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 [...]

2405, 2017

Sales & Use Tax Refund Opportunities: Durable Medical Equipment

By |May 24th, 2017|Categories: Medical Industry|

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 “Sales & Use Tax Refund Opportunities: Durable Medical Equipment”

2004, 2017

Southern California Medical Marijuana Dispensaries be on the Look-out

By |April 20th, 2017|Categories: Medical Marijuana|

In recent months, our firm has seen a significant increase in the Board of Equalization’s (BOE) audit activities as they relate to medical marijuana dispensaries, and even more specifically as they pertain to the Los Angeles area.  The BOE audit staff has been targeting the local dispensaries in its sales tax audit activities and has been performing audits that are not being completed in accordance with the BOE’s established audit procedures.  The result of the BOE’s renewed focus on medical marijuana dispensaries, in conjunction with their unorthodox and inappropriate audit procedures, is leaving many tax compliant marijuana dispensaries with undeserved, [...]

508, 2016

McClellan Davis Efforts Lead to Change for California Board Hearing Policies

By |August 5th, 2016|Categories: Compliance, Sales Tax Policy|

On May 24, 2016, Jesse W. McClellan, Managing Partner, testified before the Members of the State Board of Equalization (Board) at the California Taxpayers’ Bill of Rights Hearings in Sacramento, California to address a variety of concerns he had with Board policies. Part of his testimony focused on procedural problems with appeals cases that are scheduled for hearings before the elected Members of the Board. Specifically, Mr. McClellan stressed the need to establish guidelines for appeals cases that are removed from the hearing calendar by Board staff. A hearing before the elected Members of the Board is the final [...]