Arkansas State Sales Tax

State Spotlight Series AR

Arkansas State Sales Taxes can be complicated, but contacting Arkansas with your questions doesn’t have to be. For your sales tax questions, dial 501-682-7104. A human picks up, without any automated messages.

Economic Nexus?

No economic nexus in Arkansas. However, they do have something called affiliate and click through nexus. Repairs, installations, and links on websites made by Arkansas residents can trigger it. The residents just must be working under the same company, using company vehicles for the installation, or simply have an agreement to refer customers to the out of state business. If those references, including website links, make the out of state company more than $10,000 that company must remit Arkansas state sales tax. Click here for more information. read more

Arizona State Sales Tax – A Quick Guide for Businesses

State Spotlight Series AZ

Arizona State Sales Tax is third in our State Spotlight Series. Here is a general guide for what you need to know as a seller working with Arizona.

Rather talk to a human? Call 602-255-3381. Though, the Arizona Department of Revenue warns against long hold times, they do have a few tips to shorten your wait.

Economic Nexus?

No. Arizona is in the minority of the states that don’t have any rules on economic nexus. Still, you can still have to remit sales tax as an out of state business, known as Transaction Privilege Tax or TPT. read more

Alaska State Sales Tax – A Quick Guide for Businesses

State Spotlight Series AK

Alaska State Sales Tax: None
Income Tax: None

Though a state sales tax doesn’t actually exist, there are still a variety of taxes found throughout the state. In fact, a pack of cigarettes could cost you almost ten dollars after the sin tax is applied in Anchorage. But the good news is that since there are no state taxes, there are no complicated nexus rules!

So where does Alaska get it’s income?

We can’t discount that Alaska is the third highest proven oil reserve in the country; it’s Alaska’s biggest income source. And while Anchorage’s cigarette sin tax brought in over 22,500,000 dollars, it certainly doesn’t pay for everything. The income is taken from a mixture of tourism, natural resources, and local sales tax. read more

The Shutdown

Will the 2019 Government Shutdown Affect my Tax Return?


UPDATE: The IRS confirmed it WILL process tax returns during the government shutdown.

Read more here

The short answer is maybe. The long answer is more complicated.

As of January 7, we are on day seventeen of the 2019 government shutdown.  Currently, less than 10,000 of the almost 80,000 IRS employees are still going to work. These employees are showing up without pay, and without the ability to take any leave. They are maintaining security, processing disaster relief information, and preventing data loss.
read more

Alabama State Sales Tax- A Quick Guide for Businesses

The State Spotlight Series

The Alabama state sales tax rate for personal property is 4.0%. This includes all food items, even groceries that most states either tax at a lower rate or don’t tax at all.

Keep in mind, local jurisdictions have their own rates. Cities and counties can add on their own taxes, upping the rate you need to collect.

If you know the address, but not any other information you can use EcomTax’s rate look up tool.

Bypass the machine. To talk to a person, call 334-242-1170 and press 3 for an Alabama state sales tax representative. Then follow the prompts. read more

Wayfair Supreme Court Decision

Economic Nexus At A Glance


What Happened:

To understand the Wayfair Supreme Court decision, we first have to go back 26 years. In 1992, the Supreme Court heard a case between a company known as Quill and the state of North Dakota. North Dakota wanted Quill, a company with no direct ties to ND, to remit sales tax. The supreme court decided since Quill had customers but no offices there, it didn’t have to collect sales tax. No presence, no tax.

In 2018, South Dakota set out to challenge this ruling. The state pointed out the ruling did not factor in internet retailers. In South Dakota’s view, Quill was obsolete. It simply wasn’t the same world. Additionally, South Dakota claimed with Quill in place the explosion of online purchases caused a massive loss of state revenue. read more

State Sales Tax Help

Introduction:

There are almost 10,000 sales tax jurisdictions in the United States. Each with their own set of definitions for what is and isn’t taxable.

Worse, if you run your own business, doing taxes is a job that doesn’t get you paid. Time invested in navigating sales taxes usually produces a hassle, not a profit.

Which is why the right state sales tax help and knowledge is so important.

State Sales Tax Help- Part One

5 Sales tax facts

  1. There is no national sales tax, and the federal level of government rarely gets involved in monitoring and regulating sales tax laws.
  2. Sales tax rates are determined by the states and local municipalities 45 states and Washington DC impose some sort of sales tax on their residents and businesses.
  3. Many counties and local municipalities also charge an additional sales tax. With all of the state and local codes, there are almost 10,000 different tax jurisdictions in the United States.
  4. Rates and what governments consider taxable all differ from place to place. Food is a big topic of conversation when it comes to sales tax. Certain states don’t charge a sales tax on most foods. Other states charge a reduced sales tax of 1 or 2 percent on foods. Then some states have 3 pages of regulations on what is ‘food’ and what is ‘candy’.
  5. Something called a use tax is considered ‘complementary’ to sales tax. If you buy something from another state, or from online, and don’t pay a tax on it, you more than likely are still expected to pay your state those due taxes. You have to figure out what the tax rate for that specific item is, then you have to get the correct form and fill it out. Mail the form in with a check written from you directly to the part of your state government that handles taxes

Keep in Mind:

This also applies to municipalities. If you have an additional city or county tax, you have to get that separate form, fill it out, and send it into the correct local office. (This doesn’t happen more than it does.)

Not only are you expected to pay more money for something already in your possession, but it is also almost impossible to enforce.

Cue South Dakota v Wayfair and the birth of states taxing online marketplaces.

It’s easier to monitor and compel businesses to remit taxes than it is to track every individual who may have bought something off the internet. read more