Electronic tax

In case you missed it: Last week in Allyn Tax News

New York sales and use tax on IT management and monitoring services

A taxpayer’s management and monitoring services provided to protect against information technology cyberattacks were determined to be subject to sales tax by the Tax Appeals Tribunal and an administrative law judge. The services were determined to be taxable due to their protective nature. Services include a managed firewall, as well as configuring client software to prevent unsecured connection with threats. Once a threat has been discovered, the taxpayer notifies the client via an online portal or by calling. The services are similar to an alarm system, as customers are notified of malicious activity so that changes can be made.

Changes to Missouri Sales and Use Tax Due Dates

The Missouri Department of Revenue has changed the MO Regs code. Title 12 §10-104.030 regarding filing requirements for sales and use tax purposes. The new Missouri sales and use tax return will be due on the last day of the month following the reporting period. Previously, under the filing frequency requirements of some taxpayers, the due date was the 20th of the following month.

Alabama: new sales and use taxes imposed

The AL Department of Revenue announced that two cities have changed their sales and use tax rates:

– The City of Sheffield: From 1 March 2022 the current S&U tax will increase from 3.5% to a new rate of 4%.

– The City of South Vinemont: Effective March 1, 2022, an S&U tax will be levied at the rate of 0.5% for general rate items, admissions to entertainment venues, etc.

Companies should integrate these new rates on all sales made in these municipalities, with immediate effect.

Application of Kentucky Sales and Use Tax to Motor Vehicle Body Shops

The rules regarding the taxation of sales made by motor vehicle body shops were amended by the Kentucky Department of Revenue and were put into place on February 1, 2022. Service charges for the installation of taxable repair parts are subject to sales and use tax. An example of this would be the necessary collection and remittance of sales tax on the sale of a bumper, as well as any service, installation, or labor charges associated with the sale. If the sale of tangible personal property, digital property or service is not taxable, the installation or labor costs associated with the sale will also not be subject to the tax. If a resale certificate is provided for the sale of a front grill, any service, installation or labor charges associated with the sale and installation of the front grill are also exempt from sales tax. sale and use.

Top 5 property tax mistakes to avoid

Businesses that own property or tangible business inventory located in the United States are required to file annual returns of such assets with local tax authorities. Reported data includes asset cost and year of acquisition, as well as inventory value for states that require inventory.

Many people don’t realize that property tax must be paid on business assets each year the assets are used, even if they have been written off for income tax purposes. Tax authorities (counties, cities, and states) assign a value to assets based on their specific category and the jurisdiction’s depreciation schedules. The entire return is assessed with a taxable value, to which a jurisdiction-specific tax rate is applied. This determines the annual professional property tax due.

Amended Kentucky Newspaper Publishing Regulations

Effective February 1, 2022, the Kentucky DOR amended regulation, 103 KAR 30:250, to add a definition of “manufacture” as it relates to the publication of newspapers. The storage, use, or other consumption of tangible personal property for use in the manufacturing process of newspaper publications is exempt from state sales and use tax.

South Dakota – Crane Operating Tax

The winter bulletin published by the South Dakota Department of Revenue contains reminders regarding the taxation of crane operations. The bulletin explains how fees charged by businesses to customers are subject to sales tax. The rental of a crane without an operator is subject to sales tax depending on the place of pick-up or delivery since it is the rental of equipment. Rental of a crane with an operator is also subject to sales tax if the contract stipulates the moving of items to a designated location without any connection, installation or attachment of real estate. However, if the contract includes connections, installations or the affixing of real estate, the contractor’s excise tax applies.

For more information, the 2022 South Dakota Winter Newsletter can be found here: https://dor.sd.gov/media/lshgztje/winter2022newsletter.pdf