Arizona recently repealed a year-old requirement for a statement of use tax liability for online purchases on a taxpayer's income tax return, according to a story in this week’s issue of Bloomberg BNA’s Weekly State Tax Report. While the legislation [S.B. 1214] repeals the tax reporting requirements, it does not erase the taxpayer's liability to pay taxes owed, the story provides.
The Arizona Legislature enacted H.B. 2332 in 2011 requiring a person who “stores, uses, or consumes’’ tangible personal property that is subject to use tax for a nonbusiness purpose to declare the annual amount of tax due on that person's income tax return, if the tax was not collected by a registered retailer, the story explains.
The reporting requirement was on income tax forms used for year 2011 taxes, and was regarded at the time of enactment as a first gauge of the amount of internet purchases made by Arizona residents, Bloomberg BNA’s Daily Tax Reportsaid in an April 2012 story.
Supporters of the repeal, however, called the reporting requirement cumbersome because many taxpayers did not keep track of whether sales tax was collected for online purchases, the story said.
Meanwhile a new study out of Minnesota’s House Research Departmentis reevaluating the state’s efforts to collect the use tax via the income tax return, and options for Minnesota to use the income tax return to increase use tax reporting and collections.
Thirty-eight states impose both a sales and use tax and an individual income tax, with twenty-five of these states providing use tax reporting on individual income tax returns, the report states.
In looking to the other states, the study reports that “collections in Louisiana, Massachusetts, and Michigan all increased substantially in the year following implementation of use tax reporting on the income tax return.”
In other developments…
Special Report: Taxation of Online Travel Services: Lawsuits Generally Not Succeeding In Effort to Expand Hotel Taxes, by Joseph Henchman at the Tax Foundation.
California Prop. 29 and state cigarette excise taxes, from Nick Kasprak of the Tax Foundation.
North Dakota's Measure 2: High risk for little reward, according to Michael Leachman, Phil Oliff, and Anderson Heiman, of the Center on Budget and Policy Priorities.
Tax provisions enacted in 2012-13 state budget, is the focus of an article in Morrison & Foerster LLP’s May 2012 edition of New York Tax Insights.
Scholastic Books faces state tax overreaching, by Joseph Henchman at the Tax Foundation, by Jordan King and Joseph Henchman at the Tax Foundation.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)