February 2023 Sales and Property Tax Changes to Watch For

Closing the door on transaction thresholds? How do you know if your business is required to register for sales tax in another state? In many states, all it takes is meeting a transaction threshold. If Senate Bill 30 is enacted, South Dakota may join the eight states that have eliminated economic nexus transaction thresholds (along with the 13 states that never created one to begin with). Learn more about state efforts to simplify sales tax.

SOC it to data security. Avalara now provides System and Organization Controls 2 (SOC 2) compliance for its core products, including Avalara AvaTax, Avalara Managed Returns, Avalara Returns for Accountants, Avalara Managed Returns for Accountants, and Avalara Exemption Certificate Management (ECM). These compliance controls mean Avalara is intent on  protecting sensitive customer data.

The tricky 10. Not all states are equal when it comes to sales tax filing and remittance; some states have multiple filing schedules, some call for special reporting requirements, and some allow county governments to administer local taxes on top of state tax. Here are the top 10 tricky states when it comes to sales tax filing and remittance.

Check out the state of sales tax for a roundup of governor-proposed sales tax changes, potential tax cuts or hikes across a number of states, and taxation trends we have our eyes on this year.

Do you owe taxes in The Last Frontier? Nearly 50 cities and boroughs in Alaska tax remote sales or direct-to-consumer alcohol shipments. If your business has met the economic nexus threshold but has not yet registered with the Alaska Remote Seller Sales Tax Commission, participation in Alaska’s new voluntary disclosure program might be for you. 

Experiencing exemption apprehension? Exemption certificate management is tricky. Each state has its own rules, filing deadlines, and certificates to keep track of the sales and purchasers that are exempt from sales tax. Avalara produces a state-by-state guide that can help.

What’s in a name? If you’ve done business in New Mexico, you may be familiar with the state’s gross receipts tax. But if House Bill 323 is passed, the Land of Enchantment might start calling it a sales and use tax. The tax itself won’t change much, but it might be easier for out-of-state sellers to understand.

Solving resale certificate complications. If you buy goods specifically to resell them, you’ve probably had to fill out a resale certificate. Similarly, if your business sells goods to be resold, you’ll have to collect and manage the certificates from your customers. It sounds straightforward, but different state requirements can make certificate management complicated. Here’s our state-by-state guide to getting it right.

Untangling online sales tax. Should you be collecting sales tax on online sales? Yes. Well, maybe. Sometimes. Listen, it’s complicated, but Avalara’s experts break it down for you in this post.

Convenient returns can mean returning customers. Retail returns are an inevitable (and sometimes costly) part of doing business. But it is possible to create a policy that works for both you and your customers — not to mention the tax authorities. 

Land of 10,000 lakes … and one new fee. In January, 2024, Minnesotans may notice an extra fee on their takeout orders, grocery deliveries, and online purchases. Learn more about the proposed new Colorado-style retail delivery fee on taxable goods delivered by a motor vehicle.

Success at the point of sale. Are you entering tax rates into your POS system manually? There’s another way. Learn how real-time tax calculations can reduce risk and provide a better customer experience.

An expensive mistake. If you don’t have a system in place to manage exemption certificates, it could be costing you. From fines and penalties to lost customers, these are some ways certificate noncompliance can hurt your cash flow.

From the property tax desk

Tax assessment deep dive. What’s the difference between a tax assessment and property tax? And how do you appeal a tax assessment if you feel you’ve been taxed unfairly? We dive into tax assessments and show you how Avalara Property Tax can help you stay on top of property taxes.

Smart assessments. Have you ever gotten a property assessment notice that seemed a little high? Learn about the various commercial property valuation methods and how to make sure your property is appraised accurately.

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Lindsey Raker is a content writer at Avalara. She’s interested in the ways tax legislation affects peoples’ everyday lives and in finding out how many puns she can sneak into a post before the editing team puts a stop to it.