Sales and Use Taxes: General Principles (Portfolio 1300)

Description

Tax Management Portfolio, Sales and Use Taxes: General Principles, No. 1300, discusses the fundamental principles applicable to sales and use taxes. The Portfolio discusses the historical development of sales and use taxes and the application of sales and use taxes to real property, tangible personal property, and services. The Portfolio includes analysis of the “true object” test as applied to transactions involving sales of both services and property.

Further, the Portfolio reviews the duties and obligations of the seller and the purchaser regarding collection of tax, maintenance of records, registration requirements, and potential officer liability. The Portfolio also discusses other variables that can affect sales and use taxes, including the application of discounts, rebates, coupons, and trade-ins on the sales price, the affect of bad debts on tax liability, the application of tax to procurement card transactions, the allowance of exemptions, and imposition of tax on bulk sale transactions. Finally, the Portfolio addresses administrative matters, including audit methodologies and officer liability.

Additional Portfolios providing detailed information on specific sales and use tax topics include 1320 T.M., Sales and Use Taxes: Information Services, and 1350 T.M., Sales and Use Taxes: Communications Services and Electronic Commerce. For additional relevant Tax Management Portfolios consult the Portfolio Classification Guide.

Subscribers to the Internet version of the Portfolio will find late-breaking developments reported in the Bloomberg Tax Daily Tax Report – State.

This Portfolio may be cited as Nagel and Rosen, 1300 T.M., Sales and Use Taxes: General Principles.

Table of Contents

1300.01. NATURE OF TAX
1300.02. HISTORICAL BACKGROUND
1300.03. THE DUTIES AND OBLIGATIONS OF THE SELLER AND THE PURCHASER
1300.04. TAXABLE TRANSACTIONS RELATING TO REAL PROPERTY
1300.05. TAXABLE TRANSACTIONS RELATING TO TANGIBLE PERSONAL PROPERTY
1300.06. TAXABLE TRANSACTIONS RELATING TO SERVICES
1300.07. INTERSTATE ISSUES AND CONSTITUTIONAL ISSUES
1300.08. BULK SALES, TRANSFEREE LIABILITY
1300.09. EXEMPTIONS AND EXCEPTIONS
1300.10. AUDIT METHODOLOGIES
1300.11. OFFICER LIABILITY
1300.12. ADMINISTRATIVE MATTERS AND MISCELLANEOUS
1300.13. STREAMLINED SALES AND USE TAX AGREEMENT