Message from Nelson & Company, P.S., CPAs
Important "New Sales Tax" Information
Two major and important changes in the way Washington State retailers and out-of-state and Internet retailers collect Washington State sales tax begin July 1, 2008.
- Washington State retailers delivering or shipping goods to customers in Washington will need to change how they collect sales tax. Sales tax will be collected based on the local tax rate where the customer receives the merchandise.
Ex: A business in Tacoma delivers or sells merchandise to a customer in Eatonville. The business must collect sales tax based on Eatonville's local tax rate, and report said tax providing the local tax code for that jurisdiction.
- Washington State Gov. Christine Gregoire signed a measure that "encourages" Internet and out-of-state companies to collect sales tax on purchases made by Washington residents which is also to be based on the local tax rate where the customer receives the merchandise. The measure, requested by Gregoire, easily passed the House and Senate.
Washington joins 21 states as members of the "Streamlined Sales and Use Tax Agreement" (SSUTA). The State Department of Revenue estimates Washington State will get $35 to $40 million in sales taxes from out-of-state companies that sell products to Washington residents. Under the measure, the state or jurisdiction where the product is delivered gets the tax. Current full member states are: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, Rhode Island, South Dakota, Vermont and West Virginia. Associate member states are: Arkansas, Nevada, Ohio, Tennessee, Utah and Wyoming.
People who bought items from out-of-state companies were supposed to pay the sales tax all along, but rarely did.
Both changes are effective July 1, 2008, giving businesses and local governments time to implement the taxes.
FORMER LAWMAN, POLITICIAN
IRS Times & Inquirer
NELSON & COMPANY, P.S.
CERTIFIED PUBLIC ACCOUNTANTS
253-752-9522 | 1-800-669-0137
CA Woman Got 'Dead' Refunds
A Southern California woman was charged in a federal criminal complaint that alleges she stole the identities of hundreds of deceased people and used their personal information to file fraudulent federal tax returns that sought more than $1 million in refunds.
Uzeegoa Makeba Sayles, 39, of Hawthorne, CA allegedly filed more than 200 fraudulent tax returns with the Internal Revenue Service.
According to the affidavit in support of the complaint, during a six-year period Sayles fraudulently sought $1,070,308 in refunds, which resulted in the United States government actually paying $603,971.66.
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