So Amazon collects sales tax for me?


Amazon collects sales tax on most of the items sold directly by their company, and now they are starting to collect taxes on items sold by third party sellers. This means you don’t need to remit sales tax in certain states- places like Amazon and eBay are doing it for you!

In this guide we’ll run down the major points, address common questions and help you change your settings, so Amazon collects the sales tax instead of you.

Where Amazon Collects Sales Tax for their products

Currently, here are all of the places Amazon collects sales tax for their own items:
read more

Illinois State Sales Tax- A Quick Guide for Businesses

The State Spotlight Series

Illinois state sales tax rate is 6.25%. However, always remember that is the state rate. It does not include any local jurisdictions and can be as high as 11% in some places in Illinois.

Illinois does make it a bit easier with the rate look up tool you can find directly on their website.

Illinois State Sales Tax Due Dates

The 20th of the every month is when the taxes are due for Illinois for monthly remittance. When you apply for a tax ID number in IL, they notify you about your frequency of filing requirements. Also, as you begin selling in the state, they’ll also notify you depending on your average sales if your filing requirements change. read more

African-American Accountants

Black History Month Series

In honor of black history month, I am combining my love of numbers with my love of history to bring you biographies of African-American CPAs. As pioneers in their field, it wasn’t all about numbers. These men and women helped to bring more opportunities to African American communities and more value to the education African-Americans had access to.

First up on our list of biographies is John Cromwell.

Early Life

John Cromwell Jr. was born in Washington DC in 1883. His family was significantly established in the DC area. John Cromwell Sr. practiced as an attorney and teacher, and he held the title of chief examiner for the United States Postal Service. Also, his sister graduated from Yale University with a Ph.D. John Cromwell Jr continued the family tradition of higher education,  studying at Dartmouth University. “He graduated from Dartmouth as the best student in science in the class of 1906.” (nabainc.org) read more

Idaho State Sales Tax – A Quick Guide For Businesses

State Spotlight Series ID

Idaho state sales tax rate is 6%. However, like many other states, there are several city and local jurisdictions that could have their own tax rates added on.

Economic Nexus?

No. Technically Idaho doesn’t have economic nexus, so sales alone won’t trigger sales tax obligations in the state. However, their click-through nexus laws are worth noting because of the lower than average threshold. Instead of $100,000 or even $250,000, the Idaho requirement is a comparatively low 10,000.

Though, the requirements aren’t as bad as they first seem. In addition to the amount requirement, there is a connection requirement. A business has to be connected to an Idaho-based seller. This could be anything as simple as a link to your store on the Idaho seller’s website, or something more obvious, such as them installing materials on your behalf. read more

Hawaii State Sales Tax – A Quick Guide for Businesses

State Spotlight Series HI

Hawaii state sales tax actually does not exist. Instead Hawaii has something they refer to as a GET, or a general excise tax. Sales taxes are all about collecting money and taxes from the consumer. Excise taxes are about taxing the actual business entity. However, businesses can pass on the GET to the customers, charging them just like most states have businesses charge sales tax.

Economic Nexus?

Yes.
Hawaii’s economic nexus law applies if you sell more than 100,000 dollars worth of merchandise or if you have more than 200 separate transactions. Both the transaction and the amount limit have to happen in the previous calendar year. The bill is not retroactive and came into effect July 1, 2018. Like many states, Hawaii did not waste anytime after the Wayfair decision. read more

Georgia State Sales Tax- A Brief Guide For Businesses

State Spotlight Series GA

The Georgia State Sales tax rate is 4%. However, like just about every other state, there are local tax rates that can vary significantly. Georgia’s sales tax and use chart is a useful guide for individual jurisdictions.

The phone number to talk to a representative about your sales tax questions is 877-423-6711.

Economic Nexus?

Yes.
Add another one to your list, remote sellers. Recently Georgia became yet another state with active Wayfair like Economic Nexus laws. The threshold is 250,000 dollars in gross revenue or 200 transactions. Keep in mind some states have ‘and’ clauses, some states have ‘or’. Georgia is an ‘and’ state so just the 250,000 dollars in sales won’t trigger nexus, you have to have the transaction amount too. The law became effective on January 1, 2019. read more

Pennsylvania Craft Beer Tax

Starting in July crafts will cost more at Pennsylvanian breweries

The Pennsylvania craft beer tax, beginning July 2019, means next time you go to your favorite brewery, bring change. According to the official bulletin, the craft tax is not new. The Department of Revenue points out it is simply officially reminding tap rooms they are subject to it as well. The old/new rule is frustrating consumers and brewers alike.

Clearing up the confusion

In a six page bulletin the Pennsylvania DOR sums it up as:

“In essence, manufacturers can now act as a traditional retailer when selling their products to the public for on-premises consumption, and distributors when selling their products to the public for off-premises consumption.” read more

Florida State Sales Tax – A Quick Guide For Businesses

State Spotlight FL

Florida State Sales Tax rate is 6.0% at the state level. However, with all of the local tax jurisdictions it can be as high as 8.5%

Economic Nexus?

No. As of right now, eCommerce sellers can rest easy for Florida sales.  They do not have any laws on the books matching the South Dakota/Wayfair tax decision. However, that doesn’t mean with more time Florida won’t adopt one. It seems every month another state is adding themselves to the list. In the mean time, keep checking back with us and we will let you know as soon as any of that changes. read more

eCommerce Tax Deductions

How to get the most out of filing with the IRS

eCommerce tax deductions process can be a bit more complicated than their physical location counterparts. That doesn’t mean you should miss a single deduction.

The Internet

Generally, you can deduct almost all internet related expenses. This includes the things that are direct to your business, like domain and website hosting services and also things like consulting a webmaster and paying someone to build or maintain your website.

As an eCommerce business, you can sometimes even deduct your home internet services. However, you can’t deduct 100% of the bill unless you can prove the service is only used for work. Still, if you can prove on paper that you use a percentage it for work, you can claim that percentage. read more

Jesse B Blayton Sr.

Accountant, Radio Show Owner and Professor

Early Years

Jesse B Blayton was born in Oklahoma, in late 1897 and went to school in Chicago. After graduating, he attended the University of Chicago. Then, Blayton moved to Atlanta, Georgia, to be an accountant. In 1928, Blayton became the first African American Certified Public Accountant in Georgia, and only the fourth nationwide. After receiving his certification, he taught at the University of Atlanta as a Professor. Eventually, his persistence led him to become the president of a bank in Atlanta, but he wasn’t done. read more