

ud

es c

ur-

ren

t an

d h

isto

rica

l tax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

ps:

//dor.g

eorg

ia.

gov/

docu

men

ts/s

ale

s-

tax-

rate

-ch

art

.

Full

SSU

TA m

emb

er,

bu

t o

ut

of

com

plia

nce

.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

L.R

.

SUT 2

01

4-0

5 (

6/1

4).

No

tax

imp

ose

d

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. I

d.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. GC

A §

§ 4

8-8

-71

,

-77

.1.

Selle

rs o

win

g $6

0,00

0

or

mo

re in

th

e p

rio

r

year

, ex

clu

din

g lo

cal

sale

s ta

xes

, mu

st m

ake

adva

nce

pay

men

ts o

f

50%

eac

h m

on

th b

y

the

20th

day

of

per

iod

.

GC

A §

48

-8-4

9(b

)(2

).

Cre

dit

no

t lim

ited

to

use

tax

. GC

A §

48

-8-4

2.

Ho

wev

er,

tax

cre

dit

limit

ed s

tate

to

sta

te

and

loca

l to

loca

l.

GC

R&

R 5

60

-12

-1-

.32

(5).

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. GC

A §

48

-8-4

2; G

CR

&R

56

0-

12

-1-.3

2.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

GC

A §

§ 4

8-8

-45

(c),

(d).

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

the

stat

e w

/ou

t

goin

g th

rou

gh t

he

selle

r. Fi

le form

s

ST-1

2 (

7/1

6)

an

d

ST-1

2B

(1

/12

).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

GC

A §

23

-

3-1

21

(e).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Geo

rgia

Pow

er

Co.

v. C

azi

er, 7

40

S.E.

2d 4

58 (

Ga.

Ap

p. 2

013)

; GC

A §

48

-2-3

5(c

)(1

)(D

).

Rec

entl

y en

act-

ed le

gisl

atio

n

(201

8 G

A H

B

811)

wo

uld

allo

w

con

tin

gen

t fe

e au

-

dit

ing.

No

cu

rren

t

pri

vate

-co

ntr

act

aud

itin

g. G

CA

§

48

-2-6

(e).

DO

R is

adm

inis

-

trat

ivel

y

den

yin

g

dir

ect

pay

ho

lder

s

inte

r-

est

on

refu

nd

s.

29

HA

WA

II

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

6%.

No

mfg

. eq

uip

. ex

emp

tio

n. H

RS

§ 2

37

-

13

(2)(

A).

A w

ho

lesa

le 0

.5%

tax

imp

ose

d o

n m

ate-

rial

s so

ld t

o a

lice

nse

d m

anu

fact

ure

r an

d

inco

rpo

rate

d in

to fi

nis

hed

TP

P f

or

sale

.

HR

S § 2

37

-4(a

)(2

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. W

ired

and

wir

eles

s se

rvic

es a

re t

axed

at

the

con

sum

er le

vel.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

HR

S § 2

37

-13

(6).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. Sal

es o

f

elec

tric

ity

and

gas

are

tax

ed, p

ub

lic s

er-

vice

co

mp

any

tax

. HR

S § 2

39

-5(a

).

“Go

od

fai

th”

req

. no

t im

-

po

sed

on

ex

emp

tio

n c

erts

.

bu

t im

po

sed

on

res

ale

cert

s.

HA

R §

18

-23

7-1

3-0

2(d

)

(4);

no

ru

le a

llow

ing

selle

rs

at le

ast

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it.

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s. H

AR

18-

237-

30(g

).

No

ven

do

r co

mp

.

No

bro

ad-b

ased

dir

ect

pay

pro

visi

on

.

4 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

340,

075)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. H

RS

§ 4

6-

16

.8(a

). A

ll th

e lo

cal

hav

e th

e sa

me

tax

bas

e as

th

e st

ate.

Id.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e n

ot

his

tori

cal t

ax

rate

s o

r a

bo

un

dar

y

dat

abas

e. h

ttp:/

/ta

x.

haw

aii

.gov

/gen

info

/

get/

.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

as T

PP.

HR

S §

23

7-1

3(2

).

Tax

imp

ose

d o

n a

per

-

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e vi

a ge

ner

al

exci

se t

ax. H

RS

§ 2

37

-

13

(9).

Lim

ited

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

T

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. H

RS

§§ 2

37

–22

,

23

8–3

(i).

Fu

ll cr

edit

for

oth

er s

tate

s’ s

tate

and

loca

l tax

es. H

RS

§§

23

7–2

2, 2

38

–3(i

).

No

acc

el. l

ease

pay

-

men

ts.

Cre

dit

s o

ther

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

.

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. H

RS

§§

23

7-3

(b),

24

1-4

(b)(

3).

No

wri

tten

pro

-

cess

allo

win

g p

ur-

chas

ers

to o

bta

in

refu

nd

s fr

om

th

e

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

ax

clai

ms.

Cla

ss a

ctio

n s

uit

s

allo

wed

.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

HR

S § 2

31

-13

(b)

(3).

Offi

cers

’

SSN

s an

d

ho

me

add

ress

-

es a

re

req

uir

ed

on

reg

-

istr

atio

n

form

,

and

the

last

4 SS

N

dig

its

are

req

uir

ed

on

retu

rns.

Form

BB

-1

(rev

.

20

17

),

Form

G-4

5

(rev

.

20

16

).

30

IDA

HO

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

2%.

Ex

emp

ts T

PP

pri

mar

ily

and

dir

ectl

y

use

d o

r co

nsu

med

in

or

du

rin

g a

mfg

.,

pro

cess

ing,

min

ing,

or

fab

rica

tin

g

op

erat

ion

. IC

§ 6

3-3

62

2D

(a),

(b);

IDA

PA

35

.01

.02

.07

9.0

3.

Mfg

. in

pu

ts li

mit

ed t

o b

usi

nes

s se

gmen

t

pri

mar

ily e

nga

ged

in p

rod

uct

ion

of T

PP

that

en

ters

in

to a

nd

bec

om

es a

n i

ngr

e-

die

nt

or

com

po

nen

t p

art

of T

PP

man

u-

fact

ure

d, p

roce

ssed

, min

ed, p

rod

uce

d

or

fab

rica

ted

fo

r sa

le. I

C §

63

-36

22

D(a

),

(b)

; ID

APA

35

.01

.02

.07

9.0

3.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. ID

APA

35

.01

.02

.03

1.0

4. S

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

IDA

PA 3

5.0

1.0

2.0

31

.03

.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e n

ot

tax

ed a

t co

nsu

mer

leve

l. IC

§ 6

3-3

61

2(2

);

IDA

PA 3

5.0

1.0

2.0

11

.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. ID

APA

35

.01

.02

.07

9.2

0(c

). S

ervi

ces

no

t ta

xab

le.

IC §

63

-36

12

(1);

IDA

PA 3

5.0

1.0

2.0

11

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

IC

§

63

-36

22

; no

ru

le a

llow

ing

selle

rs a

t le

ast

120

day

s to

ob

tain

val

id c

erts

. on

au

dit

,

bu

t fl

exib

le o

n a

ud

it. I

DA

PA

35

.01

.02

.12

8(0

9).

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

ID r

etai

lers

pu

rch

asin

g fo

r

resa

le m

ust

pro

vid

e an

ID

per

mit

nu

mb

er.

No

ven

do

r co

mp

.

ID h

as a

bro

ad-b

ased

dir

ect

pay

pro

visi

on

. ID

APA

35

.01

.02

.11

2.0

1.

13 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

120,

583)

.

Cen

tral

ad

min

. of

the

loca

l tax

es, e

xce

pt

a

tou

rism

tax

. Lo

cals

hav

e th

e sa

me

tax

bas

e as

th

e st

ate

w/

limit

ed e

xce

pti

on

s.

htt

ps:

//ta

x.id

ah

o.

gov/

i-1

11

7.c

fm.

Web

site

has

cu

r-

ren

t ta

x r

ates

an

d a

bo

un

dar

y d

atab

ase,

bu

t it

do

es n

ot

hav

e

his

tori

cal l

oca

l sal

es

tax

rat

es. h

ttps:

//ta

x.

ida

ho.

gov/

i-1

02

3.

cfm

#su

b3

.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

bec

ause

it

is c

on

sid

ered

TP

P, w

/

exce

pti

on

s. I

C §

63

-

36

16

(b).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

rew

ritt

en

com

pu

ter

soft

war

e. I

C

§ 6

3-3

61

6(b

).

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

IST

C

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. IC

§ 6

3-3

62

1(j

).

Full

cred

it f

or

oth

er

stat

es’ l

oca

l an

d s

ales

tax

es. h

ttps:

//ta

x.id

a-

ho.

gov/

i-1

01

8.c

fm.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. Sta

te

an

d L

oca

l Advi

sory

Cou

nci

l Su

rvey

: Cre

dit

for

Tax

Paid

Lea

ses

(4/1

1).

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. I

DA

PA

35

.01

.02

.06

3(0

2).

No

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s to

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. ID

APA

35

.01

.02

.11

7(0

2).

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es.

Cla

ss a

ctio

n s

uit

s

allo

wed

. See

Wa

re

v. I

da

ho S

tate

Ta

x

Com

m’n

, 98

Idah

o

477,

567

P2d

423

,

(197

7).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

31

ILLI

NO

IS

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

7%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

dir

ectl

y u

sed

pri

mar

ily in

mfg

. 35

ILC

S

§§ 1

20

/2-5

(14

), 1

05

/3-5

(18

), 1

10

/2,

11

5/2

(e).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

inp

uts

that

go

into

an

d f

orm

a p

art

of T

PP

so

ld

at r

etai

l. 3

5 I

LCS

§ 1

20

/1; 8

6 I

AC

§

13

0.2

10

(b),

13

0.2

15

(b).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

35

ILC

S

§ 6

30

/3.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e n

ot

tax

ed a

t co

nsu

mer

leve

l. Il

l. D

ept.

of

Rev

.

Gen

era

l In

form

ati

on

Let

ter

No.

ST 0

4-

01

93

-GIL

(1

1/0

1/2

00

4).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. 35

ILC

S

§ 1

20

/2-4

5. S

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

86

IA

C §

13

0.1

01

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

fo

r

serv

ices

, no

t TP

P. 8

6 I

AC

§

13

0.1

40

5. S

elle

rs o

nly

hav

e

60 d

ays

to o

bta

in v

alid

cer

ts.

on

au

dit

.

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d. H

ow

ever

, res

ale

cert

s. m

ust

co

nta

in p

urc

has

-

er’s

IL

regi

stra

tio

n n

um

ber

.

Selle

rs m

ust

cap

ture

/ver

ify

exem

pti

on

acc

ou

nt

nu

m-

ber

s. R

ock

Isl

an

d T

oba

cco &

Spec

ialt

y C

o. v

. Illin

ois

Dep

’t

of

Rev

enu

e, 4

09 N

.E.2

d 1

36

(3rd

Dis

t. 19

80).

Ven

do

r co

mp

.: 1.

75%

per

cale

nd

ar y

ear. 3

5 I

LCS

§§ 1

05

/9, 1

10

/9, 1

15

/9,

12

0/3

.

IL h

as a

bro

ad-b

ased

dir

ect

pay

pro

visi

on

, bu

t th

e ap

pli-

cati

on

pro

cess

is d

etai

led

.

86

IA

C §

13

0.2

52

0.

1,63

9 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

7,82

8).

Cen

tral

ad

min

. of

loca

l

tax

es. E

xcl

ud

ing

Co

ok

Co

un

ty, l

oca

ls g

ener

-

ally

use

th

e st

ate’

s ta

x

bas

e. C

oo

k C

ou

nty

also

has

on

ero

us

leas

e

tran

sact

ion

tax

.

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e b

ut

do

es

no

t h

ave

his

tori

cal

tax

rat

es. h

ttp:/

/ww

w.

reve

nu

e.st

ate

.il.u

s/

Pu

bli

cati

on

s/Sa

les.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

ST 1

5-

01

04

(G

IL)

(10

/15

).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. S

T

16

-00

33

(G

IL).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

err

on

eou

s

DO

R g

uid

ance

. 20

ILC

S

§ 2

52

0.

Selle

rs o

win

g >

$20,

000

per

mo

nth

mu

st m

ake

adva

nce

pay

men

ts f

ou

r ti

mes

per

mo

nth

. 35

ILC

S §

12

0/3

.

Cre

dit

lim

ited

to

use

tax

. 35

ILC

S §

10

5/3

-55

(d).

Do

es

no

t p

rovi

de

a fu

ll

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

.

Ph

ilco

Corp

. v. D

ep’t o

f

Rev

enu

e, 4

0 Il

l.2d

312

(196

8).

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Un

clea

r if

IL

cred

its

oth

er s

tate

s’ t

ax o

n

acce

l. le

ase

pay

men

ts.

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. 8

6 I

AC

§

13

0.1

96

0(d

); 3

5 I

LCS

§§ 1

20

/6d(a

), (

b).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e

w/o

ut

goin

g

thro

ugh

th

e se

ll-

er. S

T 1

3-0

02

9

(GIL

) (6

/13

).

Fals

e cl

aim

s ac

t

allo

ws

sale

s ta

x

clai

ms.

74

0 I

LCS

§ 1

75

/3(c

).

Cla

ss a

ctio

ns

suit

s al

low

ed.

Won

g v. W

hole

Foods

Mkt.

Gro

up, I

nc.

, 15

C 8

48, 2

015

WL

1085

2508

(N

.D.

Ill J

un

e 15

, 201

5)

(set

tled

201

5).

DO

R d

oes

no

t en

gage

in

pri

vate

-co

ntr

act

aud

itin

g o

r

con

tin

gen

t fe

e

aud

itin

g.

Loca

l ju

ris-

dic

tio

ns

is-

sue

w/s

ales

v. u

se t

ax

litig

atio

n

on

dis

trib

u-

tio

n o

f th

e

tax

un

fair

ly

forc

ing

som

e

selle

rs in

to

litig

atio

n,

see

Cit

y of

Ch

ica

go

an

d v

illa

ge

of

Skokie

v. C

ity

of

Ka

nka

-

kee,

et

al.

(cas

e 11

CH

294

75

(10/

2015

)).

32

IND

IAN

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

2%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

dir

ectl

y u

sed

in m

fg. I

C §

6-2

.5-5

-3(b

).

Mfg

. in

pu

ts e

xem

pti

on

incl

ud

es T

PP

inco

rpo

rate

d a

s a

mat

eria

l par

t, as

wel

l as

TP

P c

on

sum

ed in

th

e d

irec

t p

rod

uct

ion

of

oth

er T

PP.

IC

§§ 6

-2.5

-5-6

, -5

.1; 4

5 I

AC

2.2

-5-1

4(d

); 2

.2-5

-12

(a).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t;

serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. IC

§

6-2

.5-4

-6, 6

-2.5

-5-1

3.

Cab

le e

qu

ip.:

exem

pt.

In

form

ati

on

Bu

llet

in #

17

(9

/09

). Se

rvic

es a

re t

axed

at c

on

sum

er le

vel.

IC §

6-2

.5-4

-11

; 45

IA

C

2.2

-4-3

0.

Elec

tric

eq

uip

.: ta

xab

le. I

C §

6-2

.5-5

-3(c

).

Gas

eq

uip

.: ex

emp

t. IC

§ 6

-2.5

-5-3

(b);

Elec

tric

ity

and

gas

so

ld t

o c

on

sum

ers

is

tax

ed. I

C §

§ 6

-2.5

-1-2

7, 6

-2.5

-4-5

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

IC

§

6-2

.5-8

-8(a

); s

elle

rs a

llow

ed

120

day

s to

ob

tain

val

id

cert

s. o

n a

ud

it. IC

§ 6

-2.5

-

8-8

(e).

SSU

TA e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: 0.

73%

fo

r

selle

rs <

$60

,000

in t

ax

liab

ility

in p

rio

r ye

ar, 0

.53%

for

selle

rs w

ith

tax

liab

il-

ity

bet

wee

n $

60,0

00 t

o

$600

,000

, an

d 0

.26%

fo

r

selle

rs >

$60

0,00

0. I

C §

6-2

.5-6

-10

(b).

Dir

ect

pay

allo

wed

fo

r m

fg.,

reta

ilin

g, a

nd

wh

ole

salin

g. I

C

§ 6

-2.5

-8-9

; 45

IA

C 2

.2-8

-15

.

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s. h

ttp:/

/ww

w.

in.g

ov/d

or/

41

47

.htm

.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

un

der

th

e

cate

gori

zati

on

of

“ret

ail t

ran

sact

ion

s.” I

C

§§ 6

-2.5

-2-1

, 6-2

.5-4

-

16

.4(b

).

S.B

. 257

, sig

ned

3/23

/18,

cla

rifi

ed

that

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e is

no

t ta

xab

le. S

ale

s Ta

x

Bu

llet

in 8

(1

2/1

6).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. IC

§ 6

-2.5

-11

-11

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. IC

§ 6

-2.5

-3-5

. Do

es

no

t p

rovi

de

full

cred

it

for

oth

er s

tate

s’ lo

cal

tax

es.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

Hom

e D

epot

U.S

.A.,

Inc.

v. I

ndia

na

Dep

’t o

f

Rev

., C

ase

No

. 49T

10-

0703

-TA

-11

(Ju

ly 2

8,

2008

); IC

§ 6

-2.5

-6-9

.

Pu

rch

aser

s m

ay

ob

tain

ref

un

ds

fro

m t

he

stat

e

w/o

ut

goin

g

thro

ugh

th

e

selle

r. IC

§ 6

-2.5

-

6-1

3.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es. I

C §

5-1

1-

5.5

-2(a

)(1

).

Cla

ss a

ctio

n

suit

s n

ot

allo

wed

un

less

a p

erso

n

has

pre

vio

usl

y

file

d a

val

id

refu

nd

cla

im.

IC §

§ 6

-8.1

-9-7

,

6-8

.1-9

-1(a

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

Gen

eral

ly,

SSN

an

d

ho

me

add

ress

es

are

re-

qu

ired

fo

r

regi

stra

-

tio

ns

and

retu

rns.

E-re

gist

ra-

tio

n is

als

o

req

uir

ed.

htt

p:/

/

ww

w.

in.g

ov/

dor/

43

24

.

htm

.

33

IOW

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

7%.

Mfg

. eq

uip

. ex

emp

tio

n in

clu

des

co

m-

pu

ters

, mac

hin

ery,

equ

ip.,

rep

lace

men

t

par

ts, a

nd

su

pp

lies,

if t

he

pro

per

ty is

dir

ectl

y an

d p

rim

arily

use

d in

mfg

. IC

§

42

3.3

(47

)(a

)(1

).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P t

hat

bec

om

es a

n in

tegr

al p

art

of

oth

er T

PP

sold

at

reta

il. I

C §

§ 4

23

.3(5

1),

42

3.6

(3).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. IC

§

42

3.3

(47

A);

IAC

r.7

01

-22

4.9

. Ser

vice

s ar

e

tax

ed a

t co

nsu

mer

leve

l. IC

§§ 4

23

.2(2

),

(9);

IAC

r.7

01

--22

4.3

(1).

Cab

le e

qu

ip.:

exem

pt.

IC §

42

3.3

(47

A);

IAC

r.7

01

--22

4.9

. Ser

vice

s ar

e ta

xed

at

con

sum

er le

vel.

IC. §

§ 4

23

.2(2

), 4

23

.2(6

)

(a).

Elec

tric

an

d g

as e

qu

ip.:

Lim

ited

ex

emp

-

tio

n. I

C §

42

3.3

(54

). E

lect

rici

ty a

nd

gas

is t

axed

fo

r co

mm

erci

al u

sers

. IC

§§

42

3.3

(2),

(8

4).

No

“go

od

fai

th”

req

. im

-

po

sed

wh

en a

ccep

tin

g

cert

s. IC

§ 4

23

.45

(4);

IAC

r.70

1-1

5.3

(1)(

b);

sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. IC

§

42

3.5

1(3

)(b).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ith

at

leas

t $4

,000

of

tax

liab

ility

per

hal

f-mo

nth

.

IC §

42

3.3

6(9

).

194

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

15,7

03).

Cen

tral

ad

min

. of

the

loca

l tax

es. I

C §

42

3B

.6; I

AC

r.7

01

-

10

7.1

5. L

oca

ls u

se t

he

sam

e ta

x b

ase

as t

he

stat

e. I

C §

42

3B

.5; I

AC

r.70

1-1

07

.9.

Web

site

has

cu

r-

ren

t ta

x r

ates

an

d a

bo

un

dar

y d

atab

ase.

It a

lso

has

his

tori

cal

stat

es t

ax r

ates

, bu

t

no

t lo

cal t

ax r

ates

.

htt

ps:

//ta

x.io

wa

.gov

/

iow

a-ta

x-ra

te-h

isto

-

ry#

sale

s.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

IC

§

42

3.3

(67

).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Rev

enu

e Po

licy

Let

ter

No.

12

30

00

2 (

1/1

2).

Tax

liab

ility

rel

ief

limit

-

ed t

o S

SUTA

req

s. I

C §

42

3.5

2.

Ad

van

ce p

aym

ents

mu

st b

e m

ade

dep

end

-

ing

on

filin

g fr

equ

ency

(mo

re t

han

$60

k p

er

year

req

uir

es 2

mo

nth

ly

pay

men

ts).

IC

§ 4

23

.31

.

Cre

dit

lim

ited

to

use

tax

. IC

§ 4

23

.22

; IA

C

r.70

1-2

23

.2(4

23

). F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

. IC

§ 4

23

.22

; IA

C r

.70

1-

30

.7(4

23

).

Stat

e ac

cele

rate

s ce

r-

tain

leas

e p

aym

ents

. No

cred

it f

or

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

-

men

ts. I

AC

r.7

01

-30

.7.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

IC §

42

3.2

1; L

ette

r of

Fin

din

gs, D

ocu

men

t

Ref

eren

ce: 0

23

00

05

1.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. IA

84

3

Cla

im for

Ref

un

d

(7/1

5).

Fals

e cl

aim

s

act

excl

ud

es

tax

cla

ims.

IC

§

68

5.2

(5).

Cla

ss a

ctio

ns

suit

s n

ot

allo

wed

,

refu

nd

cla

im m

ust

be

file

d w

ith

sta

te.

Ba

ss v

. J.C

. Pen

ney

Co.

, In

c., 8

80

N.W

.2d

751

(Io

wa

2016

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

34

KA

NSA

S

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

1%.

Mfg

. eq

uip

. ex

emp

tio

n in

clu

des

mo

st

M&

E th

at is

an

inte

gral

or

esse

nti

al p

art

of

a p

rod

uct

ion

op

erat

ion

by

a m

fg. f

acili

ty.

KSA

§§ 7

9-3

60

6(m

), (

n),

(kk)(

1).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

TP

P c

on

-

sum

ed in

pro

du

ctio

n, o

r th

at b

eco

mes

an

ingr

edie

nt

or

com

po

nen

t o

f a

man

ufa

c-

ture

d it

em. K

SA §

§ 7

9-3

60

6(m

), (

n).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. K

AR

92

-20

-20

, -2

1. S

ervi

ces

are

tax

ed a

t co

n-

sum

er le

vel.

KSA

§ 7

9-3

60

3(b

).

Cab

le e

qu

ip.:

tax

able

. K

SA §

79

-36

03

(k).

Serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. Id

.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

KSA

§

79

-36

06

(kk)(

D).

Elec

tric

ity

and

gas

so

ld

to c

on

sum

ers

is t

axed

, w/e

xem

pti

on

s fo

r

no

nco

mm

erci

al a

nd

agr

icu

ltu

ral u

se, a

nd

elec

tric

ity

con

sum

ed in

pro

du

ctio

n. K

SA

§§ 7

9-3

60

6(c

), (

n).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

KSA

§ 7

9-3

65

1; s

elle

rs a

llow

ed

120

day

s to

ob

tain

val

id

cert

s. o

n a

ud

it. K

SA §

79

-

36

09

(a)(

2).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs m

ust

cap

ture

/ver

ify

exem

pti

on

acc

ou

nt

nu

m-

ber

s. K

SA §

79

-36

92

et

seq.

No

ven

do

r co

mp

.

KS

has

a b

road

-bas

ed d

irec

t

pay

pro

visi

on

. KSA

§ 7

9-

36

19

(b).

641

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

ios

of

4,45

1).

Cen

tral

ad

min

. of

the

loca

l tax

es. K

SA §

§

12

-18

9, 1

2-1

98

(a),

(b);

KA

R 9

2-2

1-6

. Lo

-

cals

can

var

y fr

om

th

e

stat

e’s

tax

bas

e. K

SA §

12

-18

9a

(a)-

(c);

KA

R

92

-21

-6.

Web

site

on

ly h

as

curr

ent

tax

rat

es g

oin

g

bac

k to

201

6. M

ust

con

tact

DO

R f

or

oth

er

tax

rat

es. W

ebsi

te h

as

bo

un

dar

y d

atab

ase.

htt

p:/

/ww

w.k

srev

-

enu

e.org

/sa

lesr

at-

ech

an

ges.

htm

l.; K

SA §

79

-36

67

.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n d

ig-

ital

pro

du

cts.

Ka

nsa

s

Info

rma

tion

Gu

ide

ED

U-7

1R

(III

)(e)

.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. I

d.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. KSA

§ 7

9-3

66

7.

Selle

rs >

$40

K p

er y

ear

mu

st m

ake

adva

nce

pay

men

ts b

ased

on

firs

t

15 d

ays

of

each

mo

nth

w/p

rio

r m

on

th’s

ret

urn

du

e d

ate.

KSA

§ 7

9-

36

07

(a).

Cre

dit

lim

ited

to

use

tax

. K

SA §

79

-37

05

.

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. KA

R

92

-19

-55

b(b

)(5

).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

KSA

§ 7

9-3

67

4(a

);

KA

R 9

2-1

9-3

b(c

),

-3b(d

)(1

).

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

the

stat

e w

/ou

t

goin

g th

rou

gh t

he

selle

r. F

orm

ST-

21

(2/1

5)

Part

E.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

KSA

§ 7

5-

75

03

(d).

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

35

KE

NT

UC

KY

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

4%.

On

ly c

ove

rs m

ach

iner

y (n

ot

rep

lace

men

t

mac

hin

ery)

fo

r n

ew a

nd

ex

pan

ded

in-

du

stry

use

d d

irec

tly

in m

fg. R

epla

cem

ent

mac

hin

ery

no

t ex

emp

t w

/lim

ited

ex

cep

-

tio

ns.

KR

S §§ 1

39

.01

0(1

5),

13

9.4

80

(10

);

10

3 K

AR

30

:12

0, §

2.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

raw

mat

eria

ls, s

up

plie

s, a

nd

ind

ust

rial

to

ols

wh

ich

en

ter

into

an

d b

eco

me

an in

gred

i-

ent

or

com

po

nen

t p

art

of

the

man

ufa

c-

ture

d p

rod

uct

. KR

S § 1

39

.47

0(1

0).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. K

RS

§

13

9.2

00

. Ser

vice

s ar

e ta

xed

at

con

sum

er

leve

l an

d a

lso

su

bje

ct t

o G

RT.

Id.

Cab

le e

qu

ip.:

tax

able

. K

RS

§ 1

39

.20

0.

Serv

ices

su

bje

ct t

o e

xci

se t

ax a

nd

MV

P

GR

T. K

RS

§ 1

36

.60

4, 1

36

.61

6.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. Ex

emp

-

tio

n li

mit

ed t

o m

fg. K

RS

§ 1

39

.48

0(3

).

Serv

ices

are

tax

ed. K

RS

§ 1

39

.20

0.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

KR

S § 1

39

.27

0(1

); se

llers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. K

RS

§

13

9.2

70

(3)(

a).

Allo

ws

use

of

SSU

TA c

erts

.

Lim

its

use

of

MT

C e

xem

p-

tio

n c

erts

. fo

r re

sale

. KR

S §

13

9.2

70

(1).

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s b

ut

mu

st

ob

tain

an

iden

tifi

cati

on

nu

mb

er.

Pro

vid

es li

mit

ed v

end

or

com

p.:

1.75

% <

$1,

000,

th

en

1.5%

of

the

rem

ain

der

on

each

ret

urn

($5

0 ca

p p

er

rep

ort

ing

per

iod

). K

RS

§

13

9.5

70

.

Dir

ect

pay

lim

ited

to

cer

tain

ind

ust

ries

an

d a

t le

ast

$10

mill

ion

of T

PP.

10

3 K

AR

31

:03

0.

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Th

ere

are

no

loca

l

tax

es a

nd

th

e st

ate

rate

has

no

t ch

ange

d

sin

ce 1

990.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n

“ret

ail s

ales

” o

f d

igit

al

pro

du

cts.

KR

S §

13

9.2

00

(1).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

. KR

S §

13

9.7

95

(6).

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

ited

to u

se t

ax. K

RS

§

13

9.5

10

(1).

Do

es n

ot

pro

vid

e cr

edit

for

oth

er s

tate

s’ lo

cal

tax

es. K

RS

§ 1

39

.51

0.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

KR

S § 1

39

.35

0.

No

wri

tten

pro

-

cess

allo

win

g p

ur-

chas

ers

to o

bta

in

refu

nd

s fr

om

th

e

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

KR

S § 1

34

.58

0.

No

fal

se c

laim

s

act.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. K

RS

§§ 1

34

.58

0(3

).

No

cu

rren

t co

n-

tin

gen

t fe

e an

d

pri

vate

-co

ntr

act

aud

itin

g.

36

LOU

ISIA

NA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

1%.

Mfg

. eq

uip

. is

tax

ed w

/red

uce

d r

ate

of

1-2%

; lim

ited

to

eq

uip

. pre

do

min

atel

y an

d

dir

ectl

y u

sed

in m

fg. o

f TP

P f

or

sale

. LSA

§§ 4

7:3

01

(3)(

i)(i

), (

13

)(k),

(2

8)(

a).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

eri-

als

for

furt

her

pro

cess

ing

into

art

icle

s o

f

TP

P f

or

sale

at

reta

il. L

SA §

47

:30

1(1

0)

(c)(

i)(a

a),

(1

8)(

d)(

i). T

PP

co

nsu

med

in

mfg

. pro

cess

is s

ub

ject

to

a s

tate

-leve

l tax

rate

of

3% (

tax

su

nse

ts o

n J

uly

1, 2

018)

.

Lim

ited

mfg

. ex

clu

sio

n w

/NA

ICS

cod

es

3211

-322

2 an

d 1

1331

0. L

SA §

47

:30

1(3

)

(k)(

i).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le.

Serv

ices

tax

ed a

t co

nsu

mer

leve

l. LS

A §

§

47

:30

1(1

4)(

i), 4

7:3

02

(C),

47

:33

1(C

); LA

Rev

. Bu

ll. N

o. 0

4-0

05

, 01

/21

/20

04

.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e

no

t ta

xed

at

con

sum

er le

vel.

LSA

§§

47

:30

5.1

6, 4

7:3

01

(29

)(x)

; Norm

an

d v

.

Cox

Com

mc’

ns

LA, L

LC, 1

67 S

o.3

d 1

56

(La.

Ct.

Ap

p. 5

Cir

. 201

4).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

w/r

e-

du

ced

sta

te m

ach

iner

y ra

te o

f 1%

. LSA

§

47

:30

1(3

)(i)

(i),

(i)

(ii)

. Co

mm

erci

al a

nd

ind

ust

rial

use

tax

ed. LS

A §

47

:30

5(D

)(1

).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

; no

rule

allo

win

g se

llers

at

leas

t

120

day

s to

ob

tain

val

id

cert

s. o

n a

ud

it.

MT

C a

nd

SSU

TA c

erts

. may

no

t b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: 0.

935%

of

the

tax

du

e (c

app

ed a

t

$1,5

00 p

er m

on

th).

LSA

§

47

:30

6(A

)(3

)(a

).

Dir

ect

pay

lim

ited

to

qu

ali-

fyin

g m

fg. w

ith

tax

able

pu

r-

chas

es o

r le

ases

of

at le

ast

$5M

ove

r th

e la

st 3

yea

rs,

LSA

§ 4

7:3

03

.1.

452

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

10,0

30).

Loca

l au

tho

riti

es

self

-ad

min

iste

r th

e ta

x-

es. L

SA §

47

:33

7.1

3.

Loca

l au

tho

riti

es

hav

e au

ton

om

y in

inte

rpre

tin

g w

hat

is

sub

ject

to

tax

sep

arat

e

fro

m t

he

stat

e. L

SA §

47

:33

8.5

4(A

)(1

).

Web

site

has

cu

rren

t

tax

rat

es, b

ut

no

t

his

tori

cal t

ax r

ates

no

r

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/ww

w.r

even

ue.

lou

isia

na

.gov

/Sa

le-

sTa

x/Sa

lesT

axR

ate

s.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

dig

ital

pro

du

cts

do

wn

load

ed a

nd

sav

ed

in L

A.

No

tax

imp

ose

d

on

per

son

mer

ely

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Lou

isia

na

PLR

05

-00

3

(3/0

5).

No

tax

liab

ility

rel

ief

for

selle

rs o

r p

urc

has

-

ers

rely

ing

on

DO

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

it-

ed t

o u

se t

ax. L

SA

§§ 4

7:3

03

(A)(

3),

47

:33

7.8

6.

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. L

SA §

47

:30

3(A

)

(3).

No

acc

el. l

ease

pay

-

men

ts. U

ncl

ear

if L

A

cred

its

agai

nst

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

LSA

§ 4

7:3

15

(B);

61

LAC

§ I

.43

69

(B).

Wh

ile s

tate

has

a

wri

tten

pro

cess

al-

low

ing

pu

rch

aser

s

to o

bta

in r

efu

nd

s

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r, lo

cals

may

no

t al

low

.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly

to t

axes

. LSA

§

46

:43

9.3

et

seq.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. C

lark

v. S

tate

, 30

So. 3

d

812

(La.

Ap

p. 1

st

Cir

. 200

9).

Co

nti

nge

nt

fee

aud

itin

g is

pro

hib

-

ited

. So

me

loca

ls

use

pri

vate

-co

n-

trac

t au

dit

ing.

Stat

e’s

tax

bas

e

is n

ot

un

ifo

rm,

cert

ain

exem

p-

tio

ns

do

no

t

app

ly t

o

the

ad-

dit

ion

-al

“cle

an”

pen

ny

tax

.

37

MA

INE

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

5%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs m

ach

iner

y

use

d d

irec

tly

and

pri

mar

ily t

o p

rod

uce

TP

P f

or

sale

, or

for

R&

D. M

RS

§ 1

76

0(3

1)

(A),

(3

2).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

inp

uts

th

at

bec

om

e an

ingr

edie

nt

or

com

po

nen

t p

art

of

or

are

con

sum

ed o

r d

estr

oye

d d

irec

tly

and

pri

mar

ily in

th

e p

rod

uct

ion

. MR

S §

17

60

(74

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

MR

S §

25

52

.

Cab

le e

qu

ip.:

tax

able

, w/

bro

adca

st s

ign

als

exem

pti

on

. MR

S § 1

76

0(3

1)(

A).

Ser

vice

s

tax

ed a

t th

e co

nsu

mer

leve

l. M

RS

§ 2

55

2.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

Serv

ices

tax

ed a

t th

e co

nsu

mer

leve

l, w

/lim

ited

exem

pti

on

fo

r re

sid

enti

al e

lect

rici

ty a

nd

gas.

MR

S §§ 1

76

0(9

-B),

(9

-C).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

un

der

cert

ain

cir

cum

stan

ces.

MR

S

Inst

ruct

ion

al B

ullet

in N

o.

36

(3)(

A);

no

ru

le a

llow

ing

selle

rs a

t le

ast

120

day

s to

ob

tain

val

id c

erts

. on

au

dit

,

bu

t fl

exib

le o

n a

ud

it.

Lim

ited

use

of

MT

C e

xem

p-

tio

n c

erts

. fo

r n

on

resi

den

t

reta

ilers

on

ly. 1

8 1

25

CM

R

30

1, §

5.

Selle

rs m

ust

cap

ture

/

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ho

en

gage

in m

fg.

and

uti

litie

s. 1

8 1

25

CM

R

§ 3

08

.

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s. h

ttp:/

/ww

w.

ma

ine.

gov/

reve

nu

e/

sale

suse

/Ref

eren

ce-

Gu

ide2

01

7.p

df.

No

t a

full

SSU

TA

mem

ber

.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

MR

S §§

17

52

(9-E

), (

17

), 1

81

1.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

MR

S

guid

ance

, bu

t p

enal

ty

relie

f m

ay b

e av

aila

ble

.

MR

S § 1

87

-B(7

).

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

ited

to

use

tax

. MR

S § 1

86

2.

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es.

Stat

e h

as a

ccel

. lea

se

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

MR

S § 1

81

1-A

.

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

the

stat

e. F

orm

AP

P-1

53

(1

1/1

7).

No

fal

se c

laim

s

act.

Cla

ss a

ctio

n s

uit

s

allo

wed

. Fli

ppo

v. L

.L. B

ean

, In

c.,

898

A.2

d 9

42 (

Me.

2006

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

38

MA

RY

LAN

D

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs T

PP

use

d

dir

ectl

y an

d p

red

om

inat

ely

at a

ny

stag

e o

f

pro

du

ctio

n in

mfg

. MC

A, T

ax-

Gen

. § 1

1-

21

0(b

); C

OM

AR

03

.06

.01

.32

-2.C

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P

pu

rch

ased

fo

r u

se a

s a

mat

eria

l or

par

t o

f

oth

er T

PP

pu

rch

ased

fo

r sa

le. M

CA

, Ta

x-

Gen

. § 1

1-1

01

(h)(

3)(

ii)(

2).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. C

O-

MA

R 0

3.0

6.0

1.0

1(B

)(2

). W

ired

ser

vice

s

are

no

t ta

xed

, bu

t w

irel

ess

serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. M

CA

, Ta

x-G

en.

§ 1

1-1

01

(m)(

4);

CO

MA

R 0

3.0

6.0

1.0

1

(B)(

2).

Cab

le e

qu

ip.:

tax

able

. M

CA

, Ta

x-G

en. §

11

-21

0(d

); T

V s

ub

scri

pti

on

ser

vice

s ar

e

no

t ta

xed

bu

t p

ay-p

er-v

iew

TV

is t

axed

at c

on

sum

er le

vel.

MC

A, T

ax-

Gen

. § 1

1-

10

1(m

).

Elec

tric

ity

and

gas

eq

uip

.: ex

emp

t. M

CA

,

Tax-

Gen

. § 1

1-1

01

(f)(

1)(

i)(i

i). S

ervi

ces

are

tax

ed a

t co

nsu

mer

leve

l, w

/ex

emp

tio

n

for

resi

den

tial

use

. MC

A, T

ax-

Gen

. §§ 1

1--

10

1(k

)(2

)(ii

i), -

20

7, -

21

0(a

)(2

).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

MC

A, T

ax-

Gen

. § 1

1-

40

8(b

); C

OM

AR

03

.06

.14

;

selle

rs a

llow

ed o

nly

60

day

s to

ob

tain

val

id c

erts

.

on

au

dit

. M

CA

, Ta

x-G

en. §

11

-40

8(b

)(4

)(ii

); C

OM

AR

03

.06

.01

.14

.F.

Lim

ited

use

of

MT

C a

nd

SSU

TA e

xem

pti

on

cer

ts.

Selle

rs m

ust

cap

ture

/

veri

fy e

xem

pti

on

ac-

cou

nt

nu

mb

ers.

CO

MA

R

03

.06

.01

.22

(D)(

2).

Ven

do

r co

mp

.: 1.

2% o

n t

he

firs

t $6

,000

an

d 0

.9%

on

th

e

rem

ain

der

(ca

pp

ed a

t $5

00

per

per

iod

). M

CA

, Ta

x-G

en.

§ 1

1-1

05

.

Dir

ect

pay

lim

ited

to

ven

-

do

rs w

ho

hav

e en

tere

d in

to

Effe

ctiv

e R

ate

Agr

eem

ents

wit

h t

he

Co

mp

tro

ller. M

CA

,

Tax-

Gen

. §§ 1

1-4

07

(a),

(c)

(2)(

i).

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

tax

rat

es, b

ut

no

t

his

tori

cal t

ax r

ates

(no

tax

rat

e ch

ange

last

5 y

ears

). h

ttp:/

/

taxe

s.m

ary

lan

dta

xes.

com

/Bu

sin

ess_

Taxe

s/

Bu

sin

ess_

Tax_

Types

/

Sale

s_a

nd_U

se_T

ax/

Tax_

Info

rma

tion

/

Tax_

Ra

tes/

.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Em

ail

from

Com

ptr

oller

.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

No

tax

liab

ility

rel

ief

for

selle

rs o

r p

urc

has

-

ers

rely

ing

on

DO

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

ited

to

use

tax

. MC

A, T

ax-

Gen

.

§ 1

1-2

21

(c).

Do

es n

ot

pro

vid

e cr

edit

fo

r o

ther

stat

es’ l

oca

l tax

es. M

CA

,

Tax-

Gen

. § 1

1-2

21

(c).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. t

ax p

aym

ents

.

CO

MA

R 0

3.0

6.0

1.2

8.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o

pri

vate

-lab

el c

red

-

it c

ard

s. C

OM

AR

03

.06

.03

.07

(A),

(B

).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e

w/o

ut

goin

g

thro

ugh

th

e se

ller

if t

he

refu

nd

is

$1,0

00+

. CO

MA

R

03

.06

.03

.05

B(2

).

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es. M

CA

, Gen

.

Pro

v. §

8-1

01

.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Hooks

v. C

om

p-

troller

, 265

Md

.

380

(197

2).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

39

MA

SSA

CH

USE

TT

S

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

Y

FAIR

TA

X

PA

YM

EN

T

AD

MIN

.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

8%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed

to m

ater

ials

, to

ols

, fu

el, a

nd

mac

hin

ery

use

d d

irec

tly

and

excl

usi

vely

in “

actu

al m

anu

fac-

ture

” o

f TP

P t

o b

e so

ld. M

GL

c.6

4H

, §§ 6

(s).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to m

ater

ials

, to

ols

, fu

el, a

nd

mac

hin

ery

use

d d

irec

tly

and

excl

usi

vely

in “

actu

al m

anu

fac-

ture

” o

f TP

P t

o b

e so

ld. M

GL

c.6

4H

, §§ 6

(r).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

x-

able

. Ser

vice

s ta

xed

at

con

sum

-

er le

vel.

83

0 C

MR

64

H.1

.6(4

).

Cab

le e

qu

ip.:

exem

pt.

MG

L

c.6

4H

, §§ 6

(r),

(s)

. Ser

vice

s n

ot

tax

ed a

t co

nsu

mer

leve

l. 8

30

CM

R 6

4H

.1.6

(6).

Elec

tric

an

d g

as e

qu

ip.:

ex-

emp

t. M

GL

c.6

4H

, §§ 6

(r),

(s)

.

Elec

tric

ity

and

gas

ser

vice

s

are

tax

ed, w

/so

me

exce

pti

on

s.

MG

L c.

64

H, §

1.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

83

0

CM

R 6

4H

.8.1

(4)(

b);

sel

lers

allo

wed

on

ly 6

0 d

ays

to

ob

tain

val

id c

erts

. on

au

dit

.

83

0 C

MR

64

H.8

.1(4

)(d).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay n

ot

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

.

Dir

ect

pay

allo

wed

to

pu

rch

aser

s w

ith

tax

able

pu

r-

chas

es >

$1M

per

yea

r. 8

30

CM

R 6

4H

.3.1

(4)(

a)(

2).

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

tax

rat

es.

htt

ps/

/ww

w.m

ass

.

gov/

serv

ice-

det

ail

s/

lea

rn-a

bou

t-m

ass

a-

chu

sett

s-ta

x-ra

tes.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Ma

s-

sach

use

tts

Tech

nic

al

Info

rma

tion

Rel

ease

TIR

05

-8, (

VII

)(B

)(8

)

(7/0

5).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. 8

30

CM

R 6

4H

.1.3

(3)(

a),

(14

); L

.R. 1

2-8

.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. MG

L c.

62

C, §

36

B.

No

ad

van

ce p

ay-

men

ts.

Cre

dit

lim

ited

to u

se t

ax. M

GL

c.6

4I, §

7(c

). F

ull

cred

it f

or

oth

er

stat

es’ s

tate

an

d

loca

l tax

es. M

ass

a-

chu

sett

s Te

chn

ica

l

Info

rma

tion

Re-

lea

se T

IR 0

3-1

(III

).

No

acc

el. l

ease

pay

men

ts. N

o

cred

it a

gain

st

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts. M

GL

c.6

4I,

§ 7

(c).

Bad

deb

t d

edu

c-

tio

n d

oes

no

t ap

-

ply

to

pri

vate

-lab

el

cred

it c

ard

s. M

GL

c.6

4H

, § 3

3.

Pu

rch

aser

s ca

n

ob

tain

ven

do

r’s

con

sen

t to

file

clai

m o

n it

s

beh

alf.

Tech

nic

al

Info

rma

tion

Rel

ease

15

-2.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

MG

L c.

12

, §5

B(d

).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

McG

on

agl

e v.

Th

e H

om

e D

epot

U.S

.A.,

Inc.

, 915

N.E

.2d

108

3

(Mas

s. A

pp

ls. C

t.

2009

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

Stat

e is

pu

shin

g fo

r

real

tim

e co

llect

ion

of

the

sale

s ta

x –

see

STR

I

Stu

dy

at:

htt

p:/

/cost

.org

/

globa

lass

ets/

cost

/sta

te-

tax-

reso

urc

es-p

df-pa

ges/

cost

-stu

die

s-a

rtic

les-

re-

port

s/da

ily-

sale

s-ta

x-co

l-

lect

ion

-sys

-

tem

-cou

ld-c

ost

-ma

ssa

chu

-

sett

s-bu

sin

esse

s-$

1.2

-bil

-

lion

.pdf.

40

MIC

HIG

AN

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

6%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs T

PP

use

d

or

con

sum

ed in

ind

ust

rial

pro

cess

ing.

“In

-

du

stri

al pro

cess

ing”

is

a b

roa

dly

defi

ned

.

MC

L §§ 2

05

.54

t(1

), (

7)(

a).

Mfg

. in

pu

ts e

xem

pti

on

bro

adly

co

vers

ingr

edie

nts

, co

mp

on

ents

, fu

els

and

en

ergy

use

d o

r co

nsu

med

in in

du

stri

al p

roce

ss-

ing.

MC

L § 2

05

.54

t(7

)(a

).

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

(10

%).

MC

L § 2

05

.54

v; M

AC

r.20

5.1

10

(5),

(6

). S

ervi

ces

are

tax

ed a

t

con

sum

er le

vel.

MC

L § 2

05

.93

b.

Cab

le e

qu

ip.:

tax

able

. M

CL

§ 2

05

.93

b(9

)

(m)(

vii)

. Ser

vice

s ar

e n

ot

tax

ed a

t co

n-

sum

er le

vel.

MC

L § 2

05

.93

a(5

)(s)

.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

MC

L §

20

5.5

4t.

Elec

tric

ity

and

gas

so

ld t

o c

on

-

sum

ers

are

tax

ed a

t a

red

uce

d r

ate

of

4%.

MC

L § 2

05

.51

a(q

); M

AC

r.2

05

.11

5(1

).

No

“go

od

fai

th”

req

. at

sale

wh

en a

ccep

tin

g ce

rts.

MC

L § 2

05

.62

; sel

lers

allo

wed

120

day

s o

n a

ud

it

to o

bta

in v

alid

cer

ts. M

CL

§

20

5.6

2(7

).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs a

re n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s, b

ut

for

resa

le c

laim

s, t

he

selle

r

mu

st k

eep

a r

eco

rd o

f th

e

pu

rch

aser

’s li

cen

se n

um

ber

(if

the

pu

rch

aser

has

on

e).

MC

L § 2

05

.68

(1).

Ven

do

r co

mp

.: 0.

5% o

f th

e

tax

du

e m

on

thly

at

a ra

te o

f

4% (

cap

ped

at

$20,

000

per

mo

nth

).

MI

has

a b

road

-bas

ed d

irec

t

pay

pro

visi

on

. § 2

05

.98

,

Mic

hig

an

Rev

enu

e A

dm

in-

istr

ati

ve B

ullet

in 2

00

0-3

(6/0

0).

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

had

cu

rren

t

tax

rat

es a

nd

his

tori

-

cal t

ax r

ates

. htt

ps:

//

ww

w.m

ich

iga

n.g

ov/

docu

men

ts/t

rea

sury

/

Sale

sUse

TaxR

e-

port

20

12

_43

25

38

_7.

pdf.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

SSU

TA

Taxa

bil

ity

Ma

trix

.

No

tax

imp

ose

d o

n a

per

son

mer

ely

acce

ss-

ing

pre

-wri

tten

co

m-

pu

ter

soft

war

e. M

CL

§

20

5.5

1a

(o);

Au

to-O

wn

-

ers

Ins.

Co.

v. D

ep’t o

f

Trea

s., 8

80 N

.W.2

d 3

37

(Mic

h. A

pp

. 201

5).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

wri

tten

guid

ance

as

pro

vid

-

ed b

y R

AB

201

6-20

.

Mic

hig

an

SSU

TA

Cer

t. of

Com

pli

an

ce,

08

/01

/20

15

.

Selle

rs m

ust

mak

e m

ul-

tip

le a

dva

nce

pay

men

ts.

MC

L § 2

05

.56

(2)(

b).

Cre

dit

no

t lim

ited

to u

se t

ax. M

CL

§

20

5.9

4(1

)(e)

. Fu

ll cr

ed-

it f

or

oth

er s

tate

s’ s

tate

and

loca

l tax

es. M

CL

§

20

5.9

4(1

)(e)

.

No

acc

eler

ated

leas

e

pay

men

ts. C

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. M

CL

§

20

5.9

4(1

)(e)

.

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. M

CL

§

20

5.5

4i(

b)(

iii)

.

Pu

rch

aser

s re

-

qu

ired

to

ob

tain

refu

nd

s fr

om

the

selle

r. M

CL

§

20

5.2

7a

.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly

to t

axes

. MC

L §

40

0.6

01

et

seq.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

41

MIN

NE

SOTA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

7%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs c

apit

al

equ

ip. u

sed

in M

N e

ssen

tial

to

th

e in

du

s-

tria

l pro

cess

. MS

§ 2

97

A.6

8(5

).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

mat

eria

ls

(in

clu

des

uti

litie

s) c

on

sum

ed in

“in

du

stri

-

al p

rod

uct

ion

,” w

hic

h is

bro

adly

defi

ned

.

MS

§ 2

97

A.6

8(2

).

Wir

ed a

nd

Wir

eles

s eq

uip

.: ex

emp

t. M

S

§ 2

97

A.6

8, S

ubd. 3

5a

. Bo

th s

ervi

ces

are

tax

ed a

t th

e co

nsu

mer

leve

l. M

S §§

29

7A

.61

, su

bd. 3

(i),

29

7A

.66

9.

Cab

le e

qu

ip.:

exem

pt.

MS

§ 2

97

A.6

8,

subd. 3

5a

. Cab

le s

ervi

ces

are

tax

ed a

t a

con

sum

er le

vel.

MS

§ 2

97

A.6

1, s

ubd. 3

(i).

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

MS

§

29

7A

.68

, su

bd. 5

(a).

Bo

th p

rod

uct

s/se

r-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

MS

§

29

7A

.67

, su

bd. 1

5.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

MS

§ 2

97

A.7

2; s

elle

rs a

llow

ed

120

day

s to

ob

tain

val

-

id c

erts

. on

au

dit

. M

S §

29

7A

.66

5(b

)(2

)(i)

.

SSU

TA c

erts

. may

be

use

d.

MS

§ 2

97

A.7

2.

Selle

rs m

ust

cap

ture

th

e

pu

rch

aser

’s M

N I

D n

um

ber

s

(or

oth

er in

form

atio

n if

MN

ID is

un

avai

lab

le)

bu

t ar

e

no

t re

qu

ired

to

ver

ify

them

.

No

ven

do

r co

mp

.

MN

has

a li

mit

ed d

i-

rect

pay

pro

visi

on

. MR

81

30

.34

00

(4).

62 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

85,5

47).

Cen

tral

ad

min

. of

the

loca

l tax

es. M

S §

29

7A

.99

(9)(

a).

Loca

ls

hav

e th

e sa

me

tax

bas

e at

th

e st

ate.

Id.

Stat

e h

as c

urr

ent

tax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e. H

isto

rica

l

info

rmat

ion

no

t fo

un

d.

htt

p:/

/ww

w.r

even

ue.

sta

te.m

n.u

s/bu

sin

ess-

es/s

ut/

Page

s/Lo

cal_

Tax_

Info

.asp

x.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n s

pec

-

ified

an

d o

ther

dig

ital

pro

du

cts

as d

efin

ed.

MS

§§ 2

97

A.6

1(3

)(l)

;

29

7A

.61

, su

bd. 4

(o).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. M

S

§ 2

97

A.6

1, s

ubd. 3

(f);

DO

R S

ale

s Ta

x Fa

ct

Shee

t 1

34

(0

8/1

6).

Tax

liab

ility

rel

ief

limit

ed t

o s

elle

rs a

nd

pu

rch

aser

s re

lyin

g o

n

rate

s an

d b

ou

nd

ary

da-

tab

ase.

MS

§ 2

97

A.9

95

,

subd. 1

0.

Selle

rs o

win

g $2

50,0

00

or

mo

re d

uri

ng

the

pre

-

vio

us

year

mu

st m

ake

adva

nce

pay

men

ts. M

S

§ 2

89

A.2

0, s

ubd. 4

(b).

Cre

dit

lim

ited

to

use

tax. M

S § 2

97

A.8

0.

Full

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

.

MS

§ 2

97

A.8

0.

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Cre

dit

s o

ther

sta

tes’

tax

on

acc

el. l

ease

pay

-

men

ts. M

S § 2

97

A.8

0.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

MS

§§ 2

97

A.8

1, s

ubd.

2, 2

89

A.4

0, s

ubd. 2

; MR

81

30

.74

00

, su

bpa

rt 1

.

Stat

e h

as li

mit

ed

wri

tten

pro

cess

al-

low

ing

pu

rch

aser

s

to o

bta

in r

efu

nd

s

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. M

S §

28

9A

.50

, su

bd. 2

a.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

MS

§

15

C.0

3.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

42

MIS

SISS

IPP

I

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

6%.

Mfg

. eq

uip

. fo

r m

ach

iner

y u

sed

ex

clu

-

sive

ly a

nd

dir

ectl

y in

mfg

. is

tax

able

w/

red

uce

d r

ate

of

1.5%

. MC

A §

27

-65

-17

(1)

(e);

MC

R §

35

-IV-

7.0

3(1

00

). T

his

ex

emp

-

tio

n is

lim

ited

to

“p

lan

t u

se.”

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

raw

ma-

teri

als,

cat

alys

ts, c

hem

ical

s, a

nd

wel

din

g

or

oth

er in

du

stri

al g

ases

(o

ther

th

an n

at-

ura

l gas

). M

CA

§ 2

7-6

5-1

01

(1)(

b);

MC

R §

35

-IV-

7.0

3(4

03

).

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

. MC

A §

27

-65

-10

1(5

); § 5

7-7

3-

21

(14

)(b).

Ser

vice

s ar

e ta

xed

at

con

sum

-

er le

vel.

MC

A §

27

-65

-19

(1)(

d)(

i)(1

).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le. M

CA

§

57

-73

-21

(14

), 2

7-6

5-1

01

(5)(

a)(

v). C

able

serv

ices

are

tax

able

. MC

A §

27

-65

-23

.

Elec

tric

eq

uip

.: ta

xab

le a

t 1.

5% r

ate.

MC

R

§ 3

5-I

V-7

.03

(10

0).

Gas

eq

uip

. is

tax

able

.

Elec

tric

ity

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed, b

ut

ther

e ar

e ce

rtai

n e

xem

pti

on

s.

MC

A §

§ 2

7-6

5-1

9, -

19

(1)(

a)(

i).

No

ex

emp

tio

n c

ert.

pro

cess

. Mu

st r

ely

on

exem

pti

on

ru

ling.

MC

R §

35

-IV-

03

.06

(11

1);

no

ru

le

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

.

on

au

dit

.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay n

ot

be

use

d.

Pu

rch

aser

mu

st p

rovi

de

sell-

er w

ith

ex

emp

tio

n a

uth

ori

-

zati

on

lett

er is

sued

by

DO

R.

MC

R §

35

-IV-

03

.06

(11

1),

35

-IV-

03

.07

(10

1))

.

Ven

do

r co

mp

.: 2%

of

tax

du

e (c

app

ed a

t $5

0 p

er

mo

nth

an

d $

600

per

cal

en-

dar

yea

r). M

CA

§ 2

7-6

5-

33

(1).

Dir

ect

pay

lim

ited

to

cer

tain

ind

ust

ries

. MC

A §

27

-65

-93

;

MC

R §

35

-IV-

01

(30

1)-

(30

4).

2 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

1,48

3,64

9).

Cen

tral

ad

min

. of

the

loca

l tax

es. M

CA

§ 2

7-

65

-24

1(5

)(a

). Lo

cals

use

th

e sa

me

tax

bas

e

as t

he

stat

e. M

CA

§

27

-65

-24

1(2

).

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s.

htt

p:/

/ww

w.d

or.

ms.

gov/

Bu

sin

ess/

Page

s/Sa

les-

Tax-

Ra

tes.

asp

x. D

OR

web

site

do

es n

ot

hav

e a

bo

un

dar

y d

atab

ase.

No

t a

full

SSU

TA

mem

ber

.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

MC

A §

27

-

65

-26

.

No

tax

imp

ose

d o

n a

per

son

mer

ely

acce

ss-

ing

pre

-wri

tten

co

m-

pu

ter

soft

war

e. M

CR

§

35

-IV-

05

.06

(30

0).

Lim

ited

tax

liab

ility

relie

f fo

r se

llers

an

d

pu

rch

aser

s w

ho

rece

ive

a le

tter

ru

ling

fro

m t

he

agen

cy. M

CR

§ 3

5-I

-1.0

1(1

08

).

Selle

rs a

vera

gin

g >

$50,

000

mo

nth

ly m

ust

mak

e o

ne

adva

nce

pay

men

t ea

ch J

un

e

that

eq

ual

s 75

% o

f th

e

curr

ent

Jun

e’s

liab

ility

or

75%

of

the

pri

or

Jun

e’s

liab

ility

. MC

A §

27

-65

-33

.

Cre

dit

lim

ited

to

use

tax

. MC

A §

27

-67

-7(a

).

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. M

CR

§ 3

5-I

V-

1.0

6(1

00

).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. S

tate

an

d

Loca

l Advi

sory

Cou

nci

l

Surv

ey: C

redit

for

Tax

Paid

Lea

ses

(4/1

1).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

MC

A §

27

-65

-33

(9);

MC

R §

35

-IV-

2.0

4(2

01

).

Pu

rch

aser

s re

-

qu

ired

to

ob

tain

refu

nd

s fr

om

th

e

selle

r.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

MC

A §

43

-

13

-20

1 e

t se

q.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Am

eric

an

Ba

nk-

ers

Ins.

Co.

of

Flori

da

v. B

ooth

,

830

So.2

d 1

205

(Mis

s. 2

002)

.

Rec

ent

legi

slat

ion

(SB

297

3 (2

017)

)

allo

ws

con

tin

gen

t

fee

aud

itin

g.

43

MIS

SOU

RI

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

9%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs M

&E

dir

ect-

ly u

sed

in “

larg

er s

cale

” m

fg. o

f a

pro

du

ct

to b

e so

ld f

or

fin

al u

se o

r co

nsu

mp

tio

n.

RSM

o §

14

4.0

30

.2(5

), (

6);

Fred

Web

er,

Inc.

v. D

ir. o

f R

even

ue,

452

S.W

.3d

628

(Mo

. 201

5).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

in

gred

ien

ts

and

co

mp

on

ent

par

ts u

sed

or

con

sum

ed

in p

rod

uci

ng

a p

rod

uct

wit

h t

he

inte

nti

on

of

it b

ein

g so

ld f

or

fin

al u

se o

r co

nsu

mp

-

tio

n. R

SMo §

14

4.0

30

.2(2

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. B

oth

serv

ices

tax

ed a

t co

nsu

mer

leve

l. R

SMo §

14

4.0

20

.1(4

).

Cab

le e

qu

ip: e

xem

pt.

RSM

o §

14

4.0

10

.1(1

5)(

d).

Cab

le s

ervi

ces:

ex

emp

t.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

RSM

o

§§ 1

44

.03

0, 1

44

.05

4(2

). El

ectr

icit

y

and

gas

so

ld t

o c

on

sum

ers

are

gen

eral

ly

tax

ed. R

SMo §

14

4.0

20

.1(3

); 1

2 C

SR 1

0-

10

8.3

00

(2)(

A).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

12

CSR

10

-10

7.1

00

; no

ru

le

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

. on

aud

it, b

ut

DO

R a

llow

s u

nti

l

adm

inis

trat

ive

hea

rin

g to

pro

du

ce c

erts

.

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 2%

of

tax

du

e. R

SMo §

14

4.1

40

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ho

pu

rch

ase

mo

re

than

$75

0,00

0 o

f TP

P a

nd

tax

able

ser

vice

s p

er y

ear.

12

CSR

10

-10

4.0

40

(2)(

B).

1,92

5 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

3,11

1).

Cen

tral

ad

min

. of

the

loca

l tax

es.

RSM

o §

§ 3

2.0

87

(6),

14

4.7

57

(3),

(4

).

Loca

ls u

se t

he

sam

e

tax

bas

e as

th

e st

ate.

RSM

o §

§ 3

2.0

87

(5),

(7),

14

4.7

57

(3),

(4

).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bac

k to

199

7 b

ut

do

es

no

t h

ave

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/dor.m

o.go

v/

bu

sin

ess/

sale

s/ra

tes/

.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

L.R

.

73

38

(1

2/1

3).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. 1

2

CSR

10

-10

9.0

50

(3)(

I).

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

.

Selle

rs o

win

g $1

0,00

0

or

mo

re e

very

6

mo

nth

s m

ust

mak

e

4 ad

van

ce p

aym

ents

per

mo

nth

. RSM

o §

14

4.0

81

; 12

CSR

10

-

10

4.0

30

(3).

Cre

dit

lim

ited

to

use

tax

. RSM

o §

32

.20

0,

Art

. V. F

ull

cred

it f

or

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. R

SMo §

32

.20

0, A

rt. V

.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

on

an

amo

rtiz

ed b

asis

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

RSM

o §

§ 1

44

.19

0,

14

4.6

96

; 12

CSR

10

-

10

2.1

00

.

Pu

rch

aser

can

ob

-

tain

an

ass

ign

men

t

of

righ

ts f

rom

th

e

selle

r.

Form

54

40

(12

/14

).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

Cla

ss a

ctio

n s

uit

s

allo

wed

.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

MO

NTA

NA

– N

ot

Ap

pli

cab

le

44

NE

BR

ASK

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

4%.

Mfg

. mac

hin

ery

and

eq

uip

. is

exem

pt

if

pu

rch

ased

fo

r u

se in

mfg

., b

ut

excl

ud

es

vari

ou

s it

ems

no

t u

sed

in g

uid

ing,

co

n-

tro

llin

g, o

per

atin

g, o

r m

easu

rin

g o

f th

e

mfg

. pro

cess

. NR

S §§ 7

7-2

70

4.2

2, 7

7-

27

01

.47

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

ingr

e-

die

nts

an

d c

om

po

nen

t p

arts

of

pro

du

ct

man

ufa

ctu

red

. 31

6 N

AR

&R

1-1

07

.04

-10

7.0

5.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. 3

16

NA

R&

R 1

-06

5.0

4. B

oth

ser

vice

s ar

e ta

xed

on

co

nsu

mer

leve

l. N

RS

§ 7

7-2

70

1.1

6(2

)

(b).

Cab

le e

qu

ip.:

tax

able

. 3

16

NA

R&

R

1-0

81

.05

. Ser

vice

s ar

e ta

xed

at

con

sum

er

leve

l. N

RS

§§ 7

7-2

70

1.1

6(2

)(d),

(3

)(b).

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

NR

S § 7

7-2

70

4.1

3. E

lect

rici

ty a

nd

gas

sold

to

co

nsu

mer

s ar

e ta

xed

. NR

S § 7

7-

27

01

.16

(2)(

c).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

31

6

NA

R&

R 1

-01

3.0

2A

; sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. 3

16

NA

R&

R 1

-01

3.0

2A

.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 2.

5% o

f ta

x

du

e (c

app

ed a

t $3

,000

per

mo

nth

). N

RS

§ 7

7-2

70

3(2

)

(d).

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ho

mak

e ta

xab

le

pu

rch

ases

of

at le

ast

$3M

per

yea

r.

31

6 N

AR

&R

1-0

97

.03

.

236

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

7,73

9).

Cen

tral

ad

min

. of

the

loca

l tax

es. N

RS

§§

77

-27

,14

3, 1

3-2

81

4,

13

-32

4. L

oca

ls u

se

the

sam

e ta

x b

ase

as

the

stat

e. N

RS

§ 7

7-

27

,14

2(1

).

Web

site

has

cu

rren

t

tax

rat

es, h

isto

rica

l tax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e, b

ut

do

es n

ot

incl

ud

e lo

cal t

ax r

ates

.

htt

p:/

/ww

w.r

even

ue.

neb

rask

a.g

ov/r

e-

sea

rch

/ch

ron

olo

gy.

htm

l.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

NR

S § 7

7-

27

01

.16

(9).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Neb

rask

a I

nfo

rma

tion

Gu

ide

No.

6-5

11

-20

11

(6/1

1).

Lim

ited

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liab

ility

relie

f fo

r se

llers

an

d

pu

rch

aser

s re

lyin

g o

n

SSU

TA g

uid

ance

. NR

S §

77

-27

12

.05

(7).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. NR

S § 7

7-2

70

4.3

1.

Full

cred

it f

or

oth

er

stat

e an

d lo

cal t

axes

.

31

6 N

AR

&R

1-0

71

.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. 31

6

NA

R&

R 1

-01

8, -

07

1.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

NR

S § 7

7-2

70

8(2

)(j)

.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. Fo

rm 7

(2/1

6).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

NR

S § 6

8-

93

4.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

45

NE

VA

DA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

6%.

Mfg

. eq

uip

. is

tax

able

. Tax

imp

ose

d o

n s

ale

of T

PP

to

per

son

s w

ho

pu

rch

ase

it f

or

use

in m

fg.,

pro

du

cin

g, o

r p

roce

ssin

g T

PP.

NA

C

37

2.3

70

(1).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P

inco

rpo

rate

d in

to m

anu

fact

ure

d a

rtic

les

to b

e so

ld. N

AC

37

2.3

70

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. N

RS

§

37

2.1

05

. Bo

th s

ervi

ces

are

no

t su

bje

ct t

o

sale

s ta

x. N

RS

§ 3

63

C.

Cab

le e

qu

ip.:

tax

able

. NR

S § 3

72

.10

5;

NA

C 3

72

.15

5(3

). S

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

NR

S §§ 3

63

C, 3

72

.73

4,

37

4.7

39

.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. NR

S §

37

2.1

05

. Ele

ctri

city

an

d g

as a

re n

ot

tax

ed

at t

he

con

sum

er le

vel.

NR

S §§ 3

74

.30

0,

37

2.2

95

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

NA

C

37

2.7

30

, 37

2.7

35

; sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. N

AC

37

2.7

30

, 37

2.7

35

.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 0.

25%

of

tax

du

e. N

RS

§§ 3

72

.37

0(1

),

37

2.3

55

.

Dir

ect

pay

lim

ited

to

pu

r-

chas

ers

wh

o d

o n

ot

mai

n-

tain

a p

lace

of

bu

sin

ess

in

Nev

ada.

NR

S § 3

60

B.2

60

(1).

18 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

150,

031)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. N

RS

§§

37

4.7

23

, 37

4.3

80

. Lo

-

cals

use

th

e sa

me

tax

bas

e as

th

e st

ate.

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e b

ut

do

es

no

t h

ave

his

tori

cal

rate

s.

htt

p:/

/ta

x.n

v.go

v/

Pu

bli

cati

on

s/Sa

les_

an

d_U

se_T

ax_

Pu

bli

-

cati

on

s/.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Ne-

vada

Sta

te T

axa

bil

ity

Ma

trix

ver

sion

20

15

.4.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

T g

uid

-

ance

. NR

S § 3

60

B.2

50

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. NA

C 3

72

.05

5. F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

. Id.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

pro

visi

on

do

es n

ot

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. N

RS

§§

37

2.3

68

(1),

(4

).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. N

RS

§

37

2.6

30

(2).

NV

fal

se c

laim

s ac

t

may

ap

ply

to

tax

-

es. N

RS

§ 3

57

.01

0

et s

eq.

Cla

ss a

ctio

n s

uit

on

inte

rnet

acc

ess

fees

cu

rren

tly

pen

din

g.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

NE

W H

AM

PSH

IRE

– N

ot

Ap

pli

cab

le

46

NE

W J

ER

SEY

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

3%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

for

use

dir

ectl

y an

d p

rim

arily

in t

he

pro

du

c-

tio

n o

f TP

P t

hro

ugh

mfg

., as

sem

blin

g, o

r

refi

nin

g. N

JRS

§ 5

4:3

2B

-8.1

3(a

).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P

wh

ich

will

bec

om

e p

art

of

the

fin

ish

ed

pro

du

ct. N

JRS

§ 5

4:3

2B

-8.1

3(a

); N

JAC

18

:24

-4.4

(a).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. N

JRS

§ 5

4:3

2B

-8.1

3(c

). B

oth

ser

vice

s ta

xed

at

con

sum

er le

vel.

NJR

S § 5

4:3

2B

-3(f

)(1

).

Cab

le e

qu

ip.:

exem

pt.

NJR

S §

54

:32

B-8

.13

(c).

Cab

le s

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

NJR

S §

54

:32

B-2

(cc)

(13

).

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

NJR

S

§ 5

4:3

2B

-8.1

3(b

). E

lect

rici

ty a

nd

gas

pro

du

cts/

serv

ices

so

ld t

o c

on

sum

ers

are

tax

ed. N

JRS

§§ 5

4:3

2B

-2(g

), -3

(a),

-8.1

1.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

Selle

rs a

llow

ed 1

20 d

ays

to

ob

tain

val

id c

erts

. on

au

dit

.

NJA

C 1

8:2

4-1

0.4

(d).

SSU

TA e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

.

Dir

ect

pay

allo

wed

if s

ho

wn

it is

imp

oss

ible

to

det

erm

ine

at t

he

tim

e o

f sa

le. N

JRS

§

54

:32

B-1

2(b

).

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

NJR

S §

34

:1B

-20

4.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s.

htt

p:/

/ww

w.s

tate

.

nj.u

s/tr

easu

ry/t

axa

-

tion

/sa

lest

ax.

shtm

l.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

ig-

ital

pro

du

cts.

NJR

S §

54

:32

B-2

(zz)

, -3

(a).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. L

R:

20

12

-4-S

UT (

06

/12

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

T g

uid

-

ance

rel

ated

to

SSU

TA.

NJR

S § 5

4:3

2B

-14

(g).

Selle

rs o

win

g $3

0,00

0

or

mo

re in

th

e p

rio

r

year

mu

st m

ake

mo

nth

-

ly a

dva

nce

pay

men

ts.

NJA

C 1

8:2

4-1

1.2

(a)-

(c);

NJR

S § 5

4:3

2B

-17

(b).

Cre

dit

lim

ited

to

use

tax

. NJR

S § 5

4:3

2B

-

11

(6).

Do

es n

ot

pro

vid

e cr

edit

fo

r o

ther

stat

es’ l

oca

l tax

es. N

JRS

§ 5

4:3

2B

-11

(6).

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

No

cre

dit

aga

inst

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. NJR

S §

54

:32

B-7

(c).

Bad

deb

t d

edu

ctio

n

pro

visi

on

do

es n

ot

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. N

JRS

§

54

:32

B-1

2.1

.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. N

JRS

§

54

:32

B-2

0(a

).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

NJR

S §

2A

:32

C-2

. See

als

o S

tate

of

New

Jer

sey

ex r

el.

Ca

mpa

gna

v. P

ost

Inte

gra

tion

s, I

nc.

,

166

A.3

d 1

177

(N.J

. Su

per

. Ct.

Ap

p.

Div

. 201

7).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Ava

llon

e v. S

ears

Hold

ing

Corp

.,

0000

04-2

010,

2013

WL

1501

450

(N.J

. Tax

Ap

r. 1,

2013

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

47

NE

W M

EX

ICO

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 6

0%.

Mfg

. eq

uip

. tax

able

fo

r m

ach

iner

y u

sed

in

mfg

., p

roce

ssin

g, o

r fa

bri

cati

ng.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

ingr

edi-

ents

or

com

po

nen

t p

arts

of

man

ufa

ctu

red

pro

du

cts

as w

ell a

s so

me

con

sum

able

s.

NM

S § 7

-9-4

6.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

NM

AC

3.2

.1.1

8.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

NM

AC

3.2

.1.1

8(A

).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. NM

S §

7-9

-46

(F)(

2).

Elec

tric

ity

and

gas

are

tax

ed

at t

he

con

sum

er le

vel.

NM

S § 7

-9-3

.5.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

NM

S § 7

-9-4

3(B

); N

MA

C

3.2

.20

1.1

4; s

elle

rs a

llow

ed

on

ly 6

0 d

ays

to o

bta

in v

alid

cert

s. o

n a

ud

it. N

MS

§ 7

-9-

43

(A).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

in li

m-

ited

cir

cum

stan

ces.

NM

AC

3.2

.20

1.1

3, 3

.2.2

01

.19

.

Bu

yers

mu

st p

ut

the

selle

r’s

gro

ss r

ecei

pts

tax

reg

istr

a-

tio

n n

um

ber

on

th

e ce

rt.

No

ven

do

r co

mp

.

Do

es n

ot

issu

e d

irec

t p

ay

per

mit

s. L

imit

ed a

bili

ty t

o

ente

r in

to a

gree

men

ts. N

MS

§ 7

-1-2

1.1

.

267

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

7,71

2).

Cen

tral

ad

min

. of

the

loca

l tax

es. N

MS

§§

7-1

-2, 7

-19

D-8

. Lo

cals

use

s th

e sa

me

tax

bas

e

as t

he

stat

e. N

MS

§§

7-1

9D

-4(A

), 7

-20

C-4

.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bu

t d

oes

no

t h

ave

a

bo

un

dar

y d

atab

ase.

htt

p:/

/ww

w.ta

x.n

ew-

mex

ico.

gov/

Bu

sin

ess-

es/t

ax-

table

s.a

spx.

No

t a

full

SSU

TA

mem

ber

.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

NM

S § 7

-9-

3.5

(A)(

1).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

No

tax

liab

ility

relie

f fo

r se

llers

an

d

pu

rch

aser

s re

lyin

g

on

TR

D g

uid

ance

, w/

limit

ed p

enal

ty r

elie

f.

NM

S. §

7-1

-69

, NM

AC

3.1

.11

.11

(A).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. NM

S §§ 7

-9-7

9.1

,

7-9

-79

(A).

Fu

ll cr

edit

for

oth

er s

tate

s’ s

tate

and

loca

l tax

es. N

MA

C

3.2

.30

1.8

; NM

S § 7

-5-1

,

Art

. V.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

NM

S § 7

-9-6

7.

Lim

ited

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s to

ob

tain

use

tax

refu

nd

s fr

om

th

e

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

NM

S § 7

-1-2

6.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

NM

S § 4

4-

9-3

(E).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed u

nle

ss

adm

inis

trat

ive

rem

edie

s ex

hau

st-

ed.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

48

NE

W Y

OR

K

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs M

&E

dir

ectl

y an

d p

red

om

inat

ely

use

d o

r

con

sum

ed in

th

e p

rod

uct

ion

of T

PP,

gas,

elec

tric

ity,

refr

iger

atio

n, o

r st

eam

fo

r sa

le.

NY

TL

§ 1

11

5(a

)(1

2).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

e-

rial

s so

ld a

s a

ph

ysic

al c

om

po

nen

t p

art.

NY

TL

§ 1

10

1(b

)(4

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t.

NY

TL

§ 1

11

5(a

)(1

2-a

). B

oth

ser

vice

s ar

e

tax

ed o

n c

on

sum

er le

vel.

NY

TL

§§ 1

86

-e,

11

05

(b)(

1)-

(3).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le (

limit

ed t

o

equ

ip. u

sed

in p

rogr

amm

ing

and

tra

ns-

mis

sio

n).

NY

TL

§§ 1

11

5(a

)(3

8),

(3

9);

TSB

-M-8

0(6

)S. S

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

NY

TL

§§ 1

10

5(c

)(9

)(i)

,

(ii)

; 18

6-e

2(b

)(2

);TSB

-M-8

0(6

)S.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

NY

TL

§§

11

15

(a)(

12

), (

c)(1

), (

c)(2

). E

lect

rici

ty

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed, w

/

exem

pti

on

s. N

YTL

§ 1

10

5(b

)(1

).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

20

NY

CR

R 5

32

.4(b

)(2

); N

o

rule

allo

win

g se

ller

120

day

s

to o

bta

in v

alid

cer

ts. o

n a

u-

dit

. 20

NY

CR

R 5

32

.4(b

)(2

).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay n

ot

be

use

d.

NY

TL

§ 1

13

2(c

); TB

-ST-

24

0

(3/1

0).

Selle

rs n

ot

req

uir

ed t

o v

erif

y

exem

pti

on

acc

ou

nt

nu

m-

ber

s. N

YC

RR

53

2.4

(b).

Lim

ited

ven

do

r co

mp

.: 5%

of

tax

es d

ue

(cap

ped

at

$200

per

rep

ort

ing

per

iod

). Se

ll-

ers

filin

g m

on

thly

ret

urn

s

or

sub

ject

to

Pro

mp

Tax

are

no

t el

igib

le f

or

the

cred

it.

NY

TL

§ 1

13

7(f

); T

B-S

T-9

25

(11

/10

).

NY

has

a b

road

-bas

ed d

irec

t

pay

pro

visi

on

. NY

TL

§

11

32

(c)(

2).

85 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

227,

978)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. N

YS

Offi

ce

of

the

Sta

te C

om

p-

troller

, “Lo

cal G

over

n-

men

t Sa

les

Taxe

s in

New

York

Sta

te: 2

01

5

Upda

te,”

Ma

r. 2

01

5.

Som

e lo

cals

do

no

t

use

th

e sa

me

tax

bas

e

as t

he

stat

e. I

d.;

Pu

b.

75

0 (

11

/15

) pg.

20

.

Web

site

has

cu

rren

t

tax

rat

es a

nd

his

tori

-

cal t

ax r

ates

bu

t d

oes

no

t h

ave

a b

ou

nd

ary

dat

abas

e.

htt

ps:

//w

ww

.ta

x.

ny.

gov/

pu

bs_

an

d_

bu

lls/

pu

bli

cati

on

s/

sale

s/ra

tes_

by_

loca

l_

juri

sdic

tion

.htm

.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

TSB

-M-1

1(5

)S (

4/1

1).

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e

bas

ed o

n c

on

stru

ctiv

e

po

sses

sio

n o

f TP

P. TB

-

ST-1

28

(8

/14

) pg.

2.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

TF

guid

ance

.

Selle

rs o

win

g m

ore

than

$50

0,00

0 p

er y

ear

mu

st m

ake

adva

nce

pay

men

ts. N

YTL

§

10

(b)-

(c).

Cre

dit

lim

ited

to

use

tax

. NY

TL

§ 1

11

8(7

)

(a);

TB

-ST-

76

5 (

Oct

. 9,

20

13

). F

ull

cred

it f

or

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. N

YTL

§

11

18

(7).

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Lim

ited

cre

dit

on

acce

l. le

ase

pay

men

ts.

TSB

-A-1

5(50

)S.

Bad

deb

t d

edu

ctio

n

pro

visi

on

do

es n

ot

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. R

epea

led

7/1/

10.

Pu

rch

aser

s ca

n o

b-

tain

ref

un

ds

fro

m

the

stat

e w

/ou

t

goin

g th

rou

gh t

he

selle

r. TB

-ST-

35

0

(6/1

4).

Allo

ws

tax

fal

se

clai

ms

acti

on

s.

N.Y

.F.L

. § 1

87

et.

seq.;

See

e.g.

, Peo

-

ple

Sch

nei

der

ma

n

v. S

pri

nt

Nex

tel

Corp

., 26

N.Y

.3d

98 (

2015

).

Cla

ss a

ctio

n

law

suit

s al

low

ed

for

tax

es. E

s-

tler

v. D

un

kin

Bra

nds,

In

c., 2

016

WL

3086

073

(S.D

.N.Y

.).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

49

NO

RT

H C

AR

OLI

NA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

1%.

Eff.

7/1/

18, m

fg. e

qu

ip. e

xem

pt

for

ma-

chin

ery

par

ts, a

nd

acc

esso

ries

use

d in

th

e

pro

du

ctio

n p

roce

ss (

pri

or

to 7

/1/1

8 a

1%

tax

, $80

cap

per

art

icle

, ap

plie

d).

NC

GS

§

10

5-1

87

.51

, N.C

.G.S

. § 1

05

-16

4.1

3.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

sal

es o

f

TP

P t

hat

en

ter

into

or

bec

om

e an

ingr

e-

die

nt

or

com

po

nen

t p

art

of T

PP

th

at is

man

ufa

ctu

red

. NC

GS

§ 1

05

-16

4.1

3(8

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. N

CG

S

§ 1

05

-16

4.1

3(5

b).

Bo

th s

ervi

ces

tax

ed a

t

con

sum

er le

vel.

NC

GS

§ 1

05

-16

4.4

C.

Cab

le e

qu

ip.:

exem

pt.

NC

GS

§ 1

05

-

16

4.1

3(5

d).

Ser

vice

s ar

e ta

xed

at

con

-

sum

er le

vel.

NC

GS

§ 1

05

-16

4.4

(a)(

6).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

, on

ly m

fg.

is e

xem

pt.

NC

GS

§§ 1

05

-16

4.1

3(8

), (

8a

).

Elec

tric

ity

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed, w

/so

me

exem

pti

on

s. N

CG

S § 1

05

-

16

4.4

(a)(

9).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

NC

GS

§ 1

05

-16

4.2

8(a

);

selle

rs a

llow

ed 1

20 d

ays

to

ob

tain

val

id c

erts

. on

au

dit

NC

GS

§ 1

05

-16

4-2

8(b

).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

NC

GS

§ 1

05

-

16

4.2

8(b

).

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ith

at

leas

t $5

M in

ann

ual

TP

P p

urc

has

es. N

CG

S

§ 1

05

-16

4.2

7A

(a).

104

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

91,6

87).

Cen

tral

ad

min

. of

the

loca

l tax

es. N

CG

S §§

10

5-4

69

(a).

Loca

ls

use

th

e sa

me

tax

bas

e

as t

he

stat

e. N

CG

S §§

10

5-4

67

.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e. h

ttps:

//

ww

w.n

cdor.g

ov/t

ax-

es/s

ale

s-a

nd-u

se-ta

x/

sale

s-a

nd-u

se-ta

x-

rate

s-oth

er-in

form

a-

tion

.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n a

list

of

dig

ital

pro

du

cts

del

iver

ed o

r ac

cess

ed

elec

tro

nic

ally

th

at

wo

uld

be

tax

able

if s

old

in a

tan

gib

le

med

ium

. NC

GS

§ 1

05

-

16

4.4

(a)(

6b).

No

tax

imp

ose

d o

n a

per

son

mer

ely

acce

ss-

ing

pre

-wri

tten

co

m-

pu

ter

soft

war

e. I

mport

-

an

t N

oti

ce: C

om

pu

ter

Soft

wa

re (

2/1

0).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

. NC

GS

§§

10

5-1

64

.42

L, -2

64

.

Selle

rs o

win

g $2

0,00

0

or

mo

re p

er m

on

th

mu

st m

ake

adva

nce

pay

men

ts w

/pri

or

mo

nth

’s r

etu

rn. N

CG

S §

10

5-1

64

.4(1

6)(

b2

).

Cre

dit

lim

ited

to

use

tax

. NC

GS

§ 1

05

-

16

4.6

(c).

Ho

wev

er,

tax

cred

it li

mit

ed s

tate

to

stat

e an

d lo

cal t

o lo

cal.

No

acc

el. l

ease

pay

-

men

ts. C

red

it a

gain

st

oth

er s

tate

s’ t

ax o

n

acce

l. le

ase

pay

men

ts.

NC

GS

§ 1

05

-16

4.6

(c).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o

pri

vate

-lab

el c

red

it

card

s. N

CG

S § 1

05

-

16

4.1

3(1

5);

Nort

h

Ca

roli

na

Dir

ecti

ve N

o.

SD-0

3-2

, 10

//1

1/2

01

0.

Stat

e h

as li

mit

ed

wri

tten

pro

cess

al-

low

ing

pu

rch

aser

s

to o

bta

in r

efu

nd

s

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r (e

.g.,

cert

ain

can

celle

d

serv

ice

con

trac

ts).

NC

GS

§ 1

05

-

16

4.1

1A

(b)(

2);

Sale

s a

nd U

se T

ax

Tech

nic

al B

ullet

in

34

-21

(A).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

NC

GS

§

1-6

07

(c).

Som

e cl

ass

acti

on

suit

s al

low

ed.

NC

GS

§ 1

05

-

24

1.1

8.

Co

nti

nge

nt

fee

and

pri

vate

-co

n-

trac

t au

dit

ing

pro

hib

ited

. N

CG

S

§ 1

05

-24

3.1

(a1

).

50

NO

RT

H D

AK

OTA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

8%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs M

&E

use

d

dir

ectl

y in

mfg

. of T

PP

fo

r w

ho

lesa

le,

reta

il, o

r le

ase,

an

d m

ust

be

use

d in

a n

ew

mfg

. pla

nt

or

in a

ph

ysic

al o

r ec

on

om

ic

exp

ansi

on

of

an e

xis

tin

g m

fg. p

lan

t. N

DC

C

§ 5

7-3

9.2

-04

.2-0

1(2

1);

ND

AC

§ 8

1-0

4.1

-

01

-23

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

inp

uts

that

en

ter

or

bec

om

e in

gred

ien

ts o

r co

m-

po

nen

ts o

f TP

P. N

DC

C §

§ 5

7-3

9.2

-04

(21

),

(27

).

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

. ND

CC

§ 5

7-3

9.2

-04

.3(3

). B

oth

serv

ices

tax

ed a

t co

nsu

mer

leve

l. N

DC

C

§§ 5

7-3

9.2

-04

.3(3

); 5

7-3

9.2

-01

(17

).

Cab

le e

qu

ip.:

tax

able

. N

DA

C §

§ 8

1-0

4.1

-

04

-41

.1, 8

1-0

4.1

-01

-23

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

Id.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. ND

CC

§

57

-39

.2-0

4.3

(e).

Elec

tric

ity

and

gas

so

ld

to c

on

sum

ers

are

no

t ta

xed

. ND

CC

§§ 5

7-

39

.2-0

4(2

7),

(4

9),

(5

3).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

ND

CC

§ 5

7-3

9.2

-19

; sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it.

SSU

TA e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 1.

5% o

f ta

x

du

e (c

app

ed a

t $1

10 p

er

retu

rn).

ND

CC

§ 5

7-3

9.2

-

12

.1(1

).

Dir

ect

pay

allo

wed

to

app

lican

ts m

akin

g su

ffici

ent

pu

rch

ases

to

just

ify

the

exp

ense

of

tax

dep

artm

ent

aud

its.

ND

AC

§ 8

1-0

4.1

-

01

-05

.

147

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

4,57

5).

Cen

tral

ad

min

. of

the

loca

l tax

es. N

DC

C §

§

11

-09

.1-0

5(2

)(d),

40

-05

.1-0

6(1

6)(

d),

57

-01

-02

.1(1

). Lo

cals

use

th

e sa

me

tax

bas

e

as t

he

stat

e. N

DC

C §

§

11

-09

.1-0

5(2

)(a

), 4

0-

05

.1-0

6(1

6)(

a).

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e b

ut

do

es

no

t h

ave

no

t h

isto

rica

l

tax

rat

es.

htt

ps:

//w

ww

.nd.g

ov/

tax/

use

r/bu

sin

esse

s/

form

spu

bli

cati

on

s/

sale

s-u

se-ta

x.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

. ND

CC

§§

57

-39

.2-3

1, .

4-0

7.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. ND

CC

§ 5

7-4

0.2

-

11

. Fu

ll cr

edit

fo

r o

ther

stat

e an

d lo

cal t

axes

.

ND

CC

§ 5

7-4

0.2

-11

.

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Cre

dit

aga

inst

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. ND

CC

§ 5

7-4

0.2

-11

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

ND

CC

§ 5

7-3

9.2

-05

.

Stat

e h

as li

mit

ed

wri

tten

pro

cess

al-

low

ing

pu

rch

aser

s

to o

bta

in r

efu

nd

s

fro

m t

he

stat

e o

n

loca

l tax

es w

/ou

t

goin

g th

rou

gh t

he

selle

r.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

Ad

dre

ss

info

,

bu

t n

ot

SSN

s, a

re

req

uir

ed

on

re-

turn

s.

Form

ST

– Sa

les,

Use

, an

d

Gro

ss

Rec

eipts

Tax

(07

/16

).

51

OH

IO

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

1%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o

M&

E p

rim

arily

use

d in

mfg

. OR

C §

§

57

39

.02

(B)(

42

)(g)

, .0

11

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

eria

ls p

rim

arily

use

d in

mfg

., an

d

mat

eria

ls u

sed

to

man

ufa

ctu

re m

fg.

equ

ip. a

nd

to

tes

t ra

w m

ater

ials

. OR

C

§§ 5

73

9.0

11

(B),

(D

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t.

OR

C §

57

39

.02

(B)(

34

). Se

rvic

es

tax

ed a

t co

nsu

mer

leve

l. O

RC

§

57

39

.01

.

Cab

le e

qu

ip.:

exem

pt.

OR

C §

57

39

.02

(B)(

53

). S

ervi

ces

are

no

t

tax

ed a

t co

nsu

mer

leve

l. O

RC

§

57

39

.01

(B)(

3)(

p).

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

OR

C

§ 5

73

9.0

2(B

)(4

2)(

a).

Ele

ctri

city

and

gas

so

ld t

o c

on

sum

ers

is s

ub

-

ject

to

uti

lity

or

sale

s ta

xes

. O

RC

§ 5

73

9.0

2(B

)(7

).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

OR

C

§ 5

73

9.0

3(B

)(4

); s

elle

rs a

l-

low

ed 1

20 d

ays

on

to

ob

tain

valid

cer

ts. o

n a

ud

it. O

RC

§ 5

73

9.0

3(B

).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 0.

75%

of

tax

du

e p

er r

etu

rn. O

RC

§

57

39

.12

(B)(

1).

OH

has

a b

road

-bas

ed

dir

ect

pay

pro

visi

on

. OR

C §

57

39

.03

1.

99 lo

cal t

ax ju

risd

ic-

tio

ns

(po

pu

lati

on

rat

io

of

116,

530)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. O

RC

§§ 5

73

9.0

5(A

),

57

41

.06

. Lo

cals

use

the

sam

e ta

x b

ase

as t

he

stat

e. O

RC

§§.

57

39

.02

1(A

), .0

26

(A);

57

41

.02

1(A

)(2

),

.02

3(A

)(2

).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/ww

w.ta

x.oh

io.

gov/

sale

s_a

nd_u

se/

rate

_ch

an

ges.

asp

x.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

ig-

ital

pro

du

cts.

OR

C §

57

39

.01

(B)(

12

).

Tax

imp

ose

d o

n

a b

usi

nes

s m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

OR

C §

57

39

.01

(B)(

3)

(e);

OA

C 5

70

3-9

-46

(B)

(1),

(2

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

T g

uid

-

ance

. OA

C 5

70

3-9

-51

.

Selle

rs >

$75

K p

er y

ear

mu

st m

ake

mo

nth

ly

adva

nce

pay

men

ts w

/

pri

or

mo

nth

’s r

etu

rn.

OR

C §

57

39

.12

2.

Cre

dit

lim

ited

to

use

tax

. OR

C §

57

41

.02

(C)

(5).

Fu

ll cr

edit

fo

r o

ther

stat

es’ s

tate

an

d lo

cal

tax

es. I

d.

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Cre

dit

aga

inst

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. OR

C §

57

41

.02

(C)(

5).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

Ch

rysl

er F

in. C

o., L

.L.C

.

v. W

ilkin

s, 81

2 N

.E.2

d

948

(Oh

io 2

004)

.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. O

RC

§

57

39

.07

.

No

fal

se c

laim

s ac

t

for

tax

es.

Cla

ss a

ctio

n s

uit

s

gen

eral

ly n

ot

allo

wed

. Vol-

ber

s-K

lari

ch v

.

Mid

dle

tow

n M

gt.,

Inc.

, 929

N.E

.2d

434

(Oh

io 2

010)

.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

Oh

io h

as

on

ero

us

tax

on

em

-

plo

ymen

t

serv

ices

.

OR

C §

§

57

39

.01

(B)

(3).

52

OK

LAH

OM

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

7%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs t

he

sale

s o

f

goo

ds,

war

es, m

erch

and

ise,

TP

P, M

&E

to a

mfg

. fo

r u

se in

a m

fg. 6

8 O

S § 1

35

9(1

).

Th

is e

xem

pti

on

co

vers

th

e en

tire

mfg

. op

-

erat

ion

: beg

inn

ing

at t

he

po

int

wh

ere

the

mat

eria

ls e

nte

r th

e m

fg. s

ite

and

en

din

g at

the

po

int

wh

ere

a fi

nis

hed

pro

du

ct le

aves

the

mfg

. sit

e. 6

8 O

S § 1

35

2(1

5).

Mfg

. in

pu

ts e

xem

pti

on

ap

plie

s to

all

TP

P f

or

use

in m

fg. o

per

atio

n. 6

8 O

S §

13

59

(1).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

68

OS

§ 1

35

4(A

)(4

).

Cab

le e

qu

ip.:

exem

pt.

68

OS

§§ 1

35

9(8

),

(9).

Serv

ices

are

gen

eral

ly n

ot

tax

ed a

t

con

sum

er le

vel.

68

OS

§ 1

35

4.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

68

OS

§§

13

59

(1),

13

52

(24

). E

lect

rici

ty a

nd

gas

sold

to

co

nsu

mer

s ar

e ta

xed

, bu

t th

ere

is

an e

xem

pti

on

fo

r re

sid

enti

al u

se. 6

8 O

S

§§ 1

35

4(A

)(2

), 1

35

7(8

).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

68

OS

§ 1

36

1(A

)(3

), O

AC

71

0:6

5-7

-6; s

elle

rs a

llow

ed

120

day

s to

ob

tain

val

id

cert

s. o

n a

ud

it. 6

8 O

S §

13

61

(A)(

3).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

. as

of

July

1, 2

017.

Dir

ect

pay

allo

wed

to

per

son

s w

ho

pu

rch

ase

$800

,000

or

mo

re a

nn

ual

ly

in t

axab

le it

ems.

68

OS

§

13

64

.1(B

).

629

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

5,96

4).

Cen

tral

ad

min

. of

the

loca

l tax

es. 6

8 O

S §

28

1. S

om

e lo

cals

, e.g

.,

elec

tric

an

d g

as, d

o

no

t h

ave

the

sam

e ta

x

bas

e as

th

e st

ate.

68

OS

§ 1

35

7(8

).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

ps:

//w

ww

.ok.g

ov/

tax/

Bu

sin

esse

s/

Tax_

Types

/Bu

sin

ess_

Sale

s_Ta

x/Sa

les_

Use

_

Lodgi

ng_

Tax_

Ra

te_

Ch

art

s/.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

68

OS

§ 1

35

4(A

)(4

)(a

)(9

).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e. 6

8

OS

§ 1

35

7(3

2);

L.R

.

LR-0

9-1

07

(1

0/1

1).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

OT

C g

uid

-

ance

. 68

OS

§ 1

35

4.3

2,

OA

C 7

10

:65

-7-1

6.

Selle

rs o

win

g $3

0,00

0

or

mo

re p

er y

ear

mu

st m

ake

adva

nce

pay

men

ts. 6

8 O

S §

13

65

(D).

Cre

dit

lim

ited

to

use

tax

. 6

8 O

S § 1

40

4(3

).

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. 6

8 O

S § 1

40

4(3

).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. O

AC

71

0:6

5-

1-1

1.

Bad

deb

t d

edu

ctio

n

pro

visi

on

do

es n

ot

app

ly t

o p

riva

te-la

bel

cred

it c

ard

s. 6

8 O

S §

13

66

(A).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

dir

ectl

y fr

om

the

stat

e w

/ou

t

goin

g th

rou

gh

the

selle

r. 6

8 O

S §

13

54

.26

(A).

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly

to t

axes

. 68

OS

§

28

2.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. 6

8

OS

§ 2

82

.

Co

nti

nge

nt

fee

aud

itin

g is

sp

ecif

-

ical

ly p

roh

ibit

ed.

68

OS

§ 2

62

. Eff

.

11/1

/17,

OT

C m

ay

use

pri

vate

-co

n-

trac

t au

dit

ing.

OR

EG

ON

– N

ot

Ap

pli

cab

le

53

PE

NN

SYLV

AN

IA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o T

PP

(in

-

clu

des

E&

M)

pre

do

min

antl

y u

sed

dir

ectl

y

in m

fg. o

r p

roce

ssin

g. 7

2 P

S §§ 7

20

1(k

)

(8)(

A),

(D

); 6

1 P

C §

32

.32

(a).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

su

pp

lies

pre

do

min

atel

y u

sed

dir

ectl

y in

mfg

. 72

PS

§ 7

20

1(k

).

Wir

ed e

qu

ip: e

xem

pt.

Wir

eles

s eq

uip

.: p

ar-

tial

ly t

axab

le. 7

2 P

S §§ 7

20

1(d

)(1

7),

(k)

(8)(

C);

61

PC

§ 6

0.2

0(h

). B

oth

ser

vice

s

are

tax

ed a

t co

nsu

mer

leve

l, w

/res

iden

tial

use

ex

emp

tio

n. 7

2 P

S §§ 7

20

1(m

)(1

),

(rr)

; 61

PC

§ 6

0.2

0.

Cab

le e

qu

ip.:

exem

pt.

72

PS

§§ 7

20

1(d

)

(12

), (

m).

On

ly p

rem

ium

cab

le s

ervi

ces

are

tax

ed o

n c

on

sum

er le

vel.

72

PS

§§

72

01

(m)(

1),

(ll).

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le

(on

ly e

xem

pts

th

e u

se o

f th

is e

qu

ip. t

o

man

ufa

ctu

re T

PP

). 7

2 P

S §§ 7

20

1(k

)

(8)(

A),

(m

). B

oth

ser

vice

s ar

e ta

xed

at

con

sum

er le

vel,

w/

exem

pti

on

fo

r re

si-

den

tial

an

d m

fg. u

se. 7

2 P

S §§ 7

20

1(m

),

72

04

(5);

61

PC

§ 3

1.1

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

72

PS

§ 7

23

7(c

); 6

1 P

C §

32

.2(b

);

selle

rs a

llow

ed o

nly

60

day

s

to o

bta

in v

alid

cer

ts. o

n a

u-

dit

. 61

PC

§ 3

2.2

(b)(

2)(

iii)

.

Lim

ited

use

of

MT

C e

xem

p-

tio

n c

erts

. fo

r re

sale

.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 1%

of

tax

du

e (c

app

ed a

t $2

5 fo

r

mo

nth

ly fi

lers

, $75

fo

r

qu

arte

rly

file

rs, a

nd

$15

0

per

sem

ian

nu

al fi

lers

). 7

2

PS

§ 7

22

7.

Dir

ect

pay

allo

wed

to

tax

-

pay

ers

that

sh

ow

it is

imp

os-

sib

le t

o d

eter

min

e ta

xab

ility

at t

he

tim

e o

f sa

le. 7

2 P

S §

7237

(d);

61

PC

§ 3

4.4

(a).

2 lo

cal s

ales

tax

juri

sdic

tio

ns

(rat

io o

f

6,35

1,19

0).

Cen

tral

ad

min

. of

the

loca

l tax

es. 5

3 P

S §§

12

72

0.5

01

, .5

06

(2).

Loca

ls u

se t

he

sam

e

tax

bas

e as

th

e st

ate.

53

PS

§ 1

27

20

.50

3;

16

PS

§§ 6

15

2-B

(a),

(b).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax r

ates

bu

t d

oes

no

t h

ave

no

t

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/ww

w.r

even

ue.

pa

.gov

/Gen

era

lTa

xIn

-

form

ati

on

/New

s%2

0

an

d%

20

Sta

tist

ics/

Page

s/R

eport

s%2

0

an

d%

20

Sta

tist

ics/

Tax-

Com

pen

diu

m.

asp

x.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

un

der

th

e

defi

nit

ion

of T

PP.

72

PS

§ 7

20

1(m

)(2

); 6

1 P

C

§ 6

0.1

9.

Tax

imp

ose

d o

n a

per

-

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. 7

2 P

S §

72

01

(k)(

1);

61

PC

§

60

.19

.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

.

Selle

rs r

emit

tin

g

$25,

000

or

mo

re f

or

thir

d q

uar

ter

of

pre

-

ced

ing

year

mu

st m

ake

adva

nce

pay

men

ts. 7

2

PS

§§ 7

21

7(a

), 7

24

6,

72

47

.

Cre

dit

lim

ited

to

use

tax

(u

nle

ss s

tate

wh

ere

tax

pai

d a

lso

cre

dit

s

bo

th s

ales

an

d u

se t

ax).

72

PS

§ 7

20

6(a

); 6

1

PC

§ 3

1.7

(b).

Fu

ll cr

ed-

it f

or

oth

er s

tate

s’ s

tate

and

loca

l tax

es. 6

1 P

C §

60

.16

(l).

No

acc

el. l

ease

pay

-

men

ts. U

ncl

ear

if P

A

cred

its

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. 7

2 P

S §§

72

47

.1(a

.1)–

(a.3

).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. 6

1 P

C §

33

.3(b

).

No

fal

se c

laim

s ac

t

for

tax

es.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. S

tra

-

na

ha

n v

. Cn

ty o

f

Mer

cer,

697

A.2

d

1049

(Pa

. Cm

mw

.

1997

).

Co

nti

nge

nt

fee

aud

itin

g is

pro

hib

ited

. 72

PS

§ 2

09

(b).

No

cu

r-

ren

t p

riva

te-c

on

-

trac

t au

dit

ing.

Ho

me

add

ress

-

es a

re

req

uir

ed

on

re-

turn

s.

PA-1

00

(3/0

9).

54

RH

OD

E I

SLA

ND

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

6%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o T

PP

(in

clu

des

M&

E) u

sed

in a

n in

du

stri

al p

lan

t

in c

on

nec

tio

n w

ith

act

ual

man

ufa

ctu

re o

f

TP

P. R

IGL

§ 4

4-1

8-3

0(2

2)(

i).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

ingr

edi-

ents

, co

mp

on

ents

, or

inte

gral

par

ts. R

IGL

§ 4

4-1

8-3

0(7

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. R

IGL

§ 4

4-1

8-3

0(4

5).

Serv

ices

tax

ed a

t co

n-

sum

er le

vel.

RIG

L §§ 4

4-1

8-7

(9),

-12

.1.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

RIG

L § 4

4-1

8-7

(10

).

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

RIG

L §

44

-18

-30

(7).

Ele

ctri

city

an

d g

as s

old

to

con

sum

ers

are

no

t ta

xed

. RIG

L § 4

4-1

8-

30

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

RIG

L

§ 4

4-1

8.1

-18

(C)(

1);

sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. R

IGL

§

44

-18

.1-1

8(C

)(1

).

SSU

TA e

xem

pti

on

cer

ts. m

ay

be

use

d.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

.

Dir

ect

pay

per

mit

lim

ited

to b

usi

nes

ses

that

reg

ula

rly

pu

rch

ase

goo

ds

and

ser

vice

s

for

use

wit

hin

an

d o

uts

ide

the

stat

e. R

IGL

§ 4

4-1

8-

19

.1(a

).

No

loca

l sal

es t

ax

juri

sdic

tio

ns.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

(n

o

rate

ch

ange

w/p

ast

5

year

s). h

ttp:/

/ww

w.

tax.

ri.g

ov/h

elp/f

aq.

ph

p.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Rh

ode

Isla

nd S

tate

Ta

xabil

ity

Ma

trix

ver

sion

20

15

.1.

No

tax

imp

ose

d o

n a

per

son

mer

ely

acce

ss-

ing

pre

-wri

tten

co

m-

pu

ter

soft

war

e. R

ICR

§

SU 1

1-2

5 R

ule

7(3

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. RIG

L § 4

4-1

8.1

-7.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. RIG

L § 4

4-1

8-3

0.A

.

Do

es n

ot

pro

vid

e a

full

cred

it f

or

oth

er s

tate

s’

loca

l tax

es. R

IGL

§ 4

4-

18

-30

.A.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

RIC

R S

U 8

7-6

; RIG

L §

44

-18

.1-2

1.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. h

ttp:/

/

ww

w.ta

x.ri

.gov

/

form

s/2

01

1/

Exc

ise/

Sale

sUse

/

Cla

im%

20

for%

20

Ref

un

d%

20

-%2

0

Sale

s%2

0or%

20

Use

%2

0Ta

x%2

0

20

11

.pdf.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

Cla

ss a

ctio

n s

uit

s

allo

wed

. Lon

g v.

Del

l, In

c., 9

84 A

.2d

1074

(R

.I. 2

009)

.

No

cu

rren

t

pri

vate

-co

ntr

act

aud

itin

g. R

IGL

§

44

-1-3

6.

55

SOU

TH

CA

RO

LIN

A

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

7%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o m

a-

chin

es u

sed

in m

fg.,

pro

cess

ing,

agr

icu

l-

tura

l pac

kagi

ng,

rec

yclin

g, c

om

po

un

din

g,

min

ing,

or

qu

arry

ing

TP

P f

or

sale

. SC

C §

12

-36

-21

20

(17

). M

ach

ines

mu

st b

e in

te-

gral

an

d n

eces

sary

to

th

e m

fg. p

roce

ss.

SCR

11

7-3

02

.5.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P t

hat

is a

n in

gred

ien

t o

r co

mp

on

ent

of T

PP

man

ufa

ctu

red

fo

r sa

le. S

CC

§§ 1

2-3

6-

90

(1)(

c)(i

i), -

11

0(1

)(c)

(ii)

; SC

R 1

17

-

30

2.1

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

SCC

§§

12

-36

-91

0(A

), -1

10

(1)(

k);

SCR

11

7-3

29

.

Cab

le e

qu

ip.:

exem

pt.

SCC

§ 1

2-3

6-

21

20

(26

). C

able

ser

vice

s ar

e ta

xed

at

con

sum

er le

vel.

SCC

§ 1

2-3

6-9

10

(B)(

3);

SCR

11

7-3

29

.4.

Elec

tric

an

d g

as e

qu

ip.:

exem

pt.

SCC

§§

12

-36

-91

0(A

), (

B)(

2).

Serv

ices

tax

ed a

t

con

sum

er le

vel,

w/e

xem

pti

on

s fo

r re

si-

den

tial

use

. SC

C §

§ 1

2-3

6-2

12

0(1

9),

(3

3),

(43

), (

50

), (

66

), (

79

); SC

C §

12

-36

-70

(1)

(e);

SCR

11

7-3

09

.12

.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

SC

C

§ 1

2-3

6-2

51

0; n

o r

ule

allo

w-

ing

selle

rs a

t le

ast

120

day

s

to o

bta

in v

alid

cer

ts. o

n

aud

it. S

CC

§ 1

2-3

6-2

51

0(B

).

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d f

or

sale

s fo

r re

sale

s,

bu

t n

ot

for

reta

il ex

emp

-

tio

ns.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

ex

emp

tio

n a

cco

un

t

nu

mb

ers

pu

rsu

ant

to

stat

ute

.

Ven

do

r co

mp

.: 2%

-3%

(cap

ped

of

$3k

or

$10k

per

year

), SC

C §

12

-36

-26

10

.

SC h

as a

bro

ad-b

ased

dir

ect

pay

pro

visi

on

. SC

C §

12

-36

-

25

10

.

245

loca

l sal

es t

ax ju

-

risd

icti

on

s (p

op

ula

tio

n

rati

o o

f 18

,879

).

Cen

tral

ad

min

. of

the

loca

l tax

es. S

CC

§§

4-1

0-9

0(A

), -3

50

(A),

-43

5(A

), -5

80

(A),

-77

0(A

), -9

40

(B).

Loca

ls n

ot

req

uir

ed

to u

se t

he

sam

e ta

x

bas

e as

th

e st

ate.

SC

Info

rma

tion

Let

ter

#1

6-1

4.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l rat

es o

r

a b

ou

nd

ary

dat

abas

e.

htt

ps:

//dor.s

c.go

v/

tax-

index

/sa

les-

an

d-

use

/Sa

les%

20

Noti

ces/

ST4

39

_04

10

20

15

.pdf.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d w

/ou

t

clea

r st

atu

tory

au

tho

r-

ity

on

cer

tain

dig

ital

pro

du

cts

via

tax

on

com

mu

nic

atio

ns

ser-

vice

s. S

CR

11

7-3

29

. See

als

o S

C R

ev. R

ul.

03

-5;

SC R

ev. R

ul.

12

-1.

Tax

imp

ose

d w

/

ou

t cl

ear

stat

uto

ry

auth

ori

ty o

n c

er-

tain

per

son

s m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e vi

a

tax

on

co

mm

un

icat

ion

serv

ices

. SC

P.L

.R. 1

2-2

;

SCC

§ 1

2-3

6-9

10

(B)

(3);

SCR

11

7-3

29

.4k.

No

tax

liab

ility

rel

ief

for

selle

rs o

r p

urc

has

-

ers

rely

ing

on

DO

R

guid

ance

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. SC

C §

12

-36

-

13

10

(C).

Fu

ll cr

edit

fo

r

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. S

C R

ev. R

ul.

06

-4, 0

5-1

9-2

00

6.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. SC

Rev

.

Ru

l. 0

6-4

, 05

-19

-20

06

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

SCC

§§ 1

2-3

6- 9

0(2

)

(h),

-13

0.

Pu

rch

aser

can

ob

-

tain

sel

ler’

s as

sign

-

men

t o

f re

fun

d

clai

m t

o a

pp

ly

dir

ectl

y to

DO

R

for

refu

nd

. Form

ST-1

4 (

8/1

0).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. S

CC

§

12

-60

-80

(C).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

56

SOU

TH

DA

KO

TA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 5

9%.

No

mfg

. eq

uip

. ex

emp

tio

n f

or

M&

E u

sed

in m

fg. A

RSD

64

:06

:03

:23

; 64

:06

:03

:24

.

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

TP

P

that

bec

om

es a

n in

tegr

al p

art

of

oth

er

TP

P s

old

at

reta

il. S

DC

L 1

0-4

6-9

; AR

SD

64

:06

:03

:25

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

SDC

L

10

-45

-6.1

, -6

.2.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e n

ot

tax

ed a

t co

nsu

mer

leve

l. SD

CL

10

-45

-4,

-4.1

, -5

, -5

.2.

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. Ser

vice

s

tax

ed a

t co

nsu

mer

leve

l. SD

CL

10

-45

-2, -

6;

AR

SD 6

4:0

6:0

3:1

3.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

SDC

L 1

0-4

5-6

.1; A

RSD

64

:06

:01

:15

; sel

lers

allo

wed

120

day

s to

ob

tain

val

id

cert

s. o

n a

ud

it. S

DC

L 1

0-4

5-

61

.1.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

. AR

SD

64

:06

:01

:08

.01

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: 1.

5% o

f ta

x

du

e (c

app

ed a

t $7

0 p

er

retu

rn).

SDC

L 1

0-4

5-2

7.2

.

Dir

ect

pay

lim

ited

to

reta

ilers

wit

h a

t le

ast

$3

mill

ion

in a

nn

ual

pu

rch

as-

es. S

DC

L 1

0-4

6-6

7; A

RSD

64

:01

:01

:33

, 64

:01

:01

:34

.

269

loca

l tax

juri

sdic

-

tio

ns

(rat

io o

f 3,

027)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. SD

CL

10

-52

-4, -

52

A-3

. Lo

cals

use

th

e sa

me

tax

bas

e

as t

he

stat

e. S

DC

L

10

-52

-2.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/dor.s

d.g

ov/

Taxe

s/B

usi

nes

s_Ta

x-

es/N

ewsr

oom

/Ta

x_

Ra

tes/

.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

SD

CL

10

-45

-

2, -

2.4

.

Tax

imp

ose

d o

n a

per

-

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. S

DC

L 1

0-4

5-

1(1

4),

-2.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. SD

CL

10

-59

-27

.

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. SD

CL

10

-46

-6.1

,

-34

.1. F

ull

cred

it f

or

oth

er s

tate

s’ s

tate

, lo

cal

and

sim

ilar

tax

es. I

d.

Stat

e ac

cele

rate

s

cert

ain

leas

e p

aym

ents

.

Cre

dit

s o

ther

sta

tes’

tax

on

acc

el. l

ease

pay

-

men

ts. S

DC

L 1

0-4

6-6

.1,

-34

.1.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

SDC

L 1

0-4

5-3

0.

Pu

rch

aser

s re

-

qu

ired

to

ob

tain

refu

nd

s o

nly

fro

m

the

selle

r. SD

CL

10

-59

-24

.1, -

24

.2.

No

fal

se c

laim

s

act.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. L

ick

v. D

ah

l, 28

5 N

.W.

2d 5

94 (

S.D

. 197

9).

Co

nti

nge

nt

fee

aud

itin

g is

pro

hib

-

ited

. No

cu

rren

t

pri

vate

-co

ntr

act

aud

itin

g.

57

TE

NN

ESS

EE

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

0%.

Mfg

. eq

uip

. ex

emp

tio

n f

or

mac

hin

ery

nec

essa

ry t

o, a

nd

pri

mar

ily f

or,

fab

rica

tio

n

and

pro

cess

ing

of T

PP

fo

r sa

le t

o o

ther

s,

incl

ud

es p

ollu

tio

n c

on

tro

l fac

iliti

es a

nd

R&

D e

qu

ip. T

CA

§ 6

7-6

-20

6(a

).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

mat

e-

rial

s th

at c

om

e in

to d

irec

t co

nta

ct w

ith

man

ufa

ctu

red

pro

du

cts

and

are

co

n-

sum

ed w

ith

in 2

5 d

ays

of

pro

cess

ing

tho

se

pro

du

cts.

TC

R&

R 1

32

0-0

5-0

1-.4

0(2

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. S

er-

vice

s ar

e ta

xed

at

con

sum

er le

vel.

TC

A §

67

-6-2

05

(c)(

3).

Cab

le e

qu

ip.:

exem

pt.

TC

A §

67

-6-3

29

(a)

(15

). S

ervi

ces

are

tax

ed a

t co

nsu

mer

leve

l

wh

en t

he

char

ge is

> $

15 f

or

stat

e sa

les

tax

an

d w

hen

ch

arge

is >

$27

.50

for

loca

l

sale

s ta

x. T

CA

§ 6

7-6

-22

6, 6

7-6

-71

4.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

TC

A §

§ 6

7-6

-10

2(4

4)(

D).

Ele

ctri

city

an

d

gas

serv

ices

so

ld t

o c

on

sum

ers

are

tax

ed.

TC

A §

67

-6-1

02

(89

)(A

).

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

fo

r

resa

le. T

CR

&R

13

20

-5-1

-.78

,

-.68

. DO

R a

llow

s se

llers

120

day

s to

ob

tain

val

id e

xem

p-

tio

n c

erts

.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

No

ven

do

r co

mp

. ex

cep

t

a lim

ited

co

mp

. fo

r o

ut-

of-

stat

e se

llers

. TC

A §

67

-6-

50

9.

No

bro

ad-b

ased

dir

ect

pay

pro

visi

on

. h

ttps:

//tn

.gov

/

ass

ets/

enti

ties

/rev

enu

e/a

t-

tach

men

ts/s

ale

san

du

se.p

df.

298

loca

l sal

es t

ax

juri

sdic

tio

ns

(rat

io o

f

21,2

96).

Cen

tral

ad

min

. of

the

loca

l tax

es. T

CA

§§ 6

7-6

-70

2(a

)(1

),

-71

0(a

)(1

). Lo

cals

use

the

sam

e ta

x b

ase

as

the

stat

e; h

ow

ever

,

ther

e ar

e lo

cal o

pti

on

cap

s o

f $3

,200

per

arti

cle

of T

PP. T

CA

§§ 6

7-6

-70

2(a

)(1

),

-70

4(a

), -2

01

.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s o

r a

bo

un

dar

y

dat

abas

e.

htt

ps:

//w

ww

.tn

.gov

/

ass

ets/

enti

ties

/rev

-

enu

e/a

tta

chm

ents

/

taxl

ist.pdf.

Ass

oci

ate

SSU

TA

mem

ber

.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

TC

A §

67

-

6-2

33

.

Tax

imp

ose

d o

n a

per

-

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. T

CA

§ 6

7-

6-2

05

.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

r-

chas

ers

rely

ing

on

DO

R g

uid

ance

. TC

A §

67

-6-5

33

.

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

ited

to

use

tax

. TC

A §

67

-6-

50

7(a

). F

ull

cred

it f

or

oth

er s

tate

s’ s

tate

, lo

cal

and

sim

ilar

tax

es.

No

acc

el. l

ease

pay

-

men

ts b

ut

con

tin

ues

tax

on

cer

tain

leas

e

pay

men

ts u

sin

g o

rigi

n

loca

tio

n. T

CR

&R

13

20

-

05

-01

-.32

(2).

Cre

dit

s

oth

er s

tate

s’ t

ax o

n

acce

l. le

ase

pay

men

ts.

TC

A §

§ 6

7-6

-50

7(a

),

-31

3(f

); TC

R&

R 1

32

0-

05

-01

-.91

(1).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

TC

A §

67

-6-5

07

(d).

No

wri

tten

pro

-

cess

allo

win

g p

ur-

chas

ers

to o

bta

in

refu

nd

s fr

om

th

e

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

TC

A §

§ 6

7-6

-50

1,

50

2.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

TC

A §

4-1

8-1

03

(f).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. W

ick-

er v

. Com

mr.,

342

S.W

.3d

35

(Ten

n.

Ap

p. 2

010)

.; TC

A §

67

-6-5

38

.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

58

TE

XA

S

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 5

3%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

dir

ectl

y u

sed

or

con

sum

ed in

or

du

rin

g

the

actu

al m

fg. a

nd

dir

ectl

y m

akes

or

cau

ses

a p

hys

ical

or

chem

ical

ch

ange

. TTC

§ 1

51

.31

8(a

),(b

).

Mfg

. in

pu

ts e

xem

pti

on

allo

wed

fo

r TP

P

sold

an

d T

PP

use

d o

r co

nsu

med

du

rin

g

actu

al m

fg. a

nd

th

at d

irec

tly

mak

es o

r

cau

ses

a p

hys

ical

or

chem

ical

ch

ange

. TTC

§§ 1

51

.31

8(a

)(1

), (

2),

15

1.3

18

(b).

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

. TTC

§ 1

51

.31

86

. Bo

th s

ervi

ces

are

tax

ed o

n c

on

sum

er le

vel.

TTC

§

15

1.0

10

1(a

)(6

); 3

4 T

AC

§ 3

.34

4(b

).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le. T

TC

§

15

1.3

18

6(d

). S

ervi

ces

are

tax

ed a

t co

n-

sum

er le

vel.

TTC

§§ 1

51

.01

01

(a)(

6),

(a

)

(2);

34

TA

C §

§ 3

.34

4(b

), 3

.31

3.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

TTC

§ 1

51

.31

7. C

om

mer

cial

ser

vice

s

are

tax

ed a

t th

e co

nsu

mer

leve

l. TTC

§§

15

1.0

10

1(a

)(1

7),

15

1.3

17

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

TTC

§ 1

51

.05

4(b

); s

elle

rs

allo

wed

on

ly 6

0 d

ays

to

ob

tain

val

id c

erts

. on

au

dit

.

TTC

§ 1

51

.05

4(e

).

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

Val

id s

ales

tax

per

mit

nu

mb

ers

req

uir

ed o

n r

esal

e

cert

s.

Ven

do

r co

mp

.: 0.

5% o

f ta

x

du

e o

n a

tim

ely

retu

rn. T

TC

§ 1

51

.42

3. A

dd

itio

nal

1.2

5%

on

pre

pay

men

t am

ou

nt.

TTC

§ 1

51

.42

4.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts p

urc

has

ing

at le

ast

$800

,000

per

yea

r. TTC

§

15

1.4

17

(b).

TAC

§3

.28

8(b

)

(1).

1,65

3 lo

cal t

ax

juri

sdic

tio

ns

(rat

io o

f

15,2

12).

Cen

tral

ad

min

. of

the

loca

l tax

es. T

TC

§§ 3

23

.30

1. L

oca

ls

gen

eral

ly u

se t

he

sam

e

tax

bas

e as

th

e st

ate,

w/e

xce

pti

on

s. TTC

§§

32

1.2

07

, 32

1.2

08

,

32

3.2

07

.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s n

or

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/ww

w.c

om

ptr

ol-

ler.t

exa

s.go

v/ta

xes/

file

-pay/

edi/

sale

s-ta

x-

rate

s.ph

p.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

via

tax

on

info

rmat

ion

ser

vice

s.

TTC

§§ 1

51

.01

0,

15

1.0

09

, 15

1.0

10

1(a

)

(10

).

Tax

imp

ose

d w

/

ou

t cl

ear

stat

uto

ry

auth

ori

ty o

n a

per

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. T

exa

s C

om

p-

troller

’s L

ette

r N

o.

20

08

05

09

5L.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

r-

chas

ers

rely

ing

on

TX

Co

mp

tro

ller

guid

ance

.

Excl

ud

ing

volu

nta

ry

pre

pay

men

ts, n

o a

d-

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. TTC

§ 1

51

.30

3(c

);

34

TA

C §

3.6

1. F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

. 34

TAC

§ 3

.33

8(b

).

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. 34

TA

C

§ 3

.33

8(b

).

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. T

TC

§

15

1.4

26

(a),

(c)

.

No

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s (o

ther

than

lice

nse

d s

ell-

ers)

to

ob

tain

. 34

TAC

§ 3

.32

5.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Sern

a v

. H.E

. Bu

tt

Gro

cery

Co.

, 21

S.W

.3d

330

(Te

x.

Ap

p.—

San

An

to-

nio

199

9); T

.T.C

. §

11

2.0

55

.

No

cu

rren

t

con

tin

gen

t fe

e

aud

itin

g. S

tate

use

s

pri

vate

-co

ntr

act

aud

itin

g o

n a

n

ho

url

y b

asis

.

59

UTA

H

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

7%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

use

d f

acili

ty in

th

e m

fg. p

roce

ss t

o m

an-

ufa

ctu

re T

PP

fo

r sa

le w

ith

gre

ater

th

an a

3-ye

ar li

fe. U

AC

r.8

65

-19

S-8

5; U

C §

59

-12

-

10

4(1

4).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

raw

mat

eria

ls t

hat

bec

om

e an

ingr

edie

nt

or

com

po

nen

t p

art

of

a m

anu

fact

ure

d p

rod

-

uct

. U

C §

59

-12

-10

4(2

5).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t. U

C

§ 5

9-1

2-1

04

(61

). B

oth

ser

vice

s ta

xed

at

con

sum

er le

vel.

UC

§ 5

9-1

2-1

03

(1)(

b).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le. U

C §

§

59

-12

-10

4(6

1),

-10

2(1

29

). S

ervi

ces

are

tax

ed a

t co

nsu

mer

leve

l. U

C §

§ 5

9-2

6-

10

3(2

)(a

), -1

04

.5(1

).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. Ele

ctri

city

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed, w

/

resi

den

tial

use

tax

ed a

t a

low

er r

ate.

UC

§§ 5

9-1

2-1

03

(1)(

c), (

d).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

UA

C

r.86

5-1

9S-

23

. Sel

lers

allo

wed

at le

ast

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. U

C §

59

-12

-10

6(3

).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: 1.

31%

of

tax

du

e p

er m

on

th. U

C §

59

-12

-

10

8(2

)(c)

.

Dir

ect

pay

lim

ited

to

app

lican

ts w

ho

pu

rch

ase

>

$1.5

M p

er y

ear

of

item

s fo

r

3 ye

ars.

UC

§ 5

9-1

2-1

07

.1.

374

loca

l tax

juri

sdic

-

tio

ns

(rat

io o

f 7,

390)

.

Cen

tral

ad

min

. of

the

loca

l tax

es. U

C §

§

59

-12

-11

8(1

), -2

02

,

-40

3(4

), -7

03

(4).

Loca

ls u

se t

he

sam

e

tax

bas

e as

th

e st

ate.

UC

§§ 5

9-1

2-2

04

(6),

-40

1, -

70

3(1

)(a

).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

UC

§ 5

9-1

2-

10

3(1

)(m

).

Tax

gen

eral

ly im

po

sed

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

UC

§ 5

9-1

2-1

02

(11

3);

Uta

h P

.L.R

. No.

10

-01

1

(2/1

2).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

UT

C g

uid

-

ance

. UC

§§ 5

9-1

2-

12

5, -

21

6, -

40

6, -

70

7,

-80

8, -

11

04

, -1

30

4,

-14

05

.

No

ad

van

ce p

aym

ents

.

Cre

dit

no

t lim

ited

to

use

tax

. U

C §

59

-12

-

10

4(2

6).

Fu

ll cr

edit

fo

r

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. U

C §

59

-12

-

10

4(2

6).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. U

C §

59

-12

-

10

4(2

6).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

UC

§ 5

9-1

2-1

07

(10

)(e)

.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. h

ttp:/

/

tax.

uta

h.g

ov/

sale

s/sa

les-

tax-

re-

fun

d-r

e-

qu

est#

wh

oca

n-

subm

it.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

UC

§ 2

6-

20

-1 e

t se

q.

Cla

ss a

ctio

n s

uit

s

allo

wed

wit

h

limit

atio

ns.

UC

§

59

-1-3

04

.; B

luth

v. U

tah

Sta

te T

ax

Com

mn

., 54

P.3

d

1147

(U

tah

200

2).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

TE

XA

S

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 5

3%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

dir

ectl

y u

sed

or

con

sum

ed in

or

du

rin

g

the

actu

al m

fg. a

nd

dir

ectl

y m

akes

or

cau

ses

a p

hys

ical

or

chem

ical

ch

ange

. TTC

§ 1

51

.31

8(a

),(b

).

Mfg

. in

pu

ts e

xem

pti

on

allo

wed

fo

r TP

P

sold

an

d T

PP

use

d o

r co

nsu

med

du

rin

g

actu

al m

fg. a

nd

th

at d

irec

tly

mak

es o

r

cau

ses

a p

hys

ical

or

chem

ical

ch

ange

. TTC

§§ 1

51

.31

8(a

)(1

), (

2),

15

1.3

18

(b).

Wir

ed a

nd

wir

eles

s eq

uip

.: p

arti

ally

tax

able

. TTC

§ 1

51

.31

86

. Bo

th s

ervi

ces

are

tax

ed o

n c

on

sum

er le

vel.

TTC

§

15

1.0

10

1(a

)(6

); 3

4 T

AC

§ 3

.34

4(b

).

Cab

le e

qu

ip.:

par

tial

ly t

axab

le. T

TC

§

15

1.3

18

6(d

). S

ervi

ces

are

tax

ed a

t co

n-

sum

er le

vel.

TTC

§§ 1

51

.01

01

(a)(

6),

(a

)

(2);

34

TA

C §

§ 3

.34

4(b

), 3

.31

3.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

TTC

§ 1

51

.31

7. C

om

mer

cial

ser

vice

s

are

tax

ed a

t th

e co

nsu

mer

leve

l. TTC

§§

15

1.0

10

1(a

)(1

7),

15

1.3

17

.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

TTC

§ 1

51

.05

4(b

); s

elle

rs

allo

wed

on

ly 6

0 d

ays

to

ob

tain

val

id c

erts

. on

au

dit

.

TTC

§ 1

51

.05

4(e

).

MT

C e

xem

pti

on

cer

ts. m

ay

be

use

d.

Val

id s

ales

tax

per

mit

nu

mb

ers

req

uir

ed o

n r

esal

e

cert

s.

Ven

do

r co

mp

.: 0.

5% o

f ta

x

du

e o

n a

tim

ely

retu

rn. T

TC

§ 1

51

.42

3. A

dd

itio

nal

1.2

5%

on

pre

pay

men

t am

ou

nt.

TTC

§ 1

51

.42

4.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts p

urc

has

ing

at le

ast

$800

,000

per

yea

r. TTC

§

15

1.4

17

(b).

TAC

§3

.28

8(b

)

(1).

1,65

3 lo

cal t

ax

juri

sdic

tio

ns

(rat

io o

f

15,2

12).

Cen

tral

ad

min

. of

the

loca

l tax

es. T

TC

§§ 3

23

.30

1. L

oca

ls

gen

eral

ly u

se t

he

sam

e

tax

bas

e as

th

e st

ate,

w/e

xce

pti

on

s. TTC

§§

32

1.2

07

, 32

1.2

08

,

32

3.2

07

.

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s n

or

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/ww

w.c

om

ptr

ol-

ler.t

exa

s.go

v/ta

xes/

file

-pay/

edi/

sale

s-ta

x-

rate

s.ph

p.

No

t a

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts

via

tax

on

info

rmat

ion

ser

vice

s.

TTC

§§ 1

51

.01

0,

15

1.0

09

, 15

1.0

10

1(a

)

(10

).

Tax

imp

ose

d w

/

ou

t cl

ear

stat

uto

ry

auth

ori

ty o

n a

per

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. T

exa

s C

om

p-

troller

’s L

ette

r N

o.

20

08

05

09

5L.

No

tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

r-

chas

ers

rely

ing

on

TX

Co

mp

tro

ller

guid

ance

.

Excl

ud

ing

volu

nta

ry

pre

pay

men

ts, n

o a

d-

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. TTC

§ 1

51

.30

3(c

);

34

TA

C §

3.6

1. F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

. 34

TAC

§ 3

.33

8(b

).

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. 34

TA

C

§ 3

.33

8(b

).

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

bel

cred

it c

ard

s. T

TC

§

15

1.4

26

(a),

(c)

.

No

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s (o

ther

than

lice

nse

d s

ell-

ers)

to

ob

tain

. 34

TAC

§ 3

.32

5.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Sern

a v

. H.E

. Bu

tt

Gro

cery

Co.

, 21

S.W

.3d

330

(Te

x.

Ap

p.—

San

An

to-

nio

199

9); T

.T.C

. §

11

2.0

55

.

No

cu

rren

t

con

tin

gen

t fe

e

aud

itin

g. S

tate

use

s

pri

vate

-co

ntr

act

aud

itin

g o

n a

n

ho

url

y b

asis

.

60

VE

RM

ON

T

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 5

1%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

use

d o

r co

nsu

med

, dir

ectl

y an

d e

xcl

usi

ve-

ly, i

n m

fg. T

PP

fo

r sa

le o

r in

th

e m

anu

fac-

ture

of

oth

er m

ach

iner

y o

r eq

uip

., p

arts

,

or

sup

plie

s fo

r u

se in

th

e m

fg. p

roce

ss. 3

2

VSA

§ 9

74

1(1

4);

VC

R 1

.97

41

(14

)-4

.

Mfg

. in

pu

ts e

xem

pti

on

ap

plie

s to

TP

P t

hat

bec

om

es a

n in

gred

ien

t o

r co

mp

on

ent

par

t o

f, o

r th

at is

co

nsu

med

in m

fg. T

PP

for

sale

. Sa

les

of

fuel

s u

sed

dir

ectl

y o

r in

-

dir

ectl

y in

mfg

. are

als

o e

xem

pt.

32

VSA

§

97

41

(14

); V

CR

1.9

74

1(1

4)-

3, 1

.97

41

(34

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. B

oth

serv

ices

are

tax

ed a

t co

nsu

mer

leve

l.

32

VSA

§§ 9

70

1(9

)(H

), (

19

), 9

77

1(5

),

97

73

; VC

R 1

.97

71

(5)-

1.

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

32

VSA

§ 9

77

1(4

); V

CR

1.9

77

1(4

)-1

.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

Form

al R

uli

ng

12

-5, n

. 1(1

/30

/20

12

),

32

VSA

§§ 9

70

1(7

), 9

74

1(4

6).

Ele

ctri

city

and

gas

gen

eral

ly t

axed

to

co

mm

erci

al

use

rs, w

ith

mfg

. an

d a

gric

ult

ure

ex

emp

-

tio

ns.

32

VSA

§§ 9

70

1(7

), 9

74

1(2

6),

(27

), (

34

), 9

77

1(1

); V

CR

1.9

74

1(2

6)-

1,

(27

)-1

, (3

4)-

1.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

32

VSA

§ 9

74

5(a

); V

CR

1.9

74

5-

1; s

elle

rs a

llow

ed 1

20 d

ays

to o

bta

in v

alid

cer

ts. o

n

aud

it. V

CR

1.9

74

5-1

(C).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

. VC

R

1.9

74

5-1

(C).

Selle

rs n

ot

req

uir

ed t

o v

erif

y

exem

pti

on

acc

ou

nt

nu

m-

ber

s. F

orm

S-3

(0

9/1

3).

No

ven

do

r co

mp

.

Dir

ect

pay

per

mit

s p

rovi

ded

at t

he

Co

mm

issi

on

er’s

dis

-

cret

ion

. 32

VSA

§ 9

74

5(b

);

VC

R 1

.97

45

.2(B

).

33 lo

cal j

uri

sdic

tio

ns

(rat

io o

f 18

,962

). 2

4

VSA

§ 1

38

(a),

(b).

Cen

tral

ad

min

. of

the

loca

l tax

es. 2

4 V

SA §

13

8(c

). Lo

cals

use

th

e

sam

e ta

x b

ase

as t

he

stat

e. I

d.

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e b

ut

do

es

no

t h

ave

his

tori

cal

rate

s.

htt

p:/

/ta

x.ve

rmon

t.

gov/

bu

sin

ess-

an

d-

corp

/sa

les-

an

d-u

se-

tax.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n “

spec

-

ified

dig

ital

pro

du

cts.”

32

VSA

§§ 9

70

1(4

6),

97

71

(8).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Act

51

, 20

15

Vt.

S. 1

38

,

§ G

.8 (

eff.

7/1

/20

15

);

Ver

mon

t D

epa

rtm

ent

of Ta

xes,

Fa

ct S

hee

t

FS-1

08

4 (

08

/20

15

); 3

2

VSA

§ 9

70

1(1

9)(

I).

Tax

liab

ility

rel

ief

limit

ed t

o D

OT

gu

id-

ance

rel

atin

g to

loca

l

op

tio

n s

ales

tax

es. V

CR

1.1

38

(a)(

2)(

E).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. 32

VSA

§ 9

74

4(a

)

(3).

Fu

ll cr

edit

fo

r

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. 3

2 V

SA §

97

44

(a)(

3).

Stat

e ac

cele

rate

s

cert

ain

leas

e p

ay-

men

ts.

Cre

dit

s o

ther

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. 32

VSA

§ 9

74

4(a

)(3

);

Form

al R

uli

ng

00

-01

(1/5

/20

00

).

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o

pri

vate

-lab

el c

red

it

card

s32

VSA

§ 9

78

0;

VC

R 1

.97

80

(C).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. 3

2

VSA

§9

78

1, V

T

Form

62

0.

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

32

VSA

§

63

1(d

).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

61

VIR

GIN

IA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

0%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o T

PP

(in

clu

des

mac

hin

ery)

use

d d

irec

tly

in m

fg.

VC

§ 5

8.1

-60

9.3

(2)(

iii)

; 23

VA

C 1

0-2

10

-

92

0(A

)(3

).

Mfg

. in

pu

ts e

xem

pti

on

allo

wed

fo

r TP

P

(in

clu

des

fu

el)

that

is u

sed

or

con

sum

ed

in m

fg. V

C §

§ 5

8.1

-60

9.3

(2)(

i), (

ii);

23

VAC

10

-21

0-9

20

(A)(

1),

(2

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. B

oth

serv

ices

tax

ed a

t co

nsu

mer

leve

l. V

C §

58

.1-6

48

(A).

Cab

le e

qu

ip.:

exem

pt.

VC

§ 5

8.1

-60

9.6

(2).

Serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. V

C

§ 5

8.1

-64

8(A

).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. VC

§

58

.1-6

09

.3(2

)(v)

. Ele

ctri

city

an

d g

as

sold

to

co

nsu

mer

s ar

e ta

xed

. VC

§ 5

8.1

-

60

9.1

(3);

23

VA

C 1

0-2

10

-66

0.

“Go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

VC

§ 5

8.1

-62

3(A

); 2

3 V

AC

10

-

21

0-2

80

(A),

(B

); n

o r

ule

on

allo

win

g se

llers

at

leas

t 12

0

day

s to

ob

tain

val

id c

erts

. on

aud

it. F

ield

Au

dit

Gu

ide-

lin

es: C

erts

. of

Exe

mpti

on

,

pg.

4.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o

cap

ture

/ver

ify

exem

pti

on

acco

un

t n

um

ber

s.

Ven

do

r co

mp

.: V

ery

limit

ed

ven

do

r co

mp

. wh

ich

do

es

no

t ap

ply

to

sel

lers

w/>

$240

,000

in y

earl

y lia

bili

ty.

Dir

ect

pay

lim

ited

to

mfg

.,

min

e o

per

ato

rs a

nd

pu

blic

serv

ice

corp

ora

tio

ns.

VC

§

58

.1-6

24

(A).

163

loca

l tax

juri

sdic

-

tio

ns

(rat

io o

f 49

,086

).

Cen

tral

ad

min

. of

the

loca

l tax

es. V

C §

58

.1-6

03

.1. L

oca

ls u

se

the

sam

e ta

x b

ase

as

the

stat

e, e

xce

pt

foo

d

for

ho

me

con

sum

p-

tio

n is

no

t su

bje

ct t

o

loca

l tax

es. V

C §

58

.1-

60

5(B

), -6

06

(D).

Web

site

has

cu

rren

t

tax

rat

es b

ut

do

es n

ot

hav

e h

isto

rica

l tax

rate

s o

r a

bo

un

dar

y

dat

abas

e.

htt

p:/

/ww

w.ta

x.

virg

inia

.gov

/con

ten

t/

sale

s-a

nd-u

se-ta

x.

No

t a

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

VC

§

58

.1-6

09

.5(1

), -6

48

(C)

(vii

i).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Vir

gin

ia R

uli

ng

of

the

Com

mis

sion

er P

D 1

3-

23

6 (

12

/13

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

wri

tten

VD

T

guid

ance

.

Selle

rs w

ith

$2.

5M o

r

mo

re in

yea

rly

sale

s

mu

st m

ake

a Ju

ne

adva

nce

pay

men

t. V

C §

58

.1-6

15

.

Cre

dit

lim

ited

to

use

tax

. VC

§ 5

8.1

-61

1. F

ull

cred

it f

or

oth

er s

tate

s’

stat

e an

d lo

cal t

axes

.

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. 23

VAC

10

-21

0-8

40

; VC

§

58

.1-6

11

.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

VC

§ 5

8.1

-62

1.

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. R

eta

il

Sale

s a

nd U

se R

e-

fun

d P

roce

du

res

Gu

idel

ines

(7

/17

).

Fals

e cl

aim

s ac

t

excl

ud

es t

ax

clai

ms.

VC

§ 8

.01

-

21

6.3

(D).

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed.

Co

nti

nge

nt

fee

and

pri

vate

-co

n-

trac

t au

dit

ing

pro

hib

ited

. See

Cli

nch

fiel

d C

oa

l

Co.

v. R

obbin

s,

541

S.E.

2d 2

89

(Va.

200

1).

62

WA

SHIN

GT

ON

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 3

7%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o M

&E

wit

h a

use

ful l

ife

of

at le

ast

1 ye

ar a

nd

use

d d

irec

tly

in m

fg.,

R&

D, o

r te

stin

g.

RC

W 8

2.0

8.0

25

65

(1).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

pro

p-

erty

th

at b

eco

mes

an

ingr

edie

nt,

com

-

po

nen

t, o

r ch

emic

al u

sed

in p

roce

ssin

g.

Ch

emic

als

mu

st d

irec

tly

con

tact

ingr

e-

die

nts

. RC

W 8

2.0

4.0

50

(1)(

a)(

iii)

; WA

C

45

8-2

0-1

13

.

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le w

/

cert

ain

ex

emp

tio

ns.

RC

W 8

2.08

.986

. Bo

th

serv

ices

tax

ed a

t co

nsu

mer

leve

l. R

CW

82

.04

.05

0(5

).

Cab

le e

qu

ip.:

gen

eral

ly t

axab

le w

/

cert

ain

ex

emp

tio

ns.

RC

W 8

2.0

8.9

86

.

Cer

tain

cab

le s

ervi

ces

are

tax

ed a

t

con

sum

er le

vel.

RC

W 8

2.0

4.2

80

(1)(

f),

82

.04

.29

0, 8

2.0

4.2

57

, 82

.04

.19

2(1

1),

82

.08

.01

0(1

0),

82

.08

.02

08

1.

Elec

tric

an

d g

as e

qu

ip.:

gen

eral

ly t

ax-

able

, w/

exem

pti

on

s. R

CW

82

.08

.96

2,

82

.08

.96

3. E

lect

rici

ty a

nd

gas

so

ld t

o c

on

-

sum

ers

are

no

t ta

xed

. RC

W 8

2.0

8.9

50

,

82

.08

.02

6, 8

2.0

8.0

25

2.

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

RC

W

82

.08

.05

0(7

)(b);

sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. R

CW

82

.08

.05

0(7

)(b).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

.

Selle

rs n

ot

req

uir

ed t

o v

erif

y

the

exem

pti

on

acc

ou

nt

nu

mb

er.

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ith

a t

ax li

abili

ty o

f

$240

,000

fo

r th

e cu

rren

t

year

or

pu

rch

ases

of

mo

re

than

$10

M s

ub

ject

to

WA

sale

s an

d u

se t

ax. R

CW

82

.32

.08

7(2

)(a

).

375

loca

l tax

juri

sdic

-

tio

ns

(rat

io o

f 17

,932

).

Cen

tral

ad

min

. of

the

loca

l tax

es.

RC

W 8

2.1

4.0

50

(1),

82

.14

.05

0(2

). Lo

cals

use

th

e sa

me

tax

bas

e

as t

he

stat

e. R

CW

82

.14

.07

0.

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/dor.w

a.g

ov/

con

ten

t/a

bou

tus/

sta

-

tist

icsa

ndre

port

s/ti

d/

sta

tist

icsr

eport

s.a

spx-

?qu

ery=

his

tori

cal.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n

dig

ital

pro

du

cts.

RC

W

82

.04

.05

0(8

)(a

);

82

.04

.19

2; 8

2.0

8.0

20

.

Tax

gen

eral

ly im

po

sed

on

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

RC

W 8

2.0

4.0

50

(6)

(c)(

i).

No

gen

eral

tax

liab

ility

relie

f. A

vnet

, In

c. v.

Dep

’t o

f R

even

ue,

348

P.3d

127

3 (W

ash

. Ct.

Ap

p. 2

015)

.

No

ad

van

ce p

aym

ents

.

RC

W 8

2.3

2.0

45

(1).

Cre

dit

lim

ited

to

use

tax

. RC

W 8

2.1

2.0

35

.

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. R

CW

82

.12

.03

5.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts. R

CW

82

.12

.03

5.

DO

R p

osi

tio

n is

no

bad

deb

t d

edu

ctio

n a

pp

lies

to p

riva

te-la

bel

cre

dit

card

s, c

urr

entl

y b

ein

g

litig

ated

. Low

es v

. DO

R,

pen

din

g in

Co

urt

of

Ap

pea

ls, W

AC

45

8-2

0-

19

6(6

).

A p

urc

has

er w

ho

has

no

t re

ceiv

ed

a re

fun

d f

rom

th

e

selle

r m

ay f

ollo

w

the

pro

ced

ure

set

fort

h in

WA

C

45

8-2

0-2

29

(4)(

b)

to o

bta

in a

ref

un

d

fro

m D

OR

un

der

cert

ain

cir

cum

-

stan

ces.

Fals

e cl

aim

s ac

t

do

es n

ot

app

ly t

o

tax

es.

Cla

ss a

ctio

n s

uit

s

may

be

allo

wed

.

RC

W 8

2.3

2.5

25

.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

63

WE

ST V

IRG

INIA

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

4%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o s

ales

of

TP

P o

r se

rvic

es d

irec

tly

use

d o

r co

n-

sum

ed in

mfg

. WV

C §

11

-15

-9(b

)(2

).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

sal

es o

f TP

P

or

serv

ices

dir

ectl

y u

sed

or

con

sum

ed in

mfg

. WV

C §

11

-15

-9(b

)(2

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ex

emp

t, b

ut

pu

rch

aser

mu

st fi

rst

pay

tax

bef

ore

ap

-

ply

ing

for

refu

nd

wit

h T

ax C

om

mis

sio

ner

.

WV

C §

11

-15

-9(b

)(2

). B

oth

ser

vice

s n

ot

tax

ed a

t co

nsu

mer

leve

l. W

VC

§ 1

1-

15

-2(b

)(8

). H

ow

ever

, pre

pai

d w

irel

ess

serv

ices

su

bje

ct t

o t

ax. W

VC

§ 1

1-1

5-9

(b)

(13

).

Cab

le e

qu

ip.:

exem

pt.

WV

CR

§ 1

10

-

15

-9(9

.4.1

). S

ervi

ces

are

no

t ta

xed

at

con

sum

er le

vel.

WV

C §

11

-15

-8.

Elec

tric

an

d g

as e

qu

ip.:

par

tial

ly t

axab

le.

Elec

tric

ity

and

gas

so

ld t

o c

on

sum

ers

are

no

t ta

xed

. WV

C §

11

-15

-9(a

)(1

); W

VC

R

§§ 1

10

-15

-9(9

.2.1

), (

9.2

.2).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

WV

C

§ 1

1-1

5-6

. Sel

lers

allo

wed

at le

ast

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it.

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

. WV

C §

11

-15

B-2

4(a

)(3

).

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

No

ven

do

r co

mp

.

Dir

ect

pay

lim

ited

to

mfg

.,

pu

blic

uti

litie

s, t

ran

spo

rta-

tio

n, t

ran

smis

sio

n, a

nd

a f

ew

oth

er b

usi

nes

ses.

Form

CST

-25

0 (

07

/12

).

32 lo

cal t

ax ju

risd

ic-

tio

ns

(rat

io o

f 57

,906

).

Cen

tral

ad

min

. of

the

loca

l tax

es.

WV

C §

§ 7

-22

-12

(d),

-11

(d),

8-1

3C

-4(e

). Lo

-

cals

use

th

e sa

me

tax

bas

e as

th

e st

ate.

WV

C

§§ 8

-13

C-4

(c)(

1).

Web

site

has

cu

r-

ren

t ta

x r

ates

an

d a

bo

un

dar

y d

atab

ase

bu

t d

oes

no

t h

ave

his

tori

cal r

ates

. htt

p:/

/

tax.

wv.

gov/

Bu

sin

ess/

Sale

sAn

dU

seTa

x/Lo

-

calS

ale

sAn

dU

seTa

x/

Page

s/Lo

calS

ale

sAn

-

dU

seTa

x.a

spx.

Full

SSU

TA m

emb

er.

No

tax

imp

ose

d o

n

dig

ital

pro

du

cts.

Wes

t

Vir

gin

ia S

tate

Ta

x-

abil

ity

Ma

trix

ver

sion

20

15

.2.

No

tax

imp

ose

d

on

per

son

mer

ely

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

WV

C §

11

-15

-9(a

)(2

1)

(B);

WV

CR

§ 1

10

-15

-

76

.1.2

.

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

T

guid

ance

. WV

C §

11

-15

B-3

6(a

).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. WV

C §

11

-15

A-1

0a

(a).

Cre

dit

no

w p

rovi

ded

fo

r

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es. W

VC

§

11

-15

A-1

0a

(a);

Ma

t-

kovi

ch v

. CSX

Tra

ns-

port

ati

on

In

c. 2

38 W

.

Va.

238

, 793

S.E

. 2d

888

(201

6).

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’

tax

on

acc

el. l

ease

pay

men

ts. W

VC

§

11

-15

A-1

0a

(a);

WV

CR

§§ 1

10

-15

-43

.1, -

12

9.1

,

-12

9.7

.3.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

WV

C §

11

-15

B-2

7(c

).

No

wri

tten

pro

-

cess

allo

win

g p

ur-

chas

ers

to o

bta

in

refu

nd

s fr

om

th

e

stat

e w

/ou

t go

ing

thro

ugh

th

e se

ller.

No

fal

se c

laim

s

act.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

64

WIS

CO

NSI

N

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 4

2%.

Mfg

. eq

uip

. ex

emp

tio

n c

ove

rs M

&E

use

d

excl

usi

vely

an

d d

irec

tly

by

a m

fg. i

n m

fg.

WS

§§ 7

7.5

4(2

), (

2m

), (

30

)(a

)(6

).

Mfg

. in

pu

ts e

xem

pti

on

co

vers

raw

mat

eri-

als

that

bec

om

e an

ingr

edie

nt,

com

po

nen

t

par

t, o

r is

co

nsu

med

or

des

tro

yed

. WS

§

77

.54

(2).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. W

S §

77

.54

(46

m).

Bo

th s

ervi

ces

tax

ed a

t co

n-

sum

er le

vel.

WS

§ 7

7.5

2(2

)(a

)(5

)(a

m).

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e ta

xed

at c

on

sum

er le

vel.

WS

§ 7

7.5

2(2

)(a

)(1

2).

Elec

tric

an

d g

as e

qu

ip.:

gen

eral

ly t

axab

le,

w/

mfg

. ex

emp

tio

n. E

lect

rici

ty a

nd

gas

sold

to

co

nsu

mer

s ar

e su

bje

ct t

o t

ax,w

/

exce

pti

on

s. W

S §§ 7

7.5

1(2

0).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts.

WA

C

§ T

ax

11

.14

(4)(

b).

Sel

lers

allo

wed

120

day

s to

ob

tain

valid

cer

ts. o

n a

ud

it. W

AC

§

Tax

11

.14

(4)(

b).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed

. WA

C §

§

Tax

11

.14

(2)(

a)(

3),

(b).

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 0.

5% o

f

liab

ility

(ca

pp

ed a

t $1

,000

per

rep

ort

ing

per

iod

). W

S §

77

.61

(4)(

c).

Dir

ect

pay

allo

wed

wh

en

“en

ou

gh p

urc

has

es a

re

tax

able

… t

o ju

stif

y th

e

exp

ense

of

regu

lar

aud

its

by

the

dep

artm

ent”

. WS

§

77

.52

(17

m)(

b)(

3).

70 lo

cal t

ax ju

risd

ic-

tio

ns

(rat

io o

f 81

,243

).

Cen

tral

ad

min

. of

the

tax

es. W

S § 7

7.7

6(1

).

Loca

ls g

ener

ally

use

s

the

sam

e ta

x b

ase

as t

he

stat

e. W

S §§

77

.71

(1),

(4

).

Web

site

has

cu

rren

t

tax

rat

es a

nd

a b

ou

nd

-

ary

dat

abas

e b

ut

do

es

no

t h

ave

his

tori

cal

rate

s. h

ttps:

//w

ww

.

reve

nu

e.w

i.go

v/fa

qs/

pcs

/ta

xra

tes.

htm

l#tx

-

rate

2.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n

dig

ital

pro

du

cts.

WS

§

77

.52

(1)(

d).

Gen

eral

ly, n

o t

ax

imp

ose

d o

n a

per

son

mer

ely

acce

ssin

g

pre

-wri

tten

co

mp

ute

r

soft

war

e. W

is. D

ept.

of

Rev

., Sa

les

an

d

Use

Ta

x Tr

eatm

ent

Com

pu

ter

- Ha

rdw

are

,

Soft

wa

re, S

ervi

ces

(5)

(A)

(eff. 1

0/0

9).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

aser

s

rely

ing

on

DO

R g

uid

-

ance

. WS

§ 7

7.5

9(9

n)

(a),

(b).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. WS

§ 7

7.5

3(1

6).

Full

cred

it f

or

oth

er

stat

es’ s

tate

an

d lo

cal

tax

es. W

isco

nsi

n D

ept.

Rev

. Ta

x B

ullet

in N

o.

15

7 (

7/0

8).

No

acc

el. l

ease

pay

-

men

ts. C

red

its

oth

er

stat

es’ t

ax o

n a

ccel

.

leas

e p

aym

ents

. WS

§

77

.58

5(2

).

Bad

deb

t d

edu

ctio

n

app

lies

to p

riva

te-la

-

bel

cre

dit

car

ds.

WS

§

77

.58

5(1

).

Pu

rch

aser

s ca

n

ob

tain

ref

un

ds

fro

m t

he

stat

e w

/

ou

t go

ing

thro

ugh

the

selle

r. W

S §

77

.59

(4)(

a).

No

fal

se c

laim

s

act.

Cla

ss a

ctio

n s

uit

s

no

t al

low

ed. W

S §

80

3.0

8(1

).

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

65

WY

OM

ING

EX

EM

PT

ION

FO

R

BU

SIN

ESS

IN

PU

TS

SALE

S TA

X

AD

MIN

IST

RA

TIO

NLO

CA

L SA

LES

TA

X A

DM

IN.

SIM

PLI

FIC

AT

ION

&

TR

AN

SPA

RE

NC

YFA

IR T

AX

PA

YM

EN

T A

DM

IN.

FAIR

AU

DIT

/R

EFU

ND

P

RO

CE

DU

RE

S

OT

HE

R

ISSU

ES

B2B

sal

es t

ax: 5

8%.

Mfg

. eq

uip

. ex

emp

tio

n li

mit

ed t

o m

ach

in-

ery

use

d d

irec

tly

and

pre

do

min

antl

y in

mfg

. WS

§§ 3

9-1

5-1

05

(a)(

viii

)(O

), 3

9-1

6-

10

5(a

)(vi

ii)(

D).

Mfg

. in

pu

ts e

xem

pti

on

lim

ited

to

ingr

e-

die

nts

an

d c

om

po

nen

ts o

f TP

P b

ein

g

man

ufa

ctu

red

. WS

§§ 3

9-1

5-1

05

(a)(

iii)

(A),

39

-16

-10

5(a

)(ii

i)(A

).

Wir

ed a

nd

wir

eles

s eq

uip

.: ta

xab

le. B

oth

serv

ices

are

tax

ed a

t co

nsu

mer

leve

l. W

S

§ 3

9-1

5-1

03

(a)(

i)(c

).

Cab

le e

qu

ip.:

tax

able

. Ser

vice

s ar

e n

ot

tax

ed a

t co

nsu

mer

leve

l. W

S § 3

9-1

5-

10

3(a

)(i)

(A)&

(B).

Elec

tric

an

d g

as e

qu

ip.:

tax

able

. Ele

ctri

city

and

gas

so

ld t

o c

on

sum

ers

are

tax

ed. W

S

§ 3

9-1

5-1

03

(a)(

i)(E

).

No

“go

od

fai

th”

req

. im

po

sed

wh

en a

ccep

tin

g ce

rts;

sel

l-

ers

allo

wed

120

day

s o

n t

o

ob

tain

val

id c

erts

. on

au

dit

.

WD

RR

ch

. 2 §

7(b

)(ii

i).

MT

C a

nd

SSU

TA e

xem

pti

on

cert

s. m

ay b

e u

sed.

Selle

rs n

ot

req

uir

ed t

o

veri

fy e

xem

pti

on

acc

ou

nt

nu

mb

ers.

Ven

do

r co

mp

.: 1.

95%

of

the

firs

t $6

,250

an

d 1

% o

f th

e

rem

ain

der

(ca

pp

ed a

t $5

00

per

mo

nth

). W

S § 3

9-1

5-

10

7(b

)(xi

).

Dir

ect

pay

lim

ited

to

ap

pli-

can

ts w

ho

mak

e ta

xab

le

pu

rch

ases

in t

he

stat

e to

tal-

ing

> $

5M p

er y

ear.

WD

RR

ch. 2

§ 6

(a).

23 lo

cal t

ax ju

risd

ic-

tio

ns

(rat

io o

f 24

,505

).

Cen

tral

ad

min

. of

the

loca

l tax

es. W

S §§

39

-15

-20

2(a

), (

c),

39

-16

-20

3(a

). Lo

cals

use

th

e sa

me

tax

bas

e

as t

he

stat

e. W

S §§ 3

9-

15

-10

3, -

10

5, -

20

2(a

),

-20

3(a

)(i)

(E),

-20

5,

39

-16

-10

3, -

20

3(a

)

(i)(

E).

Web

site

has

cu

rren

t

and

his

tori

cal t

ax

rate

s, a

nd

a b

ou

nd

ary

dat

abas

e.

htt

p:/

/rev

enu

e.w

yo.

gov/

Exc

ise-

Tax-

Div

i-

sion

/sa

les-

use

-ta

x-

rate

s.

Full

SSU

TA m

emb

er.

Tax

imp

ose

d o

n d

igit

al

pro

du

cts.

WS

§ 3

9-1

5-

10

3(a

)(i)

(P).

No

tax

imp

ose

d o

n

a p

erso

n m

erel

y

acce

ssin

g p

re-w

ritt

en

com

pu

ter

soft

war

e.

Wyo

min

g Sa

les

an

d

Use

Ta

x P

ubli

cati

on

-

Com

pu

ter

Sale

s a

nd

Serv

ices

(re

v. 8

/14

).

Tax

liab

ility

rel

ief

for

selle

rs a

nd

pu

rch

as-

ers

rely

ing

on

DO

R

guid

ance

. WS

§ 3

9-1

5-

10

4(g

).

No

ad

van

ce p

aym

ents

.

Cre

dit

lim

ited

to

use

tax

. WS

§ 3

9-1

6-1

09

(d)

(iii

). Fu

ll cr

edit

fo

r

oth

er s

tate

s’ s

tate

an

d

loca

l tax

es.

No

acc

el. l

ease

pay

men

ts. N

o c

red

it

agai

nst

oth

er s

tate

s’ t

ax

on

acc

el. l

ease

pay

-

men

ts.

Bad

deb

t d

edu

ctio

n

do

es n

ot

app

ly t

o p

ri-

vate

-lab

el c

red

it c

ard

s.

WS

§ 3

9-1

5-1

07

(a)(

x).

No

wri

tten

pro

cess

allo

win

g

pu

rch

aser

s to

ob

-

tain

ref

un

ds

fro

m

the

stat

e w

/ou

t

goin

g th

rou

gh t

he

selle

r. W

DR

R c

h. 2

§ 8

(b).

No

fal

se c

laim

s

act.

No

kn

ow

n u

se o

f

clas

s ac

tio

n s

uit

s.

No

cu

rren

t

con

tin

gen

t fe

e o

r

pri

vate

-co

ntr

act

aud

itin

g.

66

The Council On State Taxation (COST) is a nonprofit trade association consisting of approximately 550 multistate corporations engaged in interstate

and international business. COST’s objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.

©2018 Council On State Taxation122 C Street, NW, Suite 330, Washington, DC 20001

Phone: (202) 484-5222 • Fax: (202) 484-5229 • www.cost.org

Documents

THE BEST AND WORST OF SALES TAX ADMINISTRATION...THE BEST AND WORST OF SALES TAX ADMINISTRATION APRIL 2018 by Karl Frieden & Fred Nicely1 1 Karl Frieden is COST’s Vice President