{"id":296,"date":"2014-05-19T19:48:39","date_gmt":"2014-05-19T19:48:39","guid":{"rendered":"http:\/\/www.brp-cpas.com\/wordpress\/?p=296"},"modified":"2014-05-19T19:48:39","modified_gmt":"2014-05-19T19:48:39","slug":"experiencing-sales-tax-frustration","status":"publish","type":"post","link":"https:\/\/bronswick.com\/2021\/2014\/05\/19\/experiencing-sales-tax-frustration\/","title":{"rendered":"Experiencing Sales Tax Frustration?"},"content":{"rendered":"

Confused, frustrated, and just plain annoyed with Sales Tax changes? \u00a0\u00a0The hours spent month to month trying to keep track of it all can really add up. When it comes to your unique business needs, contact a\u00a0BRP professional\u00a0<\/a>to provide the commitment and expertise to keep your business on track. Let our professionals help manage it all and free you up for more \u201csales time\u201d and less \u201ctaxing time\u201d.<\/p>\n

The following is Part 1 of a 4 Part series that will help answer some basic questions.<\/p>\n

UNDERSTANDING & MANAGING SALES & USE TAX
\n<\/b>By Carol Schubert, E.A<\/a>.<\/b><\/p>\n

<\/b>Part 1 of 4 Part Series<\/b><\/p>\n

\u00a0<\/b>What is Sales Tax?<\/b><\/p>\n

A form of excise tax initiated by the retail sale of taxable tangible personal property (TPP).\u00a0 The property is not being taxed, but the retailing of the property triggers the tax.\u00a0 In some states, specific services are subject to sales taxes as well;\u00a0 \u00a0A levy on the buyer, on the seller, or on the transaction itself.<\/p>\n

Important definitions:<\/i><\/b><\/p>\n

Retail Sale<\/span><\/i><\/b> -Transfer of title, possession, or both to the user.\u00a0 Generally, only sales to end users or consumers are subject to sales tax.\u00a0 Wholesale sales to those who will then retail the merchandise to others are generally exempt from sales tax as \u201csales for resale\u201d (resell certificate required).<\/p>\n

Taxable<\/span><\/i><\/b> \u2013 Goods are generally taxable unless specifically exempted.\u00a0 Services are generally exempt unless specifically listed as taxable.<\/p>\n

Tangible Property <\/span><\/i><\/b>\u2013 Property that can be held, smelled, touched, seen or tasted, or which is otherwise perceptible to the human senses.\u00a0\u00a0 Note:\u00a0 Illinois does not have a statute on what is \u201ctangible property\u201d.<\/p>\n

Personal Property<\/span><\/i><\/b> \u2013 Property that is not real property, but fixed to the ground and improvements that become an integral part of the same.\u00a0 Personal Property is non-taxable.<\/p>\n

<\/b>Taxable Services<\/span><\/i><\/b> \u2013 Certain services that are subject to sales taxes in specific jurisdictions.\u00a0 These vary depending on the statutes of the various localities.<\/p>\n

Interstate Transactions<\/span><\/i><\/b> <\/i>\u2013 For sales tax purposes, business that is conducted between businesses located in differing states (outside state).<\/p>\n

Intrastate Transactions<\/span><\/i><\/b> \u2013 For sales tax purposes, business that is conducted between business entities that exist within the same state.<\/p>\n

The Nature of Use Taxes<\/b><\/p>\n