Posts by Tina Chunn
New York Rules that Marketplace Facilitator is Required to Collect Sales Tax
Despite not having a marketplace facilitator statute at the time of the ruling, the state ruled that a marketplace facilitator’s participation in the transaction was enough for the state to classify it as a “vendor” that is obligated to collect sales tax. By Tina M. Chunn, SALT Senior Manager As we seek to keep up with…
Read MoreSeveral States Address Rules on the Proper Use of Resale Certificates
The rules regarding when it is appropriate to provide a resale certificate are not always clear, and businesses that issue resale certificates incorrectly can be subject to sales tax liabilities. By Tina M. Chunn, SALT Senior Manager Resale certificates are used by retailers to purchase goods for resale in its present form or as a component…
Read MoreWashington Advises on Tax Treatment of Alarm Monitoring Services
As changes in technology intersect with changing sales tax rules, businesses may find themselves subject to new or different sales tax compliance obligations. By Tina M. Chunn, SALT Senior Manager As technological progress continues at its rapid pace, two trends are occurring that impact sales tax. First, many services are becoming more automated and require less…
Read MoreIllinois Provides Guidance on Computer Software Licensing Agreement Signature Requirement
Illinois’ state tax exemption for software licenses requires, among other things, that there be a signed written agreement between the vendor and the customer, which can be a difficult requirement to satisfy for downloadable software transactions. By Tina M. Chunn, SALT Senior Manager Determining the taxability of computer software continues to be one of the areas…
Read MoreCalifornia Issues Guidance on Throwback Rule for Sales Factor Apportionment
The most significant issue when applying the throwback rule is understanding when a taxpayer is “not taxable” in the other (i.e., destination) state. By Tina M. Chunn, SALT Senior Manager For companies that file in multiple states and therefore apportion income, computing each state’s apportionment factor is often very complicated due to the various rules…
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