State-by-State Physical Nexus Criteria
Sales and use tax nexus is a very fluid and evolving area of tax law, and although Congress has historically been considered to be the sole gatekeeper to change, states have recently become emboldened in their efforts to unilaterally lower nexus barriers. For example, on March 22, 2016, South Dakota passed S.B. 106 which effectively establishes an economic nexus standard. The law requires remote sellers to register and collect use tax on its sales into South Dakota if its sales into the state exceed $100,000 annually, or it makes 200 or more separate sales into the state; notwithstanding a complete lack of [...]
How You Present a Sales Tax Appeal Can Make a Big Difference in the Outcome
The Board of Equalization (Board) has an appeals system for tax assessments which allows anyone to represent taxpayers, or they can represent themselves. The system is designed so that Board attorneys and auditors involved in the appeals process are unbiased, make an independent review of the case, and get a fair outcome for the taxpayer and Board. This does not guarantee, however, that the taxpayer will always get the best results. This article addresses the steps that should be taken to help ensure your appeal is successful. While it focuses on California appeals, the principles apply to appeals in other [...]
Fundamentals of Nexus
I commonly work with clients that have nexus questions. These days those questions often involve some of the more technical aspects of nexus, such as affiliate or click-through nexus. But, even where I’m addressing some of the more technical aspects of sales and use tax nexus, I always try to make sure our clients understand where it all started, which is the subject of this article. Having a clear understanding of the genesis of sales and use tax nexus, will better enable you to address fact-specific nexus questions that relate to your business operations. State sales and use taxes have [...]
Board of Equalization Aggressively Pursuing Independent Auto Dealers for Additional Sales Tax with a New, Questionable Audit Methodology
This month, Mitchell Stradford, a senior sales tax specialist at McClellan Davis and featured contributor in the April issue of the Independent Automobile Dealers Association of California (IADAC) magazine, shares how the California Board of Equalization is aggressively pursuing independent auto dealers for additional sales tax with a questionable new audit methodology. IADAC is the only association that provides representation before regulatory agencies and advocates fair legislation on behalf of independent dealers and their customers. Click HERE for your free consultation. Visit www.iadac.org to read Mitchell's informative article “Board of Equalization Aggressively Pursuing Independent Auto Dealers for Additional Sales Tax with a [...]
California Board of Equalization Members Weigh in on Pending Medical Marijuana Legislation
On March 30, 2016 the California Board of Equalization (BOE) held a public discussion regarding pending medical marijuana legislations SB 987 and AB 2243. Representing the legislature was Senator Mike McGuire’s Chief of Staff, Jason Liles. The central focus of the discussion was SB 987’s introduction of a 15% tax on sales of medical marijuana that would be collected by retailers. The anticipated revenue to be generated by this tax is estimated to be $251 million dollars with the caveat that retailers would be in 100% compliance. The bill is set to go into effect on January 1, 2018. Mr. [...]