New MO Law Reduces Telecom Sales Tax Uncertainty
New Missouri law reduces telecom sales tax uncertainty over past IBM/Mastercard court decision on what is manufacturing
Before leaving office, Missouri Gov. Eric Greitens recently signed S.B. 768 [www.senate.mo.gov/18info/BTS_Web/Bill.aspx?SessionType=R&BillID=69486704] into law, which modified two important provisions relating to the taxation of telecommunications companies.
Definition of manufacturing: “Fixing” the earlier IBM/Mastercard court decision
One of those provisions relates to sales and use tax exemptions for certain manufacturing and the use or consumption of energy for manufacturing. The new law specifies that the term “product” includes telecommunications services and the term “manufacturing” includes the production, or production and transmission, of telecommunications service. According to the Missouri legislature, these definitions were the original legislative intent and legislatively “fixes” the Missouri Supreme Court’s decision in IBM Corporation v. Director of Revenue, 491 S.W.3d 535 (Mo. banc 2016) to the extent that such decision was inconsistent with such definitions and certain longstanding previous court decisions. This was a big relief to telecom companies that were faced with a lot of uncertainty on how to apply sales tax exemptions to its capital purchases.
See forthcoming additional analysis of this new law from Deloitte in an upcoming Multi-State Briefing newsletter[newsletters.usdbriefs.com/2018/Tax/STM/180608_11.html?elqTrackId=7df691e04f514705b1799d64803159c1&elq=b26ad13c1bcf472f8c72479cc0c061c1&elqaid=48495&elqat=1&elqCampaignId=9771]
One-time property tax assessment election
The second provision creates a new one-time property assessment election for Telecoms. The new law will let telephone companies choose a personal property tax assessment method that speeds up the depreciation of such items as vehicles, computers and equipment.
Definition of manufacturing
In the IBM/Mastercard decision, the Missouri Supreme Court said that IBM could not get a tax refund for software and hardware it sold to MasterCard, finding that MasterCard’s use of the products to process credit card transactions was not manufacturing under a statutory exemption, despite IBM’s longstanding reliance on previous court decisions that held that it was manufacturing.
Mastercard purchased the hardware and software from IBM, and used the equipment to authorize and process debit and credit card transactions. The process involves several steps, a customer presents credit or debit card to merchant, the merchant sends the transaction information to their bank, the bank sends that information to Mastercard, Mastercard sends the bank credit card information and the bank decides whether to accept or decline the transaction. Mastercard summarizes amounts due from each bank and issues settlement statements, and the banks remit funds to Mastercard. IBM charged Mastercard Missouri use tax on the hardware and software used in this process.
Before the Missouri Supreme Court, IBM argued that Mastercard’s activities of transmitting approvals and disapprovals, summarizing data reports for banks, and communicating this information is the manufacturing of a new product. IBM based its arguments on two Southwestern Bell cases previously decided by the Missouri Supreme Court, in which the court ruled that equipment used to transmit voices is considered exempt manufacturing equipment.
The Missouri Supreme Court determined that, to qualify for the exemption, the equipment and materials must be used during the manufacturing, processing, compounding, mining or producing a product, and that application of its prior decisions in Southwestern Bell was too broad. The court then reviewed the nature of the activates in question, which it construed as information analysis and transmission services, and found that the equipment did not qualify as manufacturing equipment.
“The Missouri Supreme Court had confused taxpayers, particularly in the telecommunications and data processing fields, by issuing the 2016 decision after holding through many previous decisions over more than a decade that such activities were manufacturing,” said Ray McCarty, president of Associated Industries of Missouri. “I am very proud of the hard work of members of the AIM Tax Committee who diligently sought resolution of this situation since the errant decision was rendered and am very happy that we have finally passed this important legislation. We thank Sen. Hoskins and Rep. T. J. Berry for their hard work in ensuring these industries can continue to operate as they have for many years,” said McCarty. [a4gb.wordpress.com/2018/05/10/fix-of-mo-supreme-court-decision-two-years-in-the-making-finally-passes]
One-time property tax assessment election
Beginning January 1, 2019, S.B. 761 will allow telephone companies to make a one-time election of whether to have their property assessed in the same manner as railroads, as in current law, or in the same manner as railroads for property consisting of land and buildings and under a depreciation schedule for all other forms of property. The new law will let telephone companies choose a personal property tax assessment method that speeds up the depreciation of such items as vehicles, computers and equipment. By allowing telephone companies to choose a different way to be taxed, it is expected to drastically reduce revenue for school districts.
However, if a school district whose operating levy is at the tax rate ceiling receives less tax revenue from a specific telephone company as a result of such telephone company selecting the alternate assessment method, it may by resolution impose a fee to be paid by the telephone company until such time as the school district receives voter approval to raise its tax operating levy. The fee shall be calculated as described in the act. A school district’s receipt of such fee shall not be used in determining the amount of state aid that a district receives under the school foundation formula, in determining the amount that may be collected under a property tax levy, or for any other purpose. The State Tax Commission will include information in its annual report on the difference in assessed value for any telephone company that is assessed under the provisions of this act. The provisions of this law will expire when no school district is eligible to collect a fee.
Conclusion
As this recent legislation in Missouri shows, Telecom taxation is complex and ever-changing, and the failure to stay current with these complexities and changes can be costly.
Visit www.SureTax.com to find out more details on how to stay compliant and efficient.
| STATE | RULE |
| ALABAMA |
Sales tax is imposed on persons, firms, and corporations in the business of selling tangible personal property at retail or in the business of conducting or operating places of amusement or entertainment. ( Ala Code Sec. 40-23-2 ; Ala Code Sec. 40-12-222 ) The tax is collected by the seller from their customer and remitted directly to the state. All sales of tangible personal property are retail sales except those defined as wholesale sales. Occasional sales (see Occasional Sales, Including Mergers) do not constitute taxable sales. |
| ALASKA | Alaska does not impose a statewide sales and use tax. However, local taxes may be imposed. |
| ARIZONA | The Arizona transaction privilege tax is imposed directly on the seller of tangible personal property or on the seller of services under a number of business classifications. |
| ARKANSAS | Arkansas sales tax is an excise tax levied on the gross proceeds or gross receipts from sales of the following:
|
| CALIFORNIA | California sales tax is applied to the gross receipts from the sale at retail of tangible personal property in the state. Sales tax generally does not apply to services. With specific exceptions, leases of tangible personal property in California are treated as “sales.”
California sales tax must be collected by every retailer for the privilege of making retail sales of tangible personal property in the state. |
| COLORADO | Sales tax is imposed on the sale of tangible personal property at retail and is applicable whether the transaction is between a licensed vendor and a vendee or between private parties. ( Sec. 39-26-104(1)(a), C.R.S. ; Reg. 39-26-102.16 ) Sales tax is imposed only on those services specifically made subject to tax. ( Sec. 39-26-104, C.R.S. ; Spec. Reg. 40 ) Although tax is imposed on the purchaser, if a transaction involves a licensed vendor it is the vendor’s duty to add the tax to the sales price and remit the tax to the state. If no licensed vendor is involved in the transaction or the vendor fails to collect the tax, the purchaser must pay the tax directly to the Department of Revenue. Also, if the vendor fails to collect the tax from the purchaser, the Department of Revenue may assess the tax due against the vendor or the purchaser at its option. ( Reg. 39-26-104.1(a) ) |
| CONNECTICUT | The Connecticut sales tax is imposed on all sales made by retailers, lessors, or service providers. The tax must be collected on the total sales price and remitted to the state. Transactions that are subject to the sales tax are:
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| DELAWARE |
No general sales tax in Delaware. The taxes grouped in this division are license or privilege taxes, which are in addition to the numerous licenses, and additional license fee on gross receipts of occupational licensees. They resemble sales and use taxes found in many states in that the taxes are measured by gross receipts. However, the taxes contain no provision for passing the tax on to consumers. Also discussed are the fee imposed on the sale of new tires and the retail crime fee. |
| DISTRICT OF COLUMBIA | Sales tax is imposed on vendors who make retail sales of taxable tangible personal property and specified taxable services. Vendors must collect the tax from purchasers and remit it to the District. A purchaser who fails to pay sales tax to a vendor owes a debt to the vendor in the amount of the unpaid tax, and the vendor can sue the purchaser to recover the debt. |
| FLORIDA | Florida sales tax is imposed on all dealers engaged in the retail sale, lease, or rental of tangible personal property or taxable services in the state. Florida sales tax is imposed at a percentage of the gross receipts and must be remitted to the state by the dealer after it is collected from the purchaser or consumer. The tax is added to the sale price and must be separately stated. The tax is a debt from the consumer to the dealer until paid. |
| GEORGIA |
Georgia sales tax is imposed on gross receipts from retail sales, leases and rentals, and certain services. The tax is paid by the purchaser and the retail dealer remits it to the state revenue commissioner. ( O.C.G.A. Sec. 48-8-30(a)-(b), (d) ; Reg. Sec. 560-12-2-.21(1) ) Local sales taxes may also apply. No retail sale, lease, or rental is taxable to the dealer or lessor which is not taxable to the purchaser or lessee. ( O.C.G.A. Sec. 48-8-30(b), (c.1) ) All sales made by a retailer are subject to tax until the contrary is established. The person making the sale has the burden of proving that a sale is not a retail sale unless an exemption certificate is accepted from the purchaser stating that the purchase is for resale or is otherwise exempt. |
| HAWAII | Transactions generally subject to Hawaii general excise tax include:
|
| IDAHO | Idaho sales tax is imposed on retail sales, which are defined as all sales of tangible personal property except property that will be resold, leased, or rented in the regular course of the buyer’s business. ( IC Sec. 63-3609; IC Sec. 63-3612(1); IC Sec. 63-3612(2)(c); Rule 35.01.02.011)
Certain enumerated services are also subject to sales tax. ( IC Sec. 63-3612(2); Rule 35.01.02.011.02) Liability for tax. Sales tax is imposed on the consumer; however, the retailer is responsible for collecting the tax. ( IC Sec. 63-3619(b); Rule 35.01.02.068.02; Rule 35.01.02.068.07) |
| ILLINOIS | Illinois imposes retailers’ occupation (sales) tax on retailers of tangible personal property and service occupation tax (SOT) on persons who transfer tangible personal property incidental to a service. ( 35 ILCS 115/3-40 ; 86 Ill. Adm. Code 140.101 ; 86 Ill. Adm. Code 140.120 ; 86 Ill. Adm. Code 140.201(f) ) |
| INDIANA | Gross retail (sales) tax is imposed on retail sales of taxable tangible personal property and specified taxable services. ( IC 6-2.5-2-1 ; 45 IAC 2.2-2-1) The seller collects the sales tax as agent for the state, but the customer is liable for the tax. ( IC 6-2.5-2-1 ; 45 IAC 2.2-2-2 )
Sales tax does not apply when the property is delivered outside Indiana for use outside Indiana. |
| IOWA | All sales of tangible personal property are subject to Iowa sales tax unless a specific exemption applies. However, sales of services are exempt from Iowa sales tax unless specifically taxed by state law.
Imposition of tax. Sales tax is imposed on retail sales of tangible personal property, consisting of goods, wares, or merchandise. ( Sec. 423.2(1), Code of Iowa ) |
| KANSAS | Retailers’ sales tax is imposed on all retail sales of tangible personal property and on the furnishing of taxable services. (Sec. 79-3603, K.S.A. ) The tax generally applies to three types of transactions: (1) the retail sale, lease or rental of tangible personal property, including the sale or furnishing of utilities; (2) charges for labor services to apply, service, alter, maintain, or repair or install tangible personal property; and (3) the sale of admissions to places providing amusement, entertainment, or recreation services. (Sec. 79-3603, K.S.A. ) The sales tax is imposed upon the consumer and paid to the retailer, who is responsible for collecting and remitting the tax. (Sec. 79-3604, K.S.A. ) |
| KENTUCKY | Sales tax is imposed on a retailer’s gross receipts from retail sales of tangible personal property, digital property, and enumerated services. ( KRS Sec. 139.200 ) Although the tax is imposed on a retailer’s gross receipts, shifting of the tax to the purchaser is mandatory. Sales tax must be separately stated, and the tax becomes a debt from the retailer to the Commonwealth. ( KRS Sec. 139.210 ) |
| LOUISIANA | Louisiana imposes a sales tax on the sale of tangible personal property, the lease or rental of any item or article of tangible personal property, and specified services. (Sec. 47:302(A), La R.S.; Sec. 47:301(14), La R.S.)
Sales tax liability. The sales tax is payable by users, consumers, lessees, and persons receiving services taxable under the law. If a seller or lessor qualifies as a dealer, that party must apply for a sales tax certificate, collect the proper taxes from customers, and file returns with the Department of Revenue. (Sec. 47:304, La R.S.) |
| MAINE | Sales tax is imposed on all retail sales of tangible personal property and specified taxable services in Maine, unless an exemption applies. The sales tax is imposed on customers, but retailers must collect and remit the tax. Customers are liable to retailers for sales tax, and a retailer may bring an action against a consumer to recover unpaid sales tax. A retailer must either separately state sales tax on receipts and invoices or put a statement on receipts and invoices that sales tax is included in the price. When several purchases are made together and at the same time, but are taxed at different rates, the purchases must be separately totaled on a receipt or invoice. |
| MARYLAND | Maryland sales tax is a general tax on all retail sales of tangible personal property in the state.
While buyers have the duty to pay sales tax, vendors have the duty to collect the tax. |
| MASSACHUSETTS | Massachusetts sales tax is imposed on all retail sales of tangible personal property in Massachusetts and on certain services performed in the state. ( Sec. 2, Ch. 64H, G.L. )
In most retail transactions, the “vendor” is responsible for remitting the sales tax to the state and must add the tax to the sales price charged the purchaser. ( Sec. 2, Ch. 64H, G.L. ; Sec. 3(a), Ch. 64H, G.L. ) However, purchasers of motor vehicles and trailers are generally responsible for remitting the sales and use tax directly to the state. |
| MICHIGAN | The Michigan sales tax is imposed on persons engaged in the business of making sales at retail and performing specifically enumerated services. The sales tax is a general tax on the privilege of making retail sales that applies to all retail sales of tangible personal property unless specifically exempted. |
| MINNESOTA | Minnesota sales tax is imposed on retail sales of tangible personal property and specified services. It is generally imposed on a seller’s gross receipts from sales at retail. However, shifting of the tax to the purchaser is mandatory. The sales tax, which must be separately stated, must be collected by the seller from the purchaser unless the purchaser holds a direct payment permit. |
| MISSISSIPPI | Every person engaged in the business of selling any tangible personal property or specified digital product or rendering taxable services in Mississippi is subject to sales tax. ( Miss Code Ann Sec. 27-65-17)
Sales tax liability. The sales tax is computed on gross income or gross proceeds of sales of the business. Persons required to collect sales tax must add the tax to the sales price or gross income, collect the tax from the purchaser, and remit it to the Department of Revenue. ( Miss Code Ann Sec. 27-65-31) |
| MISSOURI | Sales tax is imposed on retail sales of tangible personal property and certain services. ( Sec. 144.020, RSMo ; 12 CSR 10-113.200 ) Sales tax is also imposed on admission charges, rentals, and leases. ( Sec. 144.020, RSMo ; 12 CSR 10-113.200 ) Persons making retail sales collect the sales tax from the purchaser and remit the tax to the Missouri Department of Revenue. ( Sec. 144.020, RSMo ; Sec. 144.011, RSMo ; Sec. 144.030, RSMo ; 12 CSR 10-113.200 ) Cities, counties and certain districts may also impose local sales taxes, so the amount of tax that sellers collect from the purchaser depends on the combined state and local rate at the location of the seller. The state and local sales taxes are remitted together to the Department of Revenue. |
| MONTANA | The state of Montana does not impose a sales, gross receipts, occupational license, or consumption tax based upon the sale or use of tangible personal property within the state or its political subdivisions. |
| NEBRASKA | The Nebraska sales tax is imposed on retail sales of tangible personal property, leases and rentals, lodging accommodations, bundled transactions when one or more of the products included in the bundle are taxable, products delivered electronically, selected services, admissions, warranties, and certain utility services in the state. The sales tax is imposed on the consumer although the retailer is required to collect the tax. The tax required to be collected is a debt owed by the retailer to the state. ( Sec. 77-2703(1)(a), R.S. ; Reg. 1-001.03 ) |
| NEVADA | The Nevada sales tax is a general tax levied on the gross receipts from sales at retail, leases, or rentals of tangible personal property and on the furnishing of specified services. ( NRS Sec. 372.060 ; NRS Sec. 372.105 )
The burden of collecting and remitting the sales tax is imposed upon all retailers for the privilege of selling tangible personal property at retail within Nevada. ( NRS Sec. 372.105 ; NRS Sec. 372.110 ) |
| NEW HAMPSHIRE | New Hampshire does not impose a general sales and use tax but it does impose a sales-and-use-type tax on meals and rentals. |
| NEW JERSEY | Sales tax is imposed on receipts from every retail sale of tangible personal property or specified digital products, and sales of enumerated services. Collection of tax. Sales tax is collected by sellers from their customers. If a customer fails to pay tax to the seller, the customer must pay the tax directly to the state. The sellers are personally liable for the tax collected or required to be collected. Any person required to collect tax must file a certificate of registration with the Division of Taxation and is required to file returns and pay the taxes over to the state. (N.J.S.A. Sec. 54:32B-17 ; N.J.S.A. Sec. 54:32B-18 ) |
| NEW MEXICO | The gross receipts tax generally applies to sales of property and services by persons engaging in business in New Mexico. ( NM Stat Ann Sec. 7-9-4 ; 3.2.6.9 NMAC ) Sellers, service providers and all other persons engaged in business in Mexico are liable for the tax. ( 3.2.4.8 NMAC ; 3.2.6.9 NMAC ) A seller or service provider’s gross receipts from sales transactions are taxable unless the receipts qualify for an exemption. |
| NEW YORK | Sales tax is imposed on retail sales of taxable tangible personal property and specified taxable services. The tax is collected from the person who purchases at retail—the consumer. Liability for the tax occurs at the time of the transaction. The point of delivery or point at which possession is transferred by the vendor to the purchaser or the purchaser’s designee controls both the tax incident and the tax rate.
In general, sales tax applies to a number of categories. |
| NORTH CAROLINA | Sales tax is imposed on a retailer’s net taxable sales or gross receipts from sales at retail, leases or rentals of tangible personal property. For these purposes, the term “gross receipts” has the same meaning as the term “sales price.”
Sales made for the purpose of ultimate resale do not constitute taxable sales. Generally, occasional sales are also not considered to be taxable sales. |
| NORTH DAKOTA | There are a number of transactions generally subject to North Dakota sales tax. The tax is added to the sales price and collected and remitted to North Dakota by the retailer. ( Sec. 57-39.2-08.2, NDCC ; Sec. 57-39.2-12, NDCC ) |
| OHIO | Ohio sales tax applies to all retail sales, unless otherwise exempt, of tangible personal property and the sale of certain specified services. ( Sec. 5739.01(B), Ohio R.C. ; Sec. 5739.02, Ohio R.C. ) Rentals and leases are also considered to be sales subject to tax. The purchaser or consumer pays the tax and the vendor is responsible for collecting and remitting the tax. The tax applies and is collectible when the sale is made, regardless of the time when the price is paid or delivered.
It is presumed that all sales made in Ohio are subject to sales tax unless the contrary is established. All transactions by which tangible personal property is or is to be stored are considered sales subject to sales tax. |
| OKLAHOMA | The Oklahoma sales tax is levied on sales of tangible personal property at a set percentage of the gross receipts or gross proceeds from each sale. Local sales taxes may also apply. |
| OREGON | The state of Oregon does not impose any form of sales, gross receipts, occupational license, use, or consumption tax on the basis of the sales or use of tangible personal property within the state. |
| PENNSYLVANIA | Sales at retail of tangible personal property and taxable services are generally subject to sales tax, unless the sale is specifically exempt or excluded from the tax. Vendors must collect and remit sales tax. (Sec. 202(a), Act of March 4, 1971, P.L. 6, [72 P.S. §7202(a)] ; Sec. 237(b), Act of March 4, 1971, P.L. 6, [72 P.S. §7237(b)] ) |
| RHODE ISLAND | Sales tax is imposed on the retail sale, rental or lease of tangible personal property and specified services. ( RI Gen Laws Sec. 44-18-7 ; RI Gen. Stat. Sec. 44-18-8 ; RI Gen Laws Sec. 44-18-18 )
Collection of sales tax. The retailer collects the sales tax from the consumer or user. |
| SOUTH CAROLINA | Sales tax is imposed on vendors engaged or continuing in the business of selling tangible personal property at retail in South Carolina. Sales tax applies to the gross proceeds of all retail sales or leases of tangible personal property, except those expressly exempted from tax or excepted from the definition of “retail sale. “ |
| SOUTH DAKOTA | South Dakota imposes a general sales tax on retailers for the privilege of selling, leasing, or renting tangible personal property at retail in South Dakota and on persons selling, performing, or furnishing designated services at retail to consumers or users in South Dakota. ( Sec. 10-45-2, SDCL ) The sales tax is a combination of the state tax and any applicable municipal taxes. The tax is applied to the gross receipts of any business, organization, or person engaged in retail sales, including the selling, leasing, and renting of tangible personal property or the sale of services, as long as the products or services are not specifically intended for resale or sold to a governmental or tax exempt agency. ( Sec. 10-45-2, SDCL ; Sec. 10-45-4, SDCL ; Sales and Use Tax Guide, South Dakota Department of Revenue, June 2016) Sales tax must be computed and paid on taxable receipts even if those receipts include sales where no tax is charged to the customer. A seller may choose to compute the tax due on an item or invoice basis. ( Rule 64:06:01:05, ARSD )
The sales tax is in addition to all other state or local occupation or privilege taxes. ( Sec. 10-45-21, SDCL ) |
| TENNESSEE | Tennessee sales tax is imposed on every person who:
Collection. Tax must be collected by all dealers furnishing taxable services or making retail sales within or outside Tennessee of tangible personal property for distribution, storage, use, or other consumption in Tennessee. Although dealers are liable for the tax, they are required to collect the tax from the consumer. Dealers must indicate to their customers whether they are paying any sales tax by posting a sign or by a statement on the receipt. |
| TEXAS | Texas sales tax is imposed on sales and leases of tangible personal property and specified services unless an exemption applies. ( Sec. 151.005, Tax Code; Sec. 151.010, Tax Code)
The tax due is a debt of the purchaser to the seller. However, the Comptroller of Public Accounts may proceed against either the seller or purchaser, or both, for unpaid tax. ( Sec. 151.051, Tax Code; 34 TAC Sec. 3.286) |
| UTAH | Sales tax is imposed on retail sales of taxable tangible personal property and specified taxable services. The tax is imposed on the total sales price and must be collected and remitted by the vendor. ( Sec. 59-12-103, Utah Code Ann. ; Rule R865-21U-1, Utah Admin. Code ) |
| VERMONT | The sales tax is based on the sales price of tangible personal property, admissions, and taxable services. Although sales tax is imposed on the purchaser, vendors of taxable tangible personal property and services and recipients of amusement charges are required to collect the tax. ( 32 V.S.A. Sec. 9701(14) ; 32 V.S.A. Sec. 9703 ; 32 V.S.A. Sec. 9705 ; Bud Crossman Plumbing and Heating v. Commissioner of Taxes, (1982, Vt SCt), 455 A2d 799, ¶200-177) |
| VIRGINIA | The retail sales tax is a privilege tax imposed on persons engaged in the business of selling at retail, distributing, renting, or furnishing tangible personal property in Virginia. It is also imposed on persons who store, lease, or rent property for use or consumption in Virginia. Sales tax must be collected by the dealer, who is required to separately state the amount of the tax and add it to the sales price or charge. Thereafter, the tax is a debt from the purchaser, consumer, or lessee to the dealer until paid and is recoverable in the same manner as other debts. ( Sec. 58.1-625, Code ; 23 VAC 10-210-340 ) |
| WASHINGTON | Washington sales tax is imposed on the selling price of tangible personal property, digital codes, digital goods, and specified services. The tax generally applies to goods, construction including labor, repair of tangible personal property, lodging for less than 30 days, telephone service, participatory recreational activities, and specified personal and professional services. ( RCW 82.04.050 ; Tax Reference Manual, Washington State Department of Revenue, January 2002)
Sales tax and use taxes are imposed in addition to other licenses, taxes, and excises imposed by the state and its municipal subdivisions. Collection of tax. The tax is collected from purchasers by retail vendors at the time of sale. The sales tax is a debt from the buyer to the seller until paid. However, the Department may, in its discretion, collect the sales tax directly from the buyer when the buyer has failed to pay the seller. |
| WEST VIRGINIA | The West Virginia consumers sales and service tax is a general tax imposed on sales of tangible personal property, custom software, and those services that are not specifically exempted. ( W.Va. Code Sec. 11-15-3(a) ) The tax is imposed at a general rate applicable to most transactions, and a reduced rate applicable to sales of motor fuels and sales and leases of motor vehicles. Local consumers sales and services taxes may also apply. The consumers sales and service tax is intended to be passed on to and paid by the ultimate consumer by adding the tax to the sales price. ( W.Va. Code Sec. 11-15-10 ) |
| WISCONSIN |
There are a number of transactions generally subject to Wisconsin sales tax. ( Sec. 77.52(1), Wis. Stats. ; Sec. 77.52(2), Wis. Stats. ) Sales tax applies to the sales price from the sale, license, lease, or rental of tangible personal property and other taxable transactions. The tax can be collected from the consumer or user. |
| WYOMING | The Wyoming sales tax is an excise tax levied on all retail sales or leases of tangible personal property, specified digital products, and enumerated services within the state. ( Sec. 39-15-103, W.S.)
Liability for sales tax. Although the sales tax is paid by the purchaser, vendors are required to collect the tax and are liable for the entire amount. ( Sec. 39-15-103(a)(i), W.S.; Sec. 39-15-103(c)(i), W.S.) A secondary liability provision requires a purchaser to pay sales tax to the Department of Revenue if the purchaser does not pay the tax to the vendor. ( Sec. 39-15-103(c)(ii), W.S.) |
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