Use Tax Pitfalls

We’ve said before that use tax tends to be the tax that sneaks up on people.  Income tax, property tax and sales tax all tend to be direct.  They’re hard to miss.  Use tax, which exists to more or less pick up what sales tax drops, is technically two taxes in Illinois, the Retailer’s Use…

Nexus

In the world of tax, “nexus” is something of a magic word.  It’s the catalyst, the decider that lies between taxation and tax-exempt.  Put most simply, nexus is a collective term that refers to all the links, the connections, the contacts, etc. between a taxpayer and political jurisdiction (e.g. a state).  This is of paramount…

Alphabet Soup

It can be helpful to think of sales tax and use tax as mirror images of each other.  They’re closely related and they’re generally two ways of getting at the same thing.  In both cases the state is collecting a tax on a purchase or a service.  The main difference is whether that tax appears…

Sales Tax

These days it’s all about sales tax.  Senator Durbin hasn’t introduced his Main Street Fairness Act, the bill that would allow states to tax online retailers, but he is expected to do so soon.  In the mean time, several states have introduced legislation to create their own versions of the affiliate tax law first adopted in New…