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| State Sales Tax Rate Change Announcements |
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State Tax Rate Change Announcements: MN, OH, WV,
ND & NM |
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5/2/2008 |
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Minnesota --Sales and Use
Tax: Local Transit Improvement Taxes Discussed
A Minnesota Department of Revenue release
discusses the new local sales and use tax
and vehicle excise tax for transit
improvements that will be imposed in Anoka,
Dakota, Hennepin, Ramsey, and Washington
counties (the transit tax area) beginning
July 1, 2008. The transit improvement sales
and use tax rate is 0.25%, and the vehicle
excise tax imposed on vehicle sales in lieu
of the transit improvement sales tax is $20
per vehicle sale. The taxes are administered
by the Department and reported at the same
time state sales and use taxes are reported.
The adoption of the taxes was previously
reported.
The tax should be charged to customers from
inside or outside the transit tax area who
pick up items in the area for business or
personal use, even if the items are taken
out of the transit tax area. The tax should
also be charged for taxable services
performed in the transit tax area. However,
the tax should not be charged on sales of
taxable items that a retailer delivers
outside the transit tax area using the
retailer's vehicle, U.S. mail, or parcel
post.
The transit improvement tax does not apply
to sales of tangible items for which there
is a contract in force before July 1, 2008,
if the items are delivered before July 31,
2008. The tax is also inapplicable to
services provided through July 31, 2008, if
there is a contract for the service in
effect before July 1, 2008, if payment is
made before that date. The transit
improvement tax does not apply to lease
payments that include periods before July 1,
2008, but it applies to lease payments
beginning July 1, 2008, or later.
Construction contractors will claim an
exemption on Form ST3, which will be revised
and available on the Department's Web site
in June 2008. Contractors will not need to
apply for an ST8 exemption certificate, as
previously required. The transit improvement
sales and use tax does not apply to building
materials for a lump-sum contract in force
before July 1, 2008, if delivery is made
before December 31, 2008.
Transit Improvement 0.25% Sales and Use
Tax, Minnesota Department of Revenue,
April 23, 2008
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5/1/2008 |
Ohio --Sales and Use Tax:
Local Tax Rate Changes Announced
Effective July 1, 2008, the sales and use
tax rate in Summit County, Ohio is increased
to 6.50%. The rate in Union County is
increased to 6.75%.
The City of Dublin has become a member of
the Central Ohio Transit Authority (COTA).
Effective July 1, 2008, the COTA permissive
sales and use tax will be imposed in the
portions of Dublin located in Delaware and
Union counties. As a result, the rates in
both of those areas will increase to 7.25%.
The rate in the portion of Dublin located in
Franklin County will not change, as the area
is already subject to the COTA tax.
Sales and Use Tax Rate Change Notice,
Ohio Department of Taxation, May 2008
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4/30/2008 |
West Virginia --Sales and
Use Tax: SST Taxability Matrix Updated
West Virginia has updated its Streamlined
Sales and Use Tax (SST) taxability matrix to
reflect sales and use tax rate changes that
take effect July 1, 2008, for sales of
certain food and food ingredients intended
for human consumption, and to reflect
changes in the taxation of health care
products for animals. The revised taxability
matrix is available on the West Virginia
State Tax Department's Web site at
http://www.state.wv.us/taxrev/sst/matrix0408.pdf.
Food and Food Ingredients
The updated matrix reflects that effective
July 1, 2008, the sales and use tax rate
decreases from 4% to 3% for food and food
ingredients, candy, and dietary supplements.
The sales and use tax rate remains at 6% for
food sold through vending machines, soft
drinks, food sold in a heated state, food
sold with eating utensils provided by the
seller, and prepared food.
The rate reduction from 4% to 3% also
applies to sales of the following prepared
food options that are excluded from the
definition of prepared food:
-- food sold without eating utensils
provided by a seller whose primary North
American Industry Classification System
(NAICS) classification falls within Sector
311 (Food Manufacturing), except Subsector
3118 (Bakeries and Tortilla Manufacturing);
-- food sold without eating utensils
provided by the seller in an unheated state
by weight or volume as a single item; and
-- bakery items sold without eating utensils
provided by the seller.
The decrease in the rate to 3% is part of a
gradual reduction of the tax rate for food.
Details of this decrease and the gradual
reduction were previously reported.
Health Care Products for Animals
The revised matrix reflects that the
following health care products for animals
are taxable:
-- drugs for animal use with a prescription;
-- insulin for animal use without a
prescription;
-- insulin for animal use with a
prescription;
-- medical oxygen for animal use with a
prescription; and
-- over-the-counter drugs for animal use
with a prescription.
Taxability Matrix, West Virginia
State Tax Department, April 2008
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4/29/2008 |
North Dakota --Sales and Use
Tax: Local Tax Changes Announced
The following local North Dakota sales and
use tax changes are effective July 1, 2008.
The city of Cooperstown increases its sales,
use, and gross receipts tax from 1% to 1.5%,
and increases its maximum tax/refund cap
from $25 to $50 per transaction.
The city of Drake increases its sales, use,
and gross receipts tax from 1% to 2%.
The city of Glenburn imposes a sales, use,
and gross receipts tax of 1%. Glenburn's
ordinance includes a maximum tax/refund cap
of $25 per transaction and provides for a
contractor's limited exemption when a
contractor's certificate is used. The
ordinance does not provide for permit holder
compensation.
Letter to North Dakota Sales, Use and
Gross Receipts Tax Permit Holders, North
Dakota Office of State Tax Commissioner,
April 24, 2008
West Virginia --Sales and
Use Tax: Food Tax Rate, Electronic Filing,
Prepaid Wireless Changes Made
The West Virginia State Tax Department
reminds taxpayers of upcoming changes
regarding the sales and use tax rate for
sales of food, the electronic filing of
sales and use tax returns, and the taxation
of prepaid wireless calling services.
Effective July 1, 2008, the sales and use
tax rate for the sale or use of food and
food ingredients intended for human
consumption decreases from 4% to 3%.
However, the sales and use tax rate remains
at 6% with respect to prepared food, food
sold through vending machines, soft drinks,
food sold in a heated state, and food sold
with eating utensils provided by the seller.
The reduction to 3% is part of a phase-down
of the tax rate on food. The original 6% tax
rate for food was reduced to 5% on January
1, 2006, and was further reduced to 4% on
July 1, 2007.
Beginning May 15, 2008, taxpayers who file a
West Virginia Consumer's Sales and Service
Tax Return (Form WV/CST-200) electronically
must file through
https://mytaxes.wvtax.gov. Paper copies
of the form may be printed from
http://www.state.wv.us/taxrev/uploads/cst200s.pdf.
Prepaid Wireless Calling Services
Beginning July 1, 2008, prepaid wireless
calling services are subject to consumers
sales and use tax at a rate of 6%. The
change in the law is due to recently enacted
legislation that includes the furnishing of
prepaid wireless calling services for
consideration in the definition of "sale"
for purposes of West Virginia consumers'
sales and service tax.
A "prepaid wireless calling service" is a
telecommunications service that provides the
right to use mobile wireless services and
other non telecommunications services
(including the download of digital products
delivered electronically) that are paid for
in advance and sold in predetermined dollars
or units that decline with use in a known
amount. Examples of such services include
wireless airtime cards, prepaid wireless
ring tone download cards, prepaid cellular
phone cards, and prepaid cellular
rechargeable minute cards.
Prepaid wireless calling services do not
include prepaid land line phone cards or
prepaid land line rechargeable minute cards.
Also not included (if not sold for use with
or by delivery through a mobile wireless
services) are prepaid music download cards,
prepaid game download cards, prepaid
internet access cards, or gift cards.
Press Releases, West Virginia State
Tax Department, April 25, 2008
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4/28/2008 |
New Mexico --Sales and Use
Tax: Sierra County Voters Approve Tax Increase
to Fund Spaceport
In a special election, the voters of Sierra
County, New Mexico, approved a 0.25% gross
receipts tax increase to fund Spaceport
America, effective January 1, 2009.
Press Release, New Mexico Governor
Bill Richardson, April 22, 2008; E-mail,
Sierra County Treasurer, April 25, 2008
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