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The retail industry is faced with the responsibility to respond to constant changes from various sources, from consumer trends to political and economic impacts. Sales and use tax changes have a tremendous affect on every business’ ability to remain compliant with every jurisdiction. Check out the Top 10 Retail Tax Changes of 2014, as of Jan. 22, 2014.
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TOP 10Retail State Tax Changes
of 2014As of Jan. 21, 2014
Legal Disclaimer: The information provided in this document is for informational purposes only. By publishing this document, Taxware, LLC is providing information of a general nature which should not be construed by the reader as specific tax or legal advice or services. Taxware, LLC recommends that you engage a qualified professional before taking any action that affects your business.
OhioRetail sales of and the storage, use or other consumption of digital products on or after Jan. 1, 2014 is subject to sales and use tax.
Items that will now be taxed include audiovisual products, audio products and books delivered electronically.
North Carolina
Newspapers sold by street vendors and newspaper carriers making door-to-door deliveries are now subject to a sales tax.
Phoenix, Arizona
Decreased Tax Rate on Food for Home Consumption to 1%Jan. 1, 2014
North Carolina
North Carolina has enacted a privilege tax on service contracts.
California
Bag FeesA number of cities in California have enacted ordinances to ban the use of plastic bags and impose a fee on paper bags used in retail stores.
In January, the following cities have started imposing fees:
• Jan. 1, 2014 – El Cerrito, Richmond and San Pablo, 5¢• Jan. 15, 2014 – Pittsburg, 10¢• Jan. 27, 2014 – Campbell, 10¢
Jan. 2014
North CarolinaThe legislature increased the sales tax for manufactured and modular homes from 2 percent to 4.75 percent, effective Jan. 1, 2014.
MarylandEnergy Star Sales Tax HolidayFeb. 15 – 17, 2014
Qualifying Energy Star products will be exempt from sales and use tax in Maryland.
Maryland’s Shop Energy Weekend will exempt the purchase of air conditioners, clothes washers, clothes dryers, furnaces, heat pumps, standard size refrigerators, compact fluorescent light bulbs, dehumidifiers, boilers, and programmable thermostats which exceed or meet Energy Star requirements.
North CarolinaThe annual August Tax-free weekend for back-to-school shopping and November Energy Star sales tax holiday have been eliminated.
Severe Weather Preparedness Sales Tax Holiday
Alabama
Feb. 21 – 23, 2014Alabama will hold their 3rd Annual Severe Weather Preparedness Sales Tax Holiday.
The holiday will give shoppers the opportunity to purchase certain severe weather preparedness items free of state and certain local sales tax when the cost is $60 or less, or $1,000 or less for portable generators and power cords.For details, see: www.revenue.alabama.gov/salestax/WPSalesTaxHol.htm
North CarolinaThere is now an additional 6.75 percent sales tax on tickets for movies, concerts and sporting events and some other entertainment.
E911 FeesOver the past few years, using the point-of-sale E-911 fee has become an increasingly popular revenue producing tool.
These fees require retailers to collect and remit a determined fee, either percentage based or a specific monetary amount, at the retail point-of-sale and used to fund computer software and hardware upgrades for public safety answering systems which help locate cellular callers who dial 911.
The following states added or revised their fees:
• Arizona 0.80%
• Arkansas $0.65
• Idaho 2.5%
• Minnesota $0.84
• Nebraska reduced rate from 1.1% to
1.0%
• North Dakota 2.0%
• Ohio 0.5%
• Washington $0.95
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