Multistate Tax: The Top 3 State Tax Issues for 2017
Happy New Year!
I always like the fresh feeling of a New Year – a clean desk, a new calendar, and a relaxed and grateful frame of mind from coming off of the holidays. I’m particularly excited about 2017 because it’s a year of special milestones and anniversaries for me – both personally and professionally, and I’m a big believer in celebrating those special occasions. I’m not sure exactly what the year will bring, but I have big expectations for it.
Cheers! An Update on the Taxability of Beer
Cheers! The start of the New Year is just around the corner. How are you going to celebrate? Maybe with a beer or a glass of champagne? Well, did you ever think about how that beer or champagne came to be? Or how it came to be taxed? In this article we discuss some of the implications on the taxing of beer and wine and a change lurking in the New Year.
All breweries may receive some help from Uncle Sam in the New Year. A new federal law will lower excise taxes on both craft and macro brewers. So both beer makers and beer drinkers may soon find a lower bar tab. The rapid growth of the beer industry has created struggles for regulators who are responsible for taxing and regulating beer and other alcoholic beverages.
FOCUS ON HAWAII
Aloha! This month we travel across the ocean to the island paradise of Hawaii. In the state, you can attend a luau to experience true Hawaiian culture, relax on the beach or hike in one of the many tropical forests or mountains.
Hawaii is unique because it the only state made up of part of the volcanic Hawaiian archipelago, which consists of hundreds of islands spread over 1,500 miles. At the southeastern end of the archipelago are eight islands known as the state of Hawaii. They are: Niihau, Kauai, Oahu, Molokai, Lanai, Kahoolawe, Maui and Hawaii.
Due to its central location in the Pacific Ocean and its 19th-century labor migration, Hawaii’s culture is strongly influenced by North American and Asian cultures, in addition to its indigenous Hawaiian culture. This is exhibited by the many customs and food cuisines that Hawaii has to offer. For example, it is customary to bring a small gift for one’s host (i.e., a dessert). Many Hawaiian plates have been influenced by Polynesian, Asian and American foods as well.
Rainmaking – Consider Your Pricing
A few weeks ago, I posted here about putting my Jumpstart Your Rainmaking program on sale. It was Black 
Friday and I wanted to participate! (Of course, most of the time, we think of “on sale” as pertaining to tangible goods.) How many of us who sell professional services would ever think to put them “on sale”? It’s not something I had ever considered before. But let’s imagine it for a minute…how the billboard ads might read….
Multi-state sales tax consulting services…”Call to sign up for a multi-state nexus review in the next 24 hours, and I’ll cut my fees by 25%”
IT support: “For December only, we’ll give you all the support for half the price!”
Realtor: “Today only – Offer on your house? We’ll cut the commission by 15%”
Not likely. Right? So, I’m not advocating that we’d ever really be in the business of putting our services “on sale”.
Washington's Minimum Wage Hike: What Do You Need To Know?
Last month’s election results included more than determining the next president and allowing recreational marijuana in California; states across the country also passed legislation changing employment laws – specifically minimum wage and sick pay. I thought it would be interesting to take a look at one of these states (one of our neighbors to the north): Washington.
Case Study: Minimum Wage & Paid Sick Leave in Washington State
Washington isn’t new to interesting legislation. Last year they passed a few statutes regarding nexus in the state and a five-point internet sales tax solution. What about the recent election? The state passed a law regarding minimum wage and paid sick leave.
Although Washington State’s minimum wage was already the 8th highest in the country and more than $2.00 above the federal minimum wage, voters passed an initiative that will significantly affect employees’ wages.
Rainmaking - Making the Sales Process Easier
My business contacts and blog readers have heard from me quite a bit lately because I’m actively promoting my quarterly webinar series – Jumpstart Your Rainmaking. I’ve been sending out email blasts, writing more blogs about Rainmaking, and telling everyone I know about this. Why? Because I’d like to fill the virtual conference room. As you know from reading my blogs, even though I’ve been building my business for years, the Rainmaking training part of my business is relatively new. The multi-state part is over 15 years old. And I’m trying to draw some attention to the new.
There’s a section in my Rainmaking training where I discuss sales mindset, and why sometimes it’s difficult to get into the sales mindset. That’s because cold-selling can be hard. And honestly, selling the Rainmaking training has been harder than I thought too. It’s different than selling multistate tax services. So, I thought it would be a good discussion.
Start-up Companies Can Now Benefit from the R&D Tax Credit
If you’re a start-up company with annual gross receipts of less than $5 million, you can now apply up to $250,000 of your R&D credit against your payroll tax liability.
The federal R&D tax credit is a dollar-for-dollar reduction of federal income tax liability for qualified expenditures incident to the development or improvement of a product, process, software, formula or invention. It was recently made permanent by The Protecting Americans from Tax Hikes Act of 2015 (“PATH” Act).
Previously, a company had to actually generate a profit and taxable income to utilize the R&D tax credit. Now the PATH Act allows start-up companies to utilize the credit against their payroll taxes, if the companies perform “qualified research”.
Rainmaking - It's On Sale
Happy Day After Thanksgiving to you and yours! This blog is posting on Black Friday. Why do I have time to write a blog today? Because I’m NOT one of the 137 million Americans who will begin their Christmas shopping – either in stores or online this weekend. Yes, wholly 40% of Americans shop this weekend. But it’s not a tradition that I partake in. For all of you that DO – you’ll certainly be in good company. Enjoy and charge safely out there!
But the thought of Black Friday got me thinking about the concept of offering special deals in general. Should service providers like CPAs, attorneys and other professionals ever offer specials? I’m in the process of offering one right now. Not in my multistate business, but on the Rainmaking side of the house. And I’m still trying to decide if it’s a good idea.
Here’s the situation:
The multistate side of Miles Consulting Group has been my main source of revenue for almost 15 years. Last year, in addition to multistate, I launched a speaking and educational program called Jumpstart Your Rainmaking. It’s all about helping professionals who need to sell their services. I use my 20+ years of experience in selling consulting services to train colleagues on developing their sales mindset, identifying their perfect target client, selecting the best direct and indirect marketing strategies to get in front of that audience, putting together a viable written plan, and then keeping themselves accountable. The program is delivered in a variety of ways – live speaking presentations, customized training for CPA firms, and a three part webinar series. Each delivery format is a little different, and offers training to people in ways that make sense to them.
Right now, we are preparing to offer the three part webinar series – a three week commitment (an hour per week) in December. Webinar participants will benefit from the items mentioned above, and will also learn how to develop their 2017 revenue generation plan. Before January, our program participants will have an easy to follow, measurable plan which will help them generate revenue in their pipeline next year.Read more
An Interesting Look at Sales Tax and Legal Marijuana
Although the presidential campaign seemed to dominate headlines earlier this month, there was another proposition that passed in California (as well as a handful of other states): recreational marijuana became legal. What does this mean for the Golden State’s sales tax revenue? And how will it affect other industries? I thought it would be worth taking a look at what other states have done and how California may proceed in the coming months.
How Colorado & Washington Approach Marijuana Sales Tax
Colorado and Washington legalized recreational marijuana in 2012. Here’s how they currently charge sales tax:
Colorado
In 2015, the state of Colorado received $135 million in sales tax revenue from nearly $1 billion in marijuana sales. It’s worth noting Colorado’s population is only about a tenth of California’s.
Recreational marijuana is subject to:
- 2.9% state sales tax (which is the rate for all tangible personal property)
- Any local sales taxes
- An additional 10% state marijuana sales tax
- Recreational marijuana is also subject to a 15% excise tax
In Colorado, the retail cultivator is liable for the excise tax, which is included in the price the consumer pays at the store (which is similar to liquor or tobacco). The sales tax is imposed on the sale from the retailers to the consumer.Read more
Rainmaking - Kicking Off Another Webinar Series
As we edge closer to the end of 2016, some of you may already be thinking about setting your goals for 2017. And, if you’re not, maybe you should be! In that spirit, we are once again preparing to deliver the three part “Jumpstart Your Rainmaking” webinar series, beginning December 7th. If you’re a follower of this blog and my communications, you know that we discuss topics designed for professionals who need to sell their services. It’s tough to go out there and sell yourself every day! Jumpstart focuses on how to develop the skills to keep your pipeline filled and how to generate revenue. Prior webinar participants have included CPAs, bookkeepers, attorneys, financial planners and even virtual administrative assistants. We are offering the webinar series now to help you put together a plan prior to year-end so that you’ll be ready to go with it come January 1. Won’t that feel good?
Why Take This Class?
You may be thinking – “Wait, Monika specializes in multi-state tax consulting!” That’s true. And as part of my practice, several years ago, I had to develop a system that would work for me to build my business. In the process of building that system over the years, I realized that it’s also teachable. So, in addition to having passion for helping clients navigate state tax issues, I also have passion for helping people understand how to build businesses and generate revenue. Why? It’s nice to help others grow and share in their success. I’ve had a lot of help over the years, and I want to pay it forward as well.
So, here are those rainmaking skills and the passion behind them, developed into a short, easy to manage Rainmaker webinar series for accounting and finance professionals. Why now? Because as I share with people what I’m doing and how – everyone tells me “Wow – this is really something people need!” So, I’m making it happen, with you in mind!Read more
