Tax Foundation has posted A Review of 2010′s Changes in State Tax Policy. The article provides key changes in state income, sales, and other selective sales taxes such as cigarette taxes and soda taxes. A link to the article is below.
From the Wall Street Journal:
State tax officials, under orders from cash-strapped Albany to ramp up their audit and compliance efforts, have begun to enforce one of the more obscure distinctions within the state’s sales tax law.
In New York, the sale of whole bagels isn’t subject to sales tax. But the tax does apply to “sliced or prepared bagels (with cream cheese or other toppings),” according to the state Department of Taxation and Finance. And if the bagel is eaten in the store, even if it’s never been touched by a knife, it’s also taxed.
When you step up to order your cheeseteak at Pat’s King of Steaks, you order it “wit or wit out” onion. Well, for bloggers in Philly, they can only maintain their blog wit a tax. According to multiple articles, Philadelphia imposes a $300 “business privilege license” tax on local bloggers in addition to city wage taxes and taxes on net profits earned from blogging.
NBC Philadelphia: Pay Up or Shut Up: Bloggers Charged $300 For Their Thoughts
Washington Examiner: Philly requiring bloggers to pay $300 for a business license
Mashable:Philadelphia Tax Code Sparks Big Controversy with Small Bloggers
On Friday, a New Jersey state tax court ruled on appeal that a filing by three Trump casinos for overpaid utility taxes was barred by the four-year statute of limitations. The appeal was to recover nearly $3 million in overpaid taxes which were charged in error by Atlantic City Electric between 1998 and 2001. The appeals court dismissed Trump’s attorneys argument that the statute of limitations should have been extended because the tax was not clear on the bill. The court held that the error could have been discovered earlier.
Businessweek, Trump casinos lose appeal on $2.7 million tax overpayment
For those that are in the market for a new Jansport backpack, a new lunchbox, or trapper keeper, now may be the perfect time to make your purchase. In many states, this month marks the start of sales tax holidays. WalletPop has kindly listed which states are offering a sales tax breaks and the dates the the sales tax holiday runs through. For many states on the list, sales tax holiday season is over. However, if you live in one of these states you are in luck.
Connecticut: From Aug. 15-21, clothing and footwear costing less than $300 per item are exempt. Store rain checks for clothing — given out to customers when an item is on back order — are also good for the tax holiday. So if something is sold out and you get a rain check for it during the tax holiday, you won’t have to pay sales tax when the item is available.
Florida: From Aug. 13-15, clothing and books costing $50 or less and school supplies of $10 or less. Items bought at a theme park such as Walt Disney World, hotels or airports are still taxable.
Illinois: Through Aug. 15, clothing, shoes and school supplies costing less than $100 each.
Maryland: From Aug. 8-14, clothing and shoes of $100 or less are exempt from sales tax.
Massachusetts: Aug. 14 and 15, most items costing $2,500 or less are exempt from the sales tax. While beer, wine and liquor bought to be consumed later are exempt from sales tax that weekend, cars, boats and tobacco products are still subject to the tax.
Texas: On Aug. 20-22, clothing, footwear and school backpacks of $100 or less per item are exempt.
From NPR’s Cities, Websites and Hotels at Odds Over Taxes:
Atlanta won a court case last week that will bring in more money for the city. And the same legal argument heard there — about whether the city now is simply able to collect taxes that it said it was already owed, or whether it’s imposing a new tax altogether — has taken place in courtrooms all across the country.
A seemingly technical question about taxing hotel rooms has triggered dozens of lawsuits nationwide, as well as a big-money lobbying fight in Congress.
On one side are online travel companies such as Expedia and Travelocity, which claim that cities — because of their miserable budget situation — are attempting a money grab by demanding tax payments to which they’re not entitled.
Method Man plead guilty to tax evasion charges Monday. The Hip Hip artist was arrested on August 9 for failure to pay state and personal income taxes. According to reports, he wrote a $40,000 restitution check on the spot after owning approximately $106,000 in taxes.
The Associated Press, Method Man Pleads Guilty to NYC- Tax Evasion Charge
ABC News, Method Man Pleads Guilty to Tax Evasion
Fox News, Method Man Pleads Guilty to Tax Evasion Charge
New York Daily News, Wu-Tang rapper Method Man Pleads Guilty to Attempted Tax Evasion, Pays $106K in Restitution
The Wall Street Journal is reporting that shrinking the amount of charitable contributions New Yorkers earning more than $10 million can deduct from there state taxes is gaining support from Gov. David Paterson and lawmakers:
Under the plan, the amount those high earners could be allowed to deduct may drop to as little as 25% of their giving. The current limit is 50%.
Depending on where the limit is set, lawmakers estimated the state could generate $60 million to $100 million from an estimated 3,500 taxpayers, including Mayor Michael Bloomberg, who donated $254 million in 2009.
“We haven’t seen the details, but it sounds like it would really hurt the charities and nonprofits that people rely on now more than ever,” said Stu Loeser, a spokesman for Mr. Bloomberg.
The tax would be the third significant hike targeted at wealthy residents that Albany has passed during the Paterson administration.
The North Carolina House of Representatives approved a bill giving among other things a tax incentive to movie stars and directors. The legislation passed 80 to 28, allows the salaries of star actors and directors to count toward the amount they can write off their state taxes. Currently, the cap on each individual is $1 Million. The movie production tax incentive is part of a large tax break legislation that is on its way to the Senate. According to reports, the legislation could cost as much as $300 Million in uncollected taxes over the next five years.
Charlotte Observer, Bill to lure NC biz with tax breaks gets House OK
According to the New York Times, Gov. David A. Paterson has reached a tentative deal with leglislative leaders that would raise New York’s cigarette tax by $1.60 per pack making it the highest cigarette tax in the nation:
The proposal, which officials said Mr. Paterson would include in an emergency budget bill due for a vote on Monday, would also raise wholesale taxes on other tobacco products like chewing tobacco, bringing the tax on those products closer in line with those of cigarettes.
In New York City, which levies steep taxes of its own on tobacco products, a pack of cigarettes would come with a tax of $5.85, making it the nation’s first city to break $5, antismoking advocates said. That would bring the overall cost of a pack of premium cigarettes above $10 in many stores in the city.
The legislation will also include a plan to begin collecting taxes on cigarettes sold off the reservation by Indian tribes in New York, an issue that has provoked confrontations between State Police officers and protesting tribe members in years past.
Here is a map from Tax Foundation, which shows the state excise tax rates on cigarettes per 20-pack of cigarettes as of January 1, 2009. Click the map to enlarge.
