Sales tax is not required if the business does not have a nexus, or connection, with a jurisdiction. However, a 2018 Supreme Court case, South Dakota v. Wayfair, made it easier to establish a nexus. A business establishes a connection if it has a physical presence in a state. This phys...
Who pays sales tax? The consumer pays the sales tax to the retailer in addition to the cost of the item or service. The retailer is responsible for collecting and paying the tax to the local or state governments. Which states don’t have sales tax?
To further illustrate how sales tax rates can vary within state lines, consider thestate of California. In Annapolis in Sonoma County the tax rate 8.5 percent. Meanwhile, Antelope in Sacramento County applies a tax rate of 7.75 percent. In Ashland, which is in Alameda County, the tax rate j...
Each state has different rules for how exactly nexus can be determined, and there are many ways in which you can have nexus in California. Nexus through physical presence When is it applicable? While considering sales tax nexus in California, a direct physical presence can be established through...
Form 1099-G is used to report government payments like unemployment compensation and state or local income tax refunds. Learn what details are included on the form, when you should expect to receive it, and how to report this income on your tax return.
States want to collect tax from in-state sellers, out-of-state sellers that reach economic nexus, and buyers who purchase goods from out-of-state without paying sales tax, in order to “level the playing field,” as California says.
Before the Tax Cuts and Jobs Act was signed into law in late 2017, there was no cap on how much you could claim as a state and local tax (SALT) deduction. Now the deduction is limited to $10,000, regardless of whether the taxpayer claims state income or state sales tax. Say, for...
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The use tax is usually the same rate as the local/state sales tax. The difference lies in how it's accounted for and who calculates it. The use tax is self-assessed and remitted by the end consumer, so if you make a purchase and are liable for your state's use tax, it's up to...
Having an employee in a state can constitute a nexus, as can having anaffiliate, such as a partner website that directs traffic to your business' page in exchange for a share of profits. This scenario is an example of the tensions betweenecommerceand sales taxes. For example, New York h...