January 28, 2014

Food, Teeth, Yachts, Alcohol and Marijuana - Thomson Reuters Reveals Quirky Sales Tax Laws

The Tax & Accounting business of Thomson Reuters uncovered a sampling of quirky sales tax changes passed or implemented in 2013.

NEW YORK - The Tax & Accounting business of Thomson Reuters today revealed a sampling of quirky sales tax changes passed or implemented in 2013.

  • Hungry for revenue, two Massachusetts cities increased the tax on meals from 6.25 percent to 7 percent. The cities? Sandwich and Salisbury.
  • Straighter teeth just got cheaper in Arizona. Orthodontic devices are no longer subject to sales and use tax.
  • Connecticut did away with its luxury tax on yachts, and tax is exempted all together if the boat is docked 60 days or less a year.
  • In North Carolina, chiropractors must collect sales tax on nutritional supplements and vitamins provided as part of a patient’s treatment plan, and students must pay sales tax on meals purchased on college campuses.
  • Rhode Island eliminated sales and use tax on wine and spirits sold at package and liquor stores from Dec. 1, 2013, through March 31, 2015.
  • The legalization of recreational marijuana comes with a hefty tax. Both Washington and Colorado are taxing pot at a whopping 25 percent.
  • In Washington state , hiring a personal chef is a taxable service, and the chef is required to collect sales tax. However, if a meal is prepared with raw or undercooked eggs, fish, meat or poultry and refrigerated or frozen for consumption at a later time, and cooked prior to consumption to prevent food-borne illness, then the tax is waived.

The research division at the Tax & Accounting business of Thomson Reuters continually monitors regulatory developments around the world so the thousands of new rules and rates enacted each year are reflected in the company’s indirect tax software platform. ONESOURCE Indirect Tax is used by leading global companies to seamlessly and accurately comply with tax regulations. For more information, visit: https://tax.thomsonreuters.com/products/brands/onesource/indirect-tax.

Thomson Reuters

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