LUTZ BUSINESS INSIGHTS
WHAT YOUR BUSINESS NEEDS TO KNOW ABOUT SALES TAX
STACY WATSON, TAX & CONSULTING SHAREHOLDER
Use TaxAll states that impose a sales tax also impose a use tax. Use tax, as the name indicates, is generally due on the purchase of items used in a business. Any individual who purchases an item in which sales tax was not paid must pay use tax on the item. Examples would include items purchased over the Internet and those purchased for use in one state but purchased from a vendor located in another state. Any exemptions/exceptions that a state statute provides for sales tax would also apply for determination of any use tax due. There still needs to be a connection with the state before remittance of use tax is required. Generally, this would be established by having a location in the state, such as an office, plant and/or a warehouse. States are attempting to expand their sales tax reach by enacting affiliated nexus and click through nexus. States are also passing legislation to include economic nexus as a standard for sales tax collection.
ABOUT THE AUTHOR
STACY WATSON + TAX & CONSULTING SHAREHOLDER
Stacy Watson is a Tax and Consulting Shareholder at Lutz with over 20 years of experience in taxation. She has in-depth experience in providing state and local, income, franchise, sales, use and escheat taxes.
AFFILIATIONS AND CREDENTIALS
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
- BSBA in Accounting, Creighton University, Omaha, NE
- Junior Achievement Heartland Family Services, Past Member
- St. Stephen the Martyr, Various Boards
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