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The latest on sales tax on shipping charges (part 1)

TaxConnex

When items in a shipment are exempt from sales tax in a given state, so is the cost of shipping. Connecticut, Georgia, Michigan, North Dakota, South Carolina, Tennessee, Texas, Vermont, Washington, West Virginia and Wisconsin follow this rule.

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Sales Tax on Shipping: When Does it Apply?

TaxConnex

When only some of the contents of a shipment are taxable, the shipping charges must be pro-rated in Minnesota, New Jersey, North Carolina, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Washington and Wisconsin (where a “reasonable allocation” is required). Taxability can also depend on how the bill/invoice is presented.

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What’s new in sales tax?

TaxConnex

States with the most burdensome tax regime using those criteria are Hawaii, Washington, New Mexico, Nevada and Arkansas while Alaska, Montana, Oregon, Delaware and New Hampshire are the least burdensome. Under the statute, a provider of software-as-a-service acts as a serviceman. Pandemic effect.

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