SALES TAX

When South Dakota won their court case against Wayfair, Inc in 2018, most states changed their sales tax rules. Before the ruling, a business needed to have a physical presence in a location to collect sales tax. Now, each state can stipulate their own rules and many of them did. The idea behind the court case was that states were loosing sales tax revenue to online retailers. The case allowed states to put the responsibility on the businesses and force them to collect and submit sales tax based on the location the item is delivered.

Colorado also changed collection of sales tax to where the item is delivered when House Bill 19-1240 was passed. Unless you are a small business with less than $100,000 in sales, this now applies to you. Colorado has one of the most complicated sales tax systems in the US. Did you know some cities span more than one county and that means there are different tax rates based on the address? With 64 counties and over 420 cities, each with their own tax rate, that is a lot to keep track of.

Our Sales Tax Services Include:
• Making sure QuickBooks© has each state, county and city tax item and group set up correctly
• Determining if you should be reporting monthly, quarterly or annually. Each entity you file with will be different
• Setting up online reporting whenever possible
• Reviewing your sales tax liabilities to make sure everything is current
• Filing each state and local report
• Setting up new jurisdictions at the state and city level when new customer's are added in locations not already set up