The beginning of October comes with a lot of change and excitement: The change in seasons, in weather, getting ready for the winter holidays and last but not least – quarterly sales and use tax legislation changes. In today’s article, we share some of the most relevant sales tax changes that began on October 1.
Colorado Sales Tax Updates
Diapers and incontinence products are now exempt from Denver city and county sales and use tax. These products will be exempt from sales and use tax in the state beginning January 1 as part of House Bill 1055 to “redress the inequitable burden” taxing these products places on caregivers and women.
Another new sales tax law that began October 1 in Colorado is destination sourcing – meaning that sales tax is now calculated based on the buyer’s address when the taxable product or service is delivered to the consumer. If you have questions about these changes, this is a helpful place to start.
Virginia Lodging Tax Legislation
Services such as Expedia and Airbnb that broker hotel rooms and short-term rentals will now have to collect and remit sales and lodging taxes to the Virginia Department of Taxation under H.B. 518, effective October 1.
Tax Legislation For New Jersey Sign Installation
New Jersey sign installers have new sales tax legislation to be aware of starting at the beginning of October. A new public law allows the installers to purchase signs and materials for use in fabrication and installation for resale. In this case, a resale certificate must be issued by the sign installer to the seller to document the exemption. The sign installer must charge sales tax on the sale of all signs.
Also, the new law excludes the installation of signs from the capital improvement sales tax exemption, so installation of all signs is also subject to sales tax.
October Sales Tax Holidays
There are a few sales tax holidays coming up this month. Florida will have a gas tax holiday the whole month of October, with the sales tax on motor fuel going down by $0.25 per gallon. October 28-30 is the National Guard Member holiday in Nevada. This article from Tax Foundation includes a helpful map to see which sales tax holidays are coming up the last few months of 2022 in your state.
Need Help Keeping Up With Ever Changing Sales Tax Legislation?
As you can see, sales tax legislation is constantly changing, and it can be hard to keep up. It is important to understand your liabilities and keep up with your compliance. Working with an experienced team of state tax consultants like Miles Consulting Group is an excellent way to stay updated. If you have questions about your state sales tax obligations, please contact us today. We’re happy to clarify any multistate tax issues you’re trying to navigate.
