The SALT Shaker - August 2016

August 1, 2016

By Keith Habel, CPA Partner, SALT Practice Leader

Illinois

New General Letter Rulings Issued: The Illinois Department of Revenue has issued general letter rulings discussing the following topics: sales tax nexus, activities, refunds and lawsuits; sales taxability on installation of security systems; taxability of drop shipments; sales tax rates for food and candy; and sales taxability of out-of-state taxpayer leasing trailers within Illinois. General Information Letters ST-16-0006-GIL, ST-16-0007-GIL, ST-16-0008-GIL, ST-16-0011-GIL, ST-16-0012-GIL

Iowa

New Policy Letters Issued: The Iowa Department of Revenue has issued new policy letters on the following topics: sales taxability of screen printing consumables as well as equipment used and its installation and servicing; sales tax exemption for sale of wood chippers and stump grinders; applicability of sales tax on veterinary services or products; applicability of sales tax to commercial recycling; and sales tax applicability of commercial kitchen rental. Policy Letters 16300034, 16300037, 16300038, 16300039, 16300040

Louisiana

Use Tax Notice Must be Provided by Remote Sellers: Effective July 1, 2017, remote sellers who are not registered or are not required to register or collect Louisiana sales or use tax and who make sales or provide services to Louisiana customers exceeding $50,000 in a calendar year, must begin notifying its Louisiana customers that 1) a purchase is subject to use tax unless it is specifically exempt, and 2) that there is not an exemption for purchases made over the Internet, by catalog or by other remote means. An annual notice must be sent by remote sellers to each of its Louisiana customers by January 31^st of each year. An annual statement for each purchaser must also be filed with Louisiana by the remote seller by March 1^st of each year. H.B. 1121 Single-Sales Factor Apportionment and Market-Based Sourcing Enacted: Effective for tax periods beginning on or after January 1, 2016, Louisiana has adopted a single-sales factor apportionment and market based sourcing. Revenue Bulletin No. 16-038

Michigan

Flow-through Entity Withholding Amended: For tax years beginning after July 1, 2016, Michigan will no longer require flow-through entities to withhold on their nonresident individual and corporate members. H.B.5131

Wisconsin

Disaster Relief Publication: The Wisconsin Department of Revenue has issued a new publication discussing exemptions available to out-of-state businesses and employees who are performing disaster relief work in Wisconsin. Under certain conditions, exemptions from registration, franchise/income tax filing and use tax on certain property exist. Out-of-state businesses are, however, responsible for sales tax or use tax on taxable sales and purchases in Wisconsin. Publication 411 For more information or assistance on state and local tax (SALT), call 888-556-0123, email info@honkamp.com or submit our online form.