SC&H Group Blog: "Expertise Beyond the Numbers"

State & Local Tax Updates: Wyoming Sales and Use Tax; New York Certificate of Capital Improvement; and Mississippi Franchise Tax

Through its content-sharing partnership with Thomson Reuters Checkpoint, SC&H Group’s State and Local Tax practice has compiled the following round up of actionable state tax news.

Please note that a subscription will be required to access the links through Thomson Reuters Checkpoint.

California General Administrative Provisions — GO-Biz releases business investment guide.
The California Governor’s Office of Business and Economic Development (GO-Biz) has issued a business investment guide that serves as a reference document to highlight California’s strategic business advantages and new state-sponsored initiatives and incentives as well as existing technical and financial assistance programs currently in effect. Among other things, the guide sets forth reasons to invest in California, discusses certain state taxes, gives the tax rates for various state taxes, and describes state tax incentives (including the state’s various state income tax credits and sales and use tax exemptions), state financing programs, and state energy and environment programs. The guide will be periodically updated with new information as the state responds to events and activities as well as to taxpayers’ evolving business needs. GO-Biz was created by Governor Brown to serve as California’s single point of contact for economic development and job creation efforts. (State of California Business Incentive Guide, Governor’s Office of Business and Economic Development, 07/01/2014.)

California Real Property — Active solar energy systems.
The California State Board of Equalization has issued a letter to county assessors that advises them of the recent legislation that extended the sunset date of the property tax exclusion for the construction of active solar energy systems from 2015–16 to the 2023–24 fiscal year and changed the repeal date from January 1, 2017, to January 1, 2015. Thus, the new construction exclusion (the term newly constructed does not include the construction or addition of any active solar energy system for property tax purposes) applies to any active solar energy system new construction in process or completed before January 1, 2025, unless this date is further extended. After the exclusion sunsets, any solar energy system previously excluded as new construction will remain excluded from property tax until the property changes ownership. The new letter supersedes previous advice regarding the sunset date of the exclusion contained in the Assessor’s Handbook Section 410, Assessment of Newly Constructed Property (May 2014), page 58, and two previous letters to county assessors. ( California State Board of Equalization Letter to Assessors 2014/037, 08/08/2014 .)

California Sales And Use Tax — Gratuity reporting by California restaurants.
On August 5, 2014, the California State Board of Equalization (SBE) adopted a sales and use tax regulation to ease compliance with reporting tips and service charges collected in restaurants. The regulation establishes a presumption that restaurants are correctly reporting taxable mandatory service charges to the SBE when their records are kept consistent with guidance from the Internal Revenue Service (IRS). An IRS ruling issued in June 2012 provided information on the difference between optional tips (which are not subject to sales tax) and mandatory service charges (which are). For example, a pre-arranged, set percentage of the bill that is charged for large parties at restaurants is a taxable service charge. When the regulation is codified (it needs to be approved by the Office of Administrative Law and filed with the Secretary of State before it can become effective), it will apply to sales made on or after January 1, 2015. ( California SBE News Release 116-14-G, 08/06/2014 .)

Florida Sales And Use Tax — Tax holiday for new energy star and watersense products.
From 12:01 a.m. on Friday, September 19, 2014 through 11:59 p.m. on Sunday, September 21, 2014, no sales tax or local option tax (also known as discretionary sales surtax) will be collected on the first $1,500 of the sales price of a new qualifying Energy Star or WaterSense product. The exemption is limited to a single purchase for each specific type of qualifying item having a sales price of $500 or more. There are no quantity limits on qualifying items with a sales price of less than $500. The Department of Revenue has issued a Tax Information Publication explaining the tax holiday for new energy star and watersense products. This publication provides a list of qualifying energy star products and qualifying watersense products and explains how the tax holiday affects various types of transactions. ( Florida Tax Information Publication 14A01-06, 08/08/2014 .)

Illinois Sales And Use Tax — Amusement tax.
The Illinois appellate court ruled that an administrative law judge (ALJ) was correct in charging the taxpayer past due amusement taxes, plus interest, on amenities available to the ticket holder which are charged as part of the ticket price. The Cook County Amusement Tax Ordinance imposes a 3% amusement tax on “admission fees and other charges” to view an amusement. The taxpayer calculated and paid the amusement tax on the stated admission price for club seats and luxury suites, not on additional fees such as the club privilege fee or annual license fee associated with the taxpayer’s club seats and luxury suites. The court noted that the amenities associated with the club seats and luxury suites cannot be separated from the price to enter the venue and are consequently subject to the amusement tax. (Chicago Bears Football Club v. The Cook County Dept. of Rev., Ill. App. Ct. (3rd Dist.), Dkt. No. 1-12-2892, 08/06/2014.)

Illinois Sales And Use Tax — Computer software licenses.
The Illinois Department of Revenue held that the sale of three types of product subscriptions for prewritten software by the taxpayer are not taxable retail sales. The taxpayer assists companies in developing and delivering mobile and web apps, and uses a widely used open source general scripting language for web development. Customers who purchase the taxpayer’s software products enter into an agreement, and since the taxpayer’s products are used to run critical applications each license includes an additional version of the free, open source general scripting language for web development. The Department noted that they do not typically issue private letter rulings on the taxability of specific licenses of canned software; however, in this instance the following three product subscriptions provided by the taxpayer are not taxable retail sales: an enterprise ready platform for deploying, running, and managing mobile and web apps; a product to give professional PHP developers the tools to write and maintain PHP code faster, solve problems more quickly, develop in the cloud, and improve team collaboration; and the right to use the taxpayer’s software solutions on an unlimited number of servers for developing, running, and managing PHP web applications for the previous two nontaxable retail sales. ( Illinois Private Letter Ruling ST 14-0004-PLR, 07/24/2014 .)

Indiana Real Property — Reduced commercial property assessments.
The Indiana Tax Court affirmed the final determination of the Indiana Board which reduced the commercial property assessments of a shopping mall after the taxpayer presented probative evidence as to the subject property’s market value-in-use and therefore, presented a prima facie case that its assessments for three tax years were incorrect. Believing the assessments were too high, the taxpayer appealed to the local property tax assessment board of appeals and then to the Indiana Board, presenting a Summary Appraisal Report completed in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP). Upon examining the valuation methodology used by the taxpayer in its evidence, the Indiana Board found the methodology proper and issued a final determination reducing the assessments on the property. In its original tax appeal, the assessor contends that the Indiana Board erred in finding that the taxpayer made a prima facie case because it did not adequately scrutinize certain evidence; the assessor also asked the court to reconsider the policy that the mere presentation of a USPAP appraisal establishes a prima facie case. However, the court did not reverse the Indiana Board’s final determination on either basis. (Howard County Assessor v. Kokomo Mall, LLC, Ind Tax Ct., Dkt. No. 49T10-1109-TA-56, 08/06/2014.)

Massachusetts Real Property — Forest, farm, and recreational land.
L. 2014, H2551 (c. 247), effective 11/04/2014, makes corrective changes regarding the taxation of forest, farm, and recreational land.

Maryland Corporate Income Tax — Nonresident contractor withholding in Maryland.
The Maryland Comptroller of the Treasury has repealed the nonresident contractor withholding regulations (Md. Regs. Code §§ 03.01.04.01 through .09, effective 08/18/2014). These regulations have been repealed due to the prior repeal of statutory provisions that required persons doing business with nonresident contractors to withhold 3% of the contract price on contracts amounting to at least $50,000, until specified requirements were met, to cover the nonresident contractors’ liability for Maryland corporate and personal income and sales and use taxes.

Maryland Personal Income Tax — Nonresident contractor withholding.
The Maryland Comptroller of the Treasury has repealed the nonresident contractor withholding regulations (Md. Regs. Code §§ 03.01.04.01 through .09, effective 08/18/2014). These regulations have been repealed due to the prior repeal of statutory provisions that required persons doing business with nonresident contractors to withhold 3% of the contract price on contracts amounting to at least $50,000, until specified requirements were met, to cover the nonresident contractors’ liability for Maryland corporate and personal income and sales and use taxes.

Maryland Sales And Use Tax — Nonresident contractor withholding.
The Maryland Comptroller of the Treasury has repealed the nonresident contractor withholding regulations (Md. Regs. Code §§ 03.01.04.01 through .09, effective 08/18/2014). These regulations have been repealed due to the prior repeal of statutory provisions that required persons doing business with nonresident contractors to withhold 3% of the contract price on contracts amounting to at least $50,000, until specified requirements were met, to cover the nonresident contractors’ liability for Maryland corporate and personal income and sales and use taxes.

Maryland Sales And Use Tax — Parent-teacher organization fundraisers.
The Maryland Comptroller of the Treasury has adopted new regulations regarding exempt sales by parent-teacher organizations (Md. Regs. Code §§ 03.06.01.46, effective 08/18/2014). A sale by a parent-teacher organization or other organization within an elementary or secondary school in Maryland or within a school system in Maryland does not include a sale where the parent-teacher organization or other organization accepts payment on behalf of a third-party vendor, even if the organization receives some portion of the proceeds of the sale. A sale of tangible personal property by any of the following organizations is exempt from the tax: (1) a parent-teacher organization within an elementary or secondary school in Maryland; (2) a parent-teacher organization within a school system in Maryland; (3) an organization within an elementary or secondary school in Maryland; or (4) an organization within a school system in Maryland.

Mississippi Franchise Tax — Prepayment for future services subject to franchise tax.
The Mississippi Supreme Court held that money a corporation receives as prepayment for future services is subject to franchise taxation during the year it is received. The question of whether a deferred revenue account was subject to franchise tax was a question of law, and nothing in Miss. Code Ann. § 27-77-7(5) prohibited the chancery court from granting summary judgment when no genuine disputes of material fact existed. The money in the corporation’s deferred revenue account had not been earned, for the purposes of income taxation, in the year it was received, and so the deferred revenue account represents taxable deferred income. A prepayment for future services clearly fits within the definition of “deferred income,” and so the funds represented by the corporation’s deferred revenue account must be included in its franchise-tax base for the year those funds were received. Miss. Code Ann. § 27-13-17(1) provides that franchise tax is computed on the basis of the previous accounting period closing immediately prior to the accrual date, to be known as the measuring date; therefore, the value of a corporation’s deferred income for a given year is not affected by expenses incurred during any future accounting period. The Court also found that the corporation failed to present clear proof that its deferred revenue account represented either a debt to the corporation or a reserve for a “definite known fixed liability,” both of which are excluded from the calculation of franchise tax. With regard to the “fixed-liability reserve” exception to franchise tax, the corporation’s deferred revenue account is not excepted as a true reserve representing known, definite, and fixed liabilities. (Fishbelt Feeds, Inc. v. Mississippi Department of Revenue, Miss. S. Ct., Dkt. No. 2013-SA-00299-SCT, 08/07/2014.)

Mississippi Sales And Use Tax — Exempt pollution control equipment—NOx burners.
The Mississippi Supreme Court affirmed a chancery court ruling in which the chancellor concluded that Miss. Administrative Code § 35.IV.7.03(302) was an invalid regulation, and determined that four low-nitrous-oxide (NOx) burners purchased by a power company qualified for the pollution control equipment exemption under the plain language of Miss. Code Ann. § 27-65-101(1)(w) . The Supreme Court first determined that the chancery court had appellate jurisdiction in this case because the power company proved by a preponderance of the evidence that it bore and met the burden of the tax sought to be refunded and did not collect it from anyone else. The Supreme Court next rejected the Mississippi Department of Revenue’s argument that equipment which serves a dual purpose (production and pollution control) does not qualify for the pollution control equipment exemption under Miss. Administrative Code § 35.IV.7.03 because the equipment is not used “exclusively and directly” for pollution control. The court found that the regulation was invalid because the words “exclusively and directly” used in the regulation placed a more stringent requirement on the “use” of “pollution control equipment” than that provided by the statute. While the Department of Revenue has the authority to “promulgate rules and regulations, not inconsistent with the provisions of the sales tax law,” the Department exceeded its authority in promulgating Miss. Administrative Code § 35.IV.7.03(302) because it is inconsistent with the plain language of Miss. Code Ann. § 27-65-101(1)(w) . The low-NOx burners purchased and installed by power company were exempt since they satisfied the plain language of Miss. Code Ann. § 27-65-101(1)(w) : they were “used or acquired to prevent, control, monitor or reduce air, water or groundwater pollution, or solid or hazardous waste as required by federal or state law or regulation.” (Mississippi Department of Revenue v. Mississippi Power Company, Miss. S. Ct., Dkt. No. 2013-CA-01234-SCT, 08/07/2014.)

Nebraska Real Property — Ethanol production facility structures are real property, not trade fixtures.
The Nebraska Tax Equalization Review Commission (Commission) vacated and reversed a decision of the Hamilton County Board of Equalization with respect to the valuation of the taxpayer’s property for the tax year 2010. The taxpayer, a renewable energy company, owned a commercial parcel improved with a partially-constructed ethanol production facility. The taxpayer and the County Board disagreed as to the proper classification of the walls and ceilings surrounding equipment or machinery used in the processing and manufacturing of ethanol, the structures use to store grain and alcohol, and the cooling tower foundation that supported a structure designed to allow water to cool and condense. The taxpayer asserted that these items were trade fixtures and taxable as personal property. The County Board asserted that these same items were taxable as real property and assessed the taxpayer’s property accordingly. The Commission found that the walls and ceilings, the structures used to store grain and alcohol, and the cooling tower were real property. (Aventine Renewable Energy Holdings, Inc. v. Hamilton County Board of Equalization, Nebraska Tax Equalization and Review Commission, 10C 100, 07/31/2014.)

New York Sales And Use Tax — Exemption certificate for racehorses.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-126, Exemption Certificate for the Purchase of a Racehorse . The purchase of a racehorse may be exempt from tax if the racehorse: (1) is registered with the Jockey Club, the U.S. Trotting Association, the National Steeplechase and Hunt Association, or is no more than 24 months old and is eligible to be registered with one of these associations; and (2) is purchased with the intent of entering the horse in a racing event on which pari-mutuel wagering is authorized by law. The bulletin explains how a purchaser must complete the form and the penalties for misuse of this exemption certificate. ( New York Sales Tax Bulletin TB-ST-757, 08/07/2014 .)

New York Sales And Use Tax — Exempt tractors, trailers, semitrailers, or buses.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.1 Exemption Certificate for Tractors, Trailers, Semitrailers, or Omnibuses . The bulletin describes the exemptions available for purchases of qualifying tractors, trailers, semitrailers, or omnibuses, and explains what kinds of property and services are taxable, how to use the certificate, and the penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-890, 08/07/2014 .)

New York Sales And Use Tax — Tax exempt purchases by internet data center operators.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.5 Exempt Use Certificate for Operators of Internet Data Centers (Web Hosting) . Operators of internet data centers may make tax exempt purchases of tangible personal property or services used in the operation of an internet data center in New York State. The bulletin describes how to use the certificate, what kinds of property and services can be purchased exempt from sales tax using Form ST-121.5, and the penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-665, 08/07/2014 .)

New York Sales And Use Tax — Exemptions for computer system hardware.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.3 Exemption Certificate for Computer System Hardware . Generally, taxpayers may make tax exempt purchases of computer system hardware used directly and predominantly to: (1) design and develop computer software for sale; (2) provide the service, for sale, of designing and developing internet web sites; or (3) provide a combination of the uses described in (1) and (2). The exemption applies to computer system hardware that is purchased, rented, or leased. The bulletin explains what kinds of property and services are exempt from sales tax using Form 121.3, how to use the certificate, and the penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-243, 08/07/2014 .)

New York Sales And Use Tax — Taxation of computer software and related services.
The Department of Taxation and Finance has issued a tax bulletin that discusses how sales tax applies to sales of computer software and related services. The bulletin defines prewritten and custom software, discussing the tax treatment of each, lists exempt computer software services, addresses the tax treatment of sales of software upgrades and remotely accessed software, and discusses the tax treatment of software maintenance agreements. The bulletin also examines exempt sales for production or research and development, as well as exempt sales to corporations and partnerships. ( New York Sales Tax Bulletin TB-ST-243, 08/07/2014 .)

New York Sales And Use Tax — Farmer’s and commercial horse boarding operator’s exemption certificate.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-125, Farmer’s and Commercial Horse Boarding Operator’s Exemption Certificate . Farmers and commercial horse boarding operators may purchase certain items or services exempt from state and local sales and use taxes. The bulletin explains how to use the certificate, what kinds of property and services can be purchased exempt from tax using Form ST-125, and penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-253, 08/07/2014 .)

New York Sales And Use Tax — College textbook exemption certificate.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.4, Textbook Exemption Certificate . Textbooks purchased by college students may be exempt from state and local sales and use taxes if: (1) the textbook is purchased by a full- or part-time student who is enrolled at an institution of higher education and be for use in his or her course; (2) the textbook is required or recommended for the student’s course; and (3) the student provides a valid student identification card or other evidence of enrollment at the time of purchase. The bulletin explains how to use the certificate, related recordkeeping requirements, and penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-126, 08/07/2014 .)

New York Sales And Use Tax — Exemption for cartons, containers, and packaging materials.
The Department of Taxation and Finance has issued a tax bulletin that discusses the exemption from sales and use tax for cartons, containers, wrapping, and packaging materials and supplies that a vendor uses in packaging tangible personal property for sale when the materials are actually transferred by the vendor to the purchaser. The bulletin defines terms, provides examples of exempt packaging materials, addresses sales of taxable services, discusses taxable purchases that do not qualify for the exemption, and examines purchases by restaurants and other eating establishments. ( New York Sales Tax Bulletin TB-ST-107, 08/05/2014 .)

New York Sales And Use Tax — Exemption for promotional materials.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.2, Exemption Certificate for Purchases of Promotional Materials . Purchases of promotional materials that a purchaser gives away without charge, and purchases of certain services relating to qualifying promotional materials, may be exempt from sales and use taxes. The bulletin explains what kinds of property and services can be purchased exempt from sales and use tax using Form ST-121.2, how to use the certificate, and penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-692, 08/07/2014 .)

New York Sales And Use Tax — Items sold by drugstores and pharmacies.
The Department of Taxation and Finance has issued a tax bulletin that explains how sales tax applies to items commonly sold by drugstores and pharmacies. The bulletin notes that sales of drugs and medicines are not taxable if the drug or medicine is intended for internal or external use in people to diagnose, cure, treat, or prevent illness or disease. The Department provides examples of exempt prescription drugs and medicines and nonprescription or over-the-counter drugs and medicines that also can be purchased exempt from sales tax. The Department notes that products sold to reduce the chance of pregnancy are not taxable. The Department provides examples of taxable cosmetics, toiletries, and general merchandise. Finally, the Department states that the taxability of an item does not change when payment is made under medical insurance coverage. ( New York Sales Tax Bulletin TB-ST-193, 08/05/2014 .)

New York Sales And Use Tax — Property, services used in live dramatic and musical arts performances.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-121.9, Exempt Purchase Certificate for Certain Property and Services Used in Dramatic and Musical Arts Performances . The Department notes that certain purchases of tangible personal property or services for use in the production of live dramatic or musical arts performances are exempt from state and local sales taxes. The bulletin explains what kinds of property and services can be purchased exempt from sales and use tax using Form ST-121.9, how to use the certificate, and penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-535, 08/07/2014 .)

New York Sales And Use Tax — Certificate of capital improvement.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-124, Certificate of Capital Improvement . The Department states that services that result in a capital improvement to real property are exempt from sales tax. Three requirements must be met for the work performed to be considered a capital improvement. Specifically, a capital improvement to property is an addition or alteration to real property that: (1) substantially adds to the value of the real property or appreciably prolongs the useful life of the property; and (2) becomes part of the real property or is permanently affixed to the real property so that removal would cause material damage to the property or article itself; and (3) is intended to become a permanent installation. The bulletin addresses how to use the certificate, how taxpayers may apply for refunds, leasehold improvements, whether the installation of flooring material can qualify as a capital improvement, treatment of mobile homes, and penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-113, 08/07/2014 .)

New York Sales And Use Tax — Exempt for government employee occupancy of hotel rooms.
The Department of Taxation and Finance has issued a tax bulletin that discusses Form ST-129 Exemption Certificate – Tax on Occupancy of Hotel or Motel Rooms . Employees of New York State or the federal government on official business may rent hotel or motel rooms in New York State exempt from sales tax using Form 129. The bulletin identifies eligible governmental entities, explains how to use the certificate, and discusses penalties that may be imposed for misuse of the certificate. ( New York Sales Tax Bulletin TB-ST-315, 08/07/2014 .)

Ohio Real Property — Personal property assessment cancellation upheld.
The Ohio Board of Tax Appeals (BTA) affirmed the determination of the tax commissioner that cancelled the personal property tax assessment based upon the value of tangible personal property located at the Portsmouth Gaseous Diffusion Plant (“PORTS”), a uranium enrichment plant, for tax year 1993. PORTS and the equipment that was the subject of the assessment were owned by the United States Department of Energy (“DOE”) and the taxpayer acted as the contract operator of PORTS that managed, operated and maintained the buildings and facilities. The county had entered into an agreement with the DOE for payments in lieu of taxes; the agreement specified that the county would waive and release any claims for tax years 1992 – 1997 for taxes against DOE and its contractors with respect to value or use of Government-owned real and personal property. While the auditor contended that the commissioner did not have the statutory authority to cancel the assessment in question, the BTA disagreed, finding that Ohio statute allows the commissioner to take whatever action was necessary to correct the assessment, including cancellation. Here, the taxpayer did not own the subject personal property, as title was retained by the DOE, and the taxpayer did not stand in the stead of the owner by virtue of having a beneficial interest. All personal property at PORTS, including the uranium at the plant, was owned by the federal government and the taxpayer was not permitted to utilize any of it for its own purposes. As the taxpayer was not the manufacturer of the personal property, had no control over operations at PORTS, and since there was an agreement in place that preempted the auditor’s ability to issue an assessment certificate of valuation against the taxpayer, the assessment was properly cancelled. (Wheeler v. Testa, Ohio BTA, Dkt. No. 2012-2043, 08/07/2014.)

Ohio Sales And Use Tax — Restaurant and other food vendors.
The Ohio Department of Taxation has revised its information release that provides guidance on the application of Ohio sales tax to food sold by restaurants and other food vendors for consumption on the premises and all sales of soft drinks. Revisions include addressing whether the vendor must approach and collect sales tax from a customer who states that his or her order is “to go” but subsequently sits at a table and eats it on the premises—No; whether the vendor is required to ask the customer at a drive-through window if the order is “for here” or “to go”—No, but the taxpayaer’s recordkeeping system must clearly separate the drive-through sales from other sales; why a quick service restaurant (QSR) cannot charge sales tax on everything it sells—the Ohio Constitution Article XII, Section 3 prohibits the state from imposing sales tax on sales of food for consumption off premises; and whether it is okay to post a sign or signs in the restaurant letting customers know that the law requires the vendor to collect sales tax on food consumed on the premises—Yes. ( Ohio Tax Information Release ST 2012-01, 08/01/2014 .)

Oklahoma Sales And Use Tax — Comanche county rate change corrected.
The Oklahoma Tax Commission clarifies that effective January 1, 2015, the local sales and use tax rate for Comanche County, Oklahoma, increases by 0.125% from 0.25% to 0.375%. A previous story based on information released by the Commission stated that the effective date for the increase was October 1, 2014.

Oklahoma Sales And Use Tax — Comanche county rate change corrected.
The Oklahoma Tax Commission clarifies that effective January 1, 2015, the local sales and use tax rate for Comanche County, Oklahoma, increases by 0.125% from 0.25% to 0.375%. A previous story based on information released by the Commission stated that the effective date for the increase was October 1, 2014.

Wyoming Sales And Use Tax — Mining industry guideline revised.
The Wyoming Department of Revenue has revised its publication that sets forth guidelines for the mining industry. Revisions include a more in-depth discussion of “equipment repair” and sourcing and provides that repairs are taxable at the location where the customer receives or makes the first use of that service after it is rendered. Wyoming sourcing rules define “receive” and “receipt” to mean taking possession of tangible personal property, making first use of services or taking possession or making first use of digital goods, whichever comes first. For instance, if equipment is repaired at the mine’s site, the service provider would collect sales tax based on the current tax rate in effect in the county where the service was rendered, since this is where the customer makes first use of that service. The publication also warns taxpayers that they must also be aware of use tax obligations when purchasing services out-of-state. Use tax may be incurred when a service is rendered out-of–state but the taxpayer makes first use of that service in Wyoming. For example, a mine in Wyoming ships equipment out-of-state to be repaired and once repaired the service provider ships the equipment back to Wyoming. Since the Wyoming mine will make first of that repair service in Wyoming, the repair is subject to Wyoming tax. If the out-of-state vendor is licensed to collect Wyoming sales tax, the vendor would collect sales tax based on the current rate in effect where the mine is located since this is where the mine is able to make first use of the service. However, when the out-of-state vendor is not licensed to collect Wyoming sales tax, the tax liability falls to the end consumer, in this case the mine, to remit use tax on the repair service. The use tax rate to be applied is the current tax rate of the county where the customer will make first use of the repair service. ( Wyoming Excise Tax Division Tax Publication 4, 08/01/2014 .)

Wyoming Sales And Use Tax — Guidelines for schools updated.
The Department of Revenue (DOR) has revised its sales and use tax publication for schools to include updated references to DOR rules. ( Wyoming Excise Tax Division Tax Publication 2, 08/01/2014 .)

Wyoming Sales And Use Tax — Taxidermy.
The Department of Revenue (DOR) has revised its sales and use tax publication on taxidermy to include updated references to DOR rules and new information on finding appropriate tax rates. ( Wyoming Excise Tax Division Tax Publication 6, 08/01/2014 .)

Wyoming Sales And Use Tax — Restaurants.
The Department of Revenue (DOR) has revised its sales and use tax publication for restaurants to include updated references to DOR rules. ( Wyoming Excise Tax Division Tax Publication Wyoming Sales and Use Tax Bulletins No. 08/01/2014(Sales Tax Guidelines for the Restaurant Industry), 08/01/2014 .)

Wyoming Sales And Use Tax — Computer sales and services.
The Department of Revenue has updated the recently issued sales and use tax bulletin that discusses issues related to the computer sales and services to correct the supporting authority, The bulletin, which was issued on July 1, 2014 (see State and Local Taxes Weekly , Vol. 25, No. 29, 07/21/2014) incorrectly refers to references to WY Dept. of Rev. Chap 2, Rules Sec. 13(d) and WY Dept. of Rev. Rules Chap 2, Sec. 13(dd) as WY Dept. of Rev. Rules Chap 2, Sec. 15(d) and WY Dept. of Rev. Rules Chap 2, Sec. 15(dd). ( 07/01/2014(Computer Sales and Services), 08/01/2014 .)

Wyoming Sales And Use Tax — Agricultural sales.
The Department of Revenue has updated the Agricultural Sales/Use Tax Guide to provide guidance on the taxation of veterinary services. The guide states that veterinary services, farrier services and related services for the health and welfare of the animal are nontaxable professional services, however, material and supplies, including bandages, splints, pharmaceuticals, biologicals, brushes, clippers, food, vitamins, etc. that are consumed as part of the veterinary service are taxable to the veterinarian or groomer performing the service. The guide also discussed the exemption for the sale of livestock, for feed used to feed livestock, and for fertilizer, fuel, farm implements, containers, transportation, and a variety of other materials and services common to farming and agriculture. ( Wyoming Excise Tax Division Tax Publication 1, 08/01/2014 .)

Wyoming Sales And Use Tax — Guidelines for the construction industry.
The Publication titled “Sales Tax Guidelines for the Construction Industry” has been updated to add the text of specific statutes and rules referenced in the guidelines. In general, the guidelines provide definitions relevant to taxation of various entities and aspects of the construction industry, as well as registration requirements for general contractors and subcontractors to which construction projects have been awarded in the state. ( Wyoming Excise Tax Division Tax Publication 8, 08/01/2014 .)

Wyoming Sales And Use Tax — Photography publication revised.
The Wyoming Department of Revenue has revised its publication: Sales Tax Guidelines for Photography to reflect updated statutory references. The revised publication contains no materials changes. Wyoming Excise Tax Division Tax Publication 7, 08/01/2014 – Sales Tax Guidelines for Photography.)

Wyoming Sales And Use Tax — Oil and gas services publication revised.
The Wyoming Department of Revenue has revised its publication: Sales and Use Tax Guidelines for the Oil, Conventional Natural Gas & Coal Bed Methane Industries. The revised publication provides the history of sales taxation of oil and gas services, discusses the taxability of services and the tangible personal property used in rendering those services to real or tangible personal property within an oil or gas well site, explains how Wyoming sources or jurisdictionally assigns sales tax on the sale of products and services, and provides definitions as set forth in the Wyoming statutes and rules. ( Wyoming Excise Tax Division Tax Publication 5, 08/01/2014 – Sales and Use Tax Guidelines for the Oil, Conventional Natural Gas & Coal Bed Methane Industries.)

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