As of June 1, 2024, the State of Florida reduced the state sales tax rate on commercial real property lease payments from 4.5% to 2%. All commercial leases with an occupancy period that started on or after June 1, 2024 will be impacted. The new 2% tax rate applies to both base rent and additional rent.
What if payments were made in advance of a June 1, 2024 occupancy? The new 2% rate still applies even if rent payments were paid in advance and received prior to a tenant’s June 1, 2024 occupancy.
Be careful, however, this change to the state sales tax does not affect any local discretionary sales ...
The State of South Carolina has now adopted legislation allowing “pass through” entities to elect each year to be taxed at the entity level on their active trade or business income instead of having their owners taxed at the individual level on this income. This includes partnerships, S-corporations and LLCs taxed as partnerships or S-corporations. This election can be filed for tax years beginning after December 31, 2020.
South Carolina has now joined a growing number of states that have enacted federal state and local tax “workaround” legislation, and which shifts state ...
The South Carolina Department of Revenue (DOR) has issued a proposed Revenue Ruling which will have a significant impact on South Carolina tobacco retailers, if finalized in its present form. The proposed Revenue Ruling, to be effective on January 1, 2020, addresses tobacco manufacturer rebates and refunds to retailers, and which DOR characterizes as “buydowns” and “promotional payments”- i.e. sales volume discounts. The proposed Revenue Ruling determines that these payments to retailers are subject to sales tax.
Tobacco manufacturers have provided their retailers ...
South Carolina imposes sales tax on retail sales of tangible personal property. South Carolina generally does not impose a sales tax on intangible property, however, certain intangible property is deemed to be tangible personal property that is subject to sales tax. Deemed tangible personal property includes charges for communications. South Carolina defines charges for communications to include the proceeds accruing from the charges for the ways or means for the transmission of the voice or messages. The South Carolina Department of Revenue (DOR) takes the position charges ...
The Alabama Supreme Court recently issued an opinion providing guidance on how computer software and related services are taxed by the State of Alabama for sales tax purposes. This is the first such opinion in this area by the Alabama Supreme Court in over 20 years.
In Ex Parte Russell County Community Hospital, LLC, Medhost of Tennessee, Inc. (“Medhost”) sold Russell County Community Hospital (“Hospital”) computer software and the accompanying hardware/equipment, and which Medhost later installed. In its invoice to the Hospital, Medhost did not itemize the software and ...
In South Carolina, a maximum or “capped” sales tax of $500 ($300 for sales on or before June 30, 2017) is imposed on the sale of motor vehicles and certain other vehicles. Under the facts of a recent South Carolina Administrative Law Court (ALC) decision, a South Carolina motor sports dealer sold all-terrain vehicles (ATVs) and side-by-side vehicles (UTVs) and paid the maximum tax on these sales. The South Carolina Department of Revenue (DOR) audited the dealer and determined the maximum tax did not apply to these ATV/UTV sales because they were not qualifying motor vehicles in ...