Tax laws

January 2022 review: the tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that may affect your tax compliance.

As real-world online sellers face a wave of train robberies and online marketplaces struggle to prevent the sale of stolen goods, a growing number of businesses are moving into the metaverse. This month’s roundup looks at these questions and more.

Nuts and bolts

A sales tax break.

Energy Star products are exempt from Maryland sales tax on February 20. Specified emergency preparedness supplies are exempt from Texas sales tax on April 24. And on August 7, clothing priced at $125 or less and school supplies priced at $50 or less are exempt from sales tax in West Virginia. Why? Sales tax holidays. Learn more.

Change is happening.

New exemptions and procurement rules are just some of the changes affecting sales tax rates in February 2022. Learn more.

Change over time.

Although services now make up the bulk of the United States economy, many services in many states are still not subject to sales tax. Indiana and Nebraska are two states looking to change that, and there may well be others. Learn more.

Different shots.

Both LLCs and sole proprietorships have their advantages, but they are governed by different regulations and must comply with different tax requirements and obligations. Learn more.

Keep it real.

Some people spend time in virtual realities because they prefer it to their “real” life. Some people go there to have a little fun. And some people are there to make money. For there is money to be made in the metaverse – and where there is money, sooner or later there will be taxes. Learn more.

Allow, please.

Before you can collect and remit sales tax in a state, you must obtain a sales tax permit. Obtaining that all-important piece of paper can be more difficult and more expensive in some states than in others. Learn more.

We will take it.

One of the many reasons Tennessee is not a full member of the Simplified Sales and Use Tax Agreement is that it has not accepted tax exemption or resale certificates. other states. This changed on January 10, 2022. Learn more.

beyond the border

Go global.

New markets and opportunities await entrepreneurial companies willing to venture into the global marketplace, but international sellers also face a host of complex cross-border compliance issues. Learn more.

Exit watchmaking springs, place drones.

Nearly 200 countries use the World Customs Organization’s Harmonized Tariff Schedule (HS) to categorize and tax cross-border shipments, and HS codes changed on January 1, 2022. Learn more.

tax online sales

No excuses.

Minnesota has released updated guidelines for market facilitators and sellers. Collection requirements for marketplace vendors went into effect October 1, 2018, and were changed on October 1, 2019, when the state revised its economic nexus threshold. Learn more.

Stolen items.

Theft is a growing problem for online sellers and marketplaces. In what looks a bit like an explosion from the past, freight trains are hit, contents stolen or left at the nozzles. And at the other end of transactions, market facilitators are asked to ensure that their third-party sellers are not selling stolen goods. Learn more.

From the pump

Solutions create problems.

Electric vehicles may not solve all of our problems, but they will likely displace their gas-guzzling friends more and more. This will affect tax revenues – and therefore tax policy. Learn more.

Of the road

Cancel culture.

The hospitality industry may have recovered from the worst of COVID-19, but more hurdles lie ahead. In addition to fluctuating bookings and staffing issues, many hospitality businesses face higher operating costs, new regulations and tax requirements, and even existential threats. Learn more.

Words matter.

States are working to clarify occupancy taxes that distance sellers and market facilitators are responsible for collecting. In Kansas, market enablers are not responsible for taxes due on accommodation provided by a hotel, but are responsible for taxes due on rooms that are not hotel rooms. Go figure. Learn more.



Major focal points for alcoholic beverages in 2022 will likely include a continued review of markets and delivery apps, more calls for on-the-go cocktails and a push by the spirits industry to get the same DTC rights as establishments. wineries. Learn more.

Share the love.

Although wineries can ship directly to consumers (DTC) in most states, this is a privilege still out of reach for most breweries, distilleries and retailers. California Senate Bill 620 could open a huge DTC market to breweries and distilleries. Learn more.

Some thread

Old laws, new tricks.

More and more businesses are communicating with their customers through messaging apps that use web integrations, or APIs, rather than standard cellphone-to-cellphone SMS transmission. While this can streamline communications, it’s often unclear which decades-old tax laws govern these new technologies. Learn more.

Check Avalara Resource Center for more useful information.