In this 90-minute live webinar, sales tax expert Diane Yetter of the Sales Tax Institute will teach you what you need to know about the different forms of gross receipts taxes. Get expert guidance and answers to your questions at this live webinar so you can handle gross receipts taxes with confidence. Gross receipts taxes are hybrid, shape shifting taxes that can easily leave you confused if you don’t have the details straight. For example, Oregon’s Commercial Activity Tax became effective January 1, 2020. Many Washington cities have had local B&O taxes for years.ĭespite criticism for being inefficient and harmful, gross receipts taxes are making a comeback across the states to raise revenue. There has also been a recent trend for local gross receipts taxes such as the San Francisco Gross Receipts Tax, Payroll Tax and Homelessness Tax, the Portland Gross Receipts Tax, Philadelphia Gross Receipts, and a variety of local business licenses that measure the license fee on gross receipts such as Los Angeles and cities/counties in Virginia. The Washington Business and Occupation (B&O) Tax, the Ohio Commercial Activity Tax (CAT), the Oregon CAT, and the Texas Franchise (Margin) Tax all have distinct threshold, tax base, calculation, and exemption rules to understand. In other states, gross receipts blend income tax and sales tax features. However, unlike a sales tax, gross receipts taxes apply to business-to-business transactions in addition to purchases by the end consumer and typically apply to most sales including services. The seller is liable for the tax and must present the tax on the invoice to pass the tax on to the customer. Gross receipts taxes in some states, such as in New Mexico and Hawaii, function similarly to sales taxes. However, there are several variations imposed across the states. Generally speaking, “gross receipts tax” is a catch-all term for a tax on all business receipts rather than on net income. There can be a learning curve in understanding gross receipts taxes. The course is also designed for general practitioners, with minimal to no experience. This webinar is intended for financial and operations personnel-including tax, general accounting, accounts payable, sales, tax technology, purchasing and credit-who are tasked with managing gross receipts taxes as part of their responsibilities. Learn how to manage gross receipts taxes in this 90-minute webinar. You need a framework to determine if these taxes affect your business in order to stay compliant. There is a resurgence of gross receipts taxes of varying stripes across the United States that can lead to new nexus and filing obligations for businesses. However, most sales tax professionals specialize in just that – sales tax – and may not be aware of how to manage the specific nuances of gross receipts taxes. In many cases, the responsibility to manage these hybrid taxes falls to sales tax professionals. In some states, it is a replacement or additional income tax and yet in others it is administered as part of the business license process. Sometimes a state’s gross receipts tax may “look and smell” like a sales tax but is not applied in the same way. The imposition of gross receipts taxes borrows concepts from other tax types. Gross receipts taxes are generally levied and assessed against a seller based on the gross proceeds of all sales of tangible personal property and/or services (regardless of how they are taxed for sales tax) into a state without any deductions for costs of doing business.
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