might not be charged on purchases your company makes for a variety of reasons, including a lack of nexus on the part of your supplier, an erroneous application of an exemption certificate, or even poor sales tax compliance by a supplier.
All but the very smallest retailers would have to calculate and remit sales taxes
to nearly 10,000 separate jurisdictions, each with its own tax rate and list of exemptions.
According to an estimate from the National Conference of State Legislators, states missed out on $11.4 billion in sales taxes
With the new deal, the company will start collecting sales taxes
on July 1.
The owners of a small take-out deli were exempt from sales taxes
because there is no sales tax on food that can't be consumed on the premises.
There are states, however, that don't require such an adjustment for sales taxes
Additionally, it provides special expensing and depreciation schedules for small businesses, implements new S corporation provisions, allows individuals a deduction for state sales taxes
paid, reforms international tax provisions and provides tax breaks for farmers, restaurant owners and manufacturers.
Furthermore, Tennessee's relatively high overall sales taxes
and the emergence of mail-order shopping (and now Internet sales) may have increased cross-border shopping and caused further erosion in the sales tax base.
Traditionally, when sales taxes
are too high, consumers have had the option, though inconvenient, of shoping in another state.
* ISPs: Succeeded in convincing Congress to bar states from imposing sales taxes
on Internet access or creating multiple or discriminatory taxes.
If this procedure is not followed, the purchaser can be held liable for the sales taxes
due on the transfer of the assets and any previous sales tax liabilities of past operations up to the extent of the purchase price.