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1712, 2018

Hospitals & Medical Services: Proposed Changes to CA Reg 1503

By |December 17th, 2018|Categories: Medical Industry|

Last month I participated in an Interested Parties Meeting (IPM) with the California Department of Tax and Fee Administration (CDTFA) to discuss proposed revisions to California Code of Regulations, title 18 (Regulation), section 1503- Hospitals and other Medical Service Facilities, Institutions and Homes for the Care of Persons.  I want to share my thoughts on the proposed revisions because they will have a material impact on hospitals and other medical facilities’ ability to claim refunds of tax related to their Medicare Part A sales. Currently, Regulation 1503, subdivision (b)(2), contemplates a transaction where title to the tangible personal property (TPP) [...]

307, 2018

Supreme Court’s Wayfair Decision Will Force More Remote Sellers to Collect Sales and Use Tax

By |July 3rd, 2018|Categories: Compliance, Interstate Commerce, Sales Tax Law|

Last month we reported that a pending U.S. Supreme Court case, South Dakota v. Wayfair, Inc. (U.S. S.Ct., Dkt. No. 17-494, 06/21/2018), might expand the rights of states to impose their sales and use taxes on out-of-state sellers.  The Court’s June 21, 2018 Wayfair decision has done exactly that. The decision overturned the physical presence requirement, a 51-year-old standard for determining when remote sellers must collect sales or use taxes on behalf of states other than their own.  Now, a state may impose registration and collection requirements even if there is no physical presence inside the destination state in which [...]

1105, 2018

Supreme Court May Change the Nation Sales and Use Tax Landscape in the Wayfair Case!

By |May 11th, 2018|Categories: Nexus, Sales Tax Law|

If you’re doing business in more than one state, you’d best pay attention to a pending U.S. Supreme Court case entitled South Dakota v. Wayfair (2017 S.D. 56, 901 N.W.2d 754, cert. granted, U.S. S. Ct., Dkt. No. 17-494, 01/12/2018).  The outcome will either clarify or expand states’ rights to impose their sales or use taxes on out-of-state sellers. Background Every state with a sales tax also has a complementary use tax.  The purpose of the use tax is to capture any transaction that normally would have been subject to sales tax but somehow escaped the tax, generally because the [...]

602, 2018

California Adopts New Vapor Tax Regulations

By |February 6th, 2018|Categories: Sales Tax Policy, Tobacco|

The California Department of Tax and Fee Administration (CDTFA) recently adopted emergency Regulations 4076, Wholesale Cost of Tobacco Products and 4077, Tobacco Product Manufacturer.  The regulations interpret and implement the changes made to the Cigarette and Tobacco Products Tax Law (CTPTL) under Proposition 56, California Healthcare, Research and Prevention Tobacco Tax Act of 2016.  The new law increases the excise tax on cigarettes by $2.00 per pack which results in an “equivalent” increase in tax for other tobacco products (OTP), e.g., cigars, chewing tobacco, snuff (and now Vapor Products).  The new rate set for OTP of 65.08% is significantly higher than the prior rate of [...]

3009, 2017

New Medical Equipment Tax Refund Opportunities in Missouri

By |September 30th, 2017|Categories: Medical Industry, Refunds|

This month, James R. Dumler, a senior sales tax specialist at McClellan Davis and featured contributor at Sales Tax Support provides a multistate sales and use tax update related to the medical industry. Sales Tax Support publishes articles written by experts and thought leaders in the specialized field of sales and use tax with small and medium sized business owners in mind. Visit salestaxsupport.com to read James’ informative article “New Medical Equipment Tax Refund Opportunities in Missouri”