New Mexico Gross Receipts Tax Rate Changes July 2012

The state of New Mexico imposes a Gross Receipts Tax instead of a Sales Tax. However, the effect on the consumer is generally the same as if it were a sales tax. The New Mexico State Taxation and Revenue Department states:

New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax. The gross receipts tax rate varies throughout the state from 5.125% to 8.8675% depending on the location of the business.

The following counties and cities are modifying their tax rates effective July 1, 2012:

Village of Tijeras, Bernalillo County – increasing 0.5% from 6.9375% to 7.4375%.

Artesia, Eddy County – increasing .25% from 7.1875% to 7.4375%.

Otero County – increasing .125% with the following new rates applying to these areas:

• Alamagordo – increasing from 7.5% to 7.625%
• Cloudcroft – increasing from 7.25% to 7.375%
• Tularosa – increasing from 7.25% to 7.375%
• Remainder of county – increasing from 5.8125% to 5.9375%

Taos County – decreasing by 0.5% with the following new rates applying to these areas:

• El Prado Water and Sanitation District – decreasing from 7.3750% to 6.8750%
• El Prado Water and Sanitation District (within water district and city limits) – decreasing from 8.4375% to 7.9375%
• Ell Valle de Los Ranchos Water & Sanitation District – decreasing from 7.3750% to 6.8750%
• El Valle de Los Ranchos Water & Sanitation District (within water district and city limits) – decreasing from 8.4375% to 7.9375%
• Picuris Pueblo (1)* and (2)** – decreasing from 7.1250% to 6.6250%
• Questa – decreasing from 8.1875% to 7.6875%
• Questa Airport – decreasing from 7.1250% to 6.6250%
• Red River – decreasing from 8.4375% to 7.9375%
• Taos (city) – decreasing from 8.1875% to 7.6875%
• Taos (airport) – decreasing from 7.1250% to 6.6250%
• Taos Pueblo (1)* and (2)** – decreasing from 7.1250% to 6.6250%
• Taos/Taos Pueblo (1)* and (2)** – decreasing from 8.1875% to 7.6875%
• Taos Ski Valley – decreasing from 8.8675% to 8.1875%
• Remainder of county – decreasing from 7.1250% to 6.6250%

The state of New Mexico has indicated this rate schedule is valid from July 1, 2012 through December 31, 2012.

* Indicates sales to tribal entities or members

**indicates sales to tribal non-members by tribal non-members

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West Virginia Food Sales Tax Reduction July 2012

Last August, West Virginia Governor Earl Ray Tomblin signed S.B. 1001 into law. S.B. 1001 initiates a gradual phasing out of the sales tax on food with a stipulation that must be met prior to full removal of the sales tax on food.

On January 1, 2012, the first reduction brought the sales tax on food to two percent. Beginning July 1, 2012, the sales tax is supposed to reduce to one percent.

After June 30, 2013, the sales tax on food is scheduled to “cease…Provided, That [sic] the cessation of tax after June 30, 2013, authorized by this subsection shall be suspended if the balance of funds as of December 31, 2012, in the Revenue Shortfall Reserve Fund …does not equal or exceed twelve and one-half percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, 2012.”

In laymans language, the Governor’s press release states it this way:

Senate Bill 1001 reduces the food tax to 2 percent on January 1, 2012 and then to 1 percent on July 1, 2012. The bill removes the tax if on December 31, 2012, the percentage of the general revenue budget in Rainy Day Fund A is at least 12.5 percent. In addition, Senate Bill 1001 increases the cap on mandatory surplus transfers to Rainy Day Fund A, from 10 percent to 13 percent of the general revenue budget.

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Maryland tobacco tax hike

The Maryland General Assembly passed a bill that raises the tax on certain tobacco products (SB 1302). 

The bill doubles the tax on “other tobacco products” from 15% of the wholesale price to 30% of the wholesale price (see Example 1). Maryland law defines other tobacco products* as,

• ” . . . (1) any cigar or roll for smoking, other than a cigarette, made in whole or in part of tobacco; or
• (2) any other tobacco or product made primarily from tobacco, other than a cigarette, that is intended for consumption by smoking or chewing snuff.”

In addition, the bill raises tax on non-premium cigars from 15% of wholesale price to 70% of the wholesale price (see Example 2).

• Example 1: The wholesale price is $10. Tax will be $3.
• Example 2: The wholesale price is $10. Tax will be $7.

*Search under Business regulation, article 16.5-101.

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Oklahoma Electronic Payment Requirements Updated

Oklahoma State has modified the filing requirements and deadline dates for electronic filing of sales and use tax returns.

Letters regarding electronic sales tax filing and use tax filing is being sent to all businesses affected that states:

“Payments are considered electronically filed if the payments are made by ACH Debit, ACH Credit or by credit card. Beginning in July 2012, follow the schedule below for reporting and remitting sales tax:”

• July 13 – File your June report and remittance.
• July 20 – Pay your estimated tax amount for July 1-15 by electronic funds transfer (EFT).
• August 20 – File July report electronically / Pay July 16-31 balance by EFT / Pay estimated tax amount for August 1-15 by EFT.

These changes are effective for both sales tax and business use tax.

The “…law (Title 68 O.S. I405 D, Supp. 2005) requires taxpayers owing an average of Twenty-five Hundred Dollars ($2,500.00) or more per month in total use taxes in the previous fiscal year to file and remit their taxes electronically.”

Additional requirements include:

Taxpayer must “make an electronic estimated payment of tax liability for the 1^st through the 15^th of the month. Payment is due by the 20^th of the current month. The estimated payment can be determine by one of two methods:

• 90% of the actual tax liability for the first two weeks of the month; or
• 50% of the tax collected for the same time period for the previous year.”

Reports and payments are always due by the 20th of the month.

Oklahoma’s web-based filing system is called QuickTax. To access QuickTax, log onto www.tax.ok.gov and select Quick Tax Business Tax Filing System.

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Illinois July Sales Tax Rate Changes

A number of Illinois counties and cities are increasing their general merchandise sales tax rates effective July 1, 2012.

City and District Changes

• Bartonville, Peoria County – increasing 0.50% from 6.75% to 7.25%.
• Bushnell, McDonough County – increasing 0.50% from 6.75% to 7.25%.
• Crest Hill, Will County – increasing 1.0% from 7.0% to 8.0%.
• Creve Coeur, Tazewell County – increasing 1.0% from 6.75% to 7.75%.
• East Peoria, Tazewell County – Inside Costco Area Business District – increasing 0.50% from 8.0% to 8.5%.
• East Peoria, Tazewell County – Inside Target Area Business District – increasing 1.0% from 8.0% to 9.0%.

• Elgin, Cook County – increasing 0.50% from 9.0% to 9.5%.
• Elgin, Kane County – increasing 0.50% from 7.75% to 8.25%.
• Godfrey, Madison County – Inside Godfrey Business District – increasing 1.0% from 6.85% to 7.85%.
• Kildeer, Lake County – increasing 0.5% from 7.0% to 7.5%.
• Mascoutah, St. Clair County – Inside Mascoutah Business District – increasing 1.0% from 7.6% to 8.6%.
• Mount Vernon, Jefferson County – increasing 0.5% from 7.5% to 8.0%.
• Niles, Cook County – increasing 0.25% from 9.25% to 9.5%.
• Northfield, Cook County – increasing 0.75% from 8.25% to 9.0%.
• Oak Forest, Cook County – increasing 1.0% from 8.25% to 9.25%.
• Oak Lawn, Cook County – increasing 0.25% from 8.75% to 9.0%.
• Plainfield, Kendall County – increasing 0.5% from 8.25% to 8.75%.
• Plainfield, Will County – increasing 0.5% from 6.75% to 7.25%.
• Tuscola, Douglas County – increasing 0.5% from 6.75% to 7.25%.

Countywide Changes

Countywide changes are imposed in the incorporated and unincorporated areas of the county.

• Johnson County is increasing the overall county rate by 0.5%.
• Saline County is increasing the overall county rate by 1.0%.

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Arizona Use Tax Line Eliminated

Arizona repealed their consumer use tax declaration requirement.

Arizona residents no longer have to report their use tax liability on their income tax returns now that Governor Jan Brewer signed Senate Bill 1214 into law. However, consumers who make purchases where the retailer does not collect sales tax still owe use tax.

Arizona collected at least $744,000 from the use tax declaration requirement.

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Richland County Ohio Rate Change

According to the Ohio Department of Taxation, Richland County, Ohio will increase its sales tax from 6.75% to 7.00% effective July 1, 2012.

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Alameda California Voters Will Determine Sales Tax Fate June 5

On June 5, Alameda, California voters “…will decide the fate of a ballot measure that would raise the city’s sales tax by half a cent for the next 30 years to fund improvements to public safety and cultural facilities.”

The measure, called Measure C, is intended to increase the sales tax from 8.75 percent to 9.25 percent in order to:

• Modernize responses to 911 emergency calls
• Replace a condemned fire station
• Repair three aging fire stations
• Create a citywide emergency operations center
• Replace outdated police and fire vehicles

In addition to the community safety improvements, the revenue is intended to help pay for:

• Rebuilding Carnegie Library
• Renovating the city swim center
• Constructing an all-weather lighted sports field

FOR

KTVU.com reports that firefighters, policeman, swimming pool advocates, Little League and Pop Warner supporters are all proponents of Measure C.

AGAINST

Opponents argue that the sales tax increase would mean “…the city would join Union City in having the highest sales tax in Alameda County.” Alameda activist David Howard said, “It would be bad for local businesses because people would shop outside of Alameda.”

AND THAT’S NOT ALL

The sales tax hike measure, Measure C, is not the only measure on the ballot in June. The voters are expected to decide on measure that affect the Peralta Community College District, the Dublin Unified School District, the Hayward Unified School District and the New Haven Unified School District.

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Sunset Hills Missouri To Determine Fate of Sales Tax Extension Aug 7

Voters in Sunset Hills, St. Louis County, Missouri will get to decide on August 7, 2012 whether to continue an existing sales tax. The half-cent sales tax was passed in 1994 and is due to sunset in 2016.

The funds have been dedicated to pay back bonds taken out to pay for “…capital improvements…[such as] building the police headquarters, a public works building, an addition on to the city hall and improvements to Watson Trail Park.”

According to Art Havener, president of the Finance Committee, “The sales tax brings in an average of $875,000 in annual revenue.” A continuation of that funding is needed for ongoing maintenance. Without it, a number of capital improvements will have to be delayed or cancelled.

Although the extension has unanimous support, two board members voted against it because there is no sunset date. Another concern was that there were not enough specific details on future capital improvement projects to be clear what the continuation of the sales tax would fund.

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Pearl River County Proposes Countywide Sales Tax Hike

Pearl River County, Mississippi is worried about their future. According to District One Supervisor Anthony Hales, “We are facing a financial crisis looming up before us. If we don’t find additional revenue, we will have to…start shutting down some offices, and cutting back drastically on the sheriff’s department.”

So Hales proposed a one percent countywide sales tax in lieu of raising property taxes and making deep cuts in services and protection. “…Hales said a portion of what the tax would raise would be dedicated by law to being applied to reducing the tax burden already on homeowners.” This part of the measure would be binding so that residents could expect that property taxes would be reduced after the sales tax increase.

“The proposed measure would have to be approved by state legislators, and then voted on in a binding resolution by county electors.”

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