CCH White Paper Examines States’ Likely Sales Tax Moves
Monday, December 14, 2009
Posted by: Boomer Consulting, Inc.
Businesses should expect state governments to be looking for ways to increase their sales and use tax revenue to ease financial shortfalls, according to the white paper The Impact of the Loss of State Sales and Use Tax Revenue on Business and Consumers from CCH, a Wolters Kluwer business and a leading provider of tax, accounting and audit information, software and services (CCHGroup.com). To access the white paper, click here.
In the white paper, CCH CorpSystem® Product Manager, Sales and Use Tax, Phil Schlesinger notes a number of states are facing more than a hiccup in revenues.
"For many states, the picture is very grim and could take years to rebound from the current economic downturn. Whether popular or not, states will have cut costs and generate additional revenue,” Schlesinger says.
Schlesinger examines nine steps that states could take to increase sales tax revenues. The three "obvious choices” are to raise rates, expand the taxable base – by taxing services, for example – and increase collections.
"Of these three likely candidates, increasing audit and tax collection efforts, or in other words, enforcing existing laws, would be the only one that wouldn’t carry any potential negative risk,” Schlesinger notes.
Schlesinger identifies eight states that have already increased their sales tax rates or are likely to do so this year, and localities in 15 states that have followed suit or are likely to this coming year; five states that will have expanded their tax base by early next year; 10 states that have introduced or are seriously considering measures to expand nexus; five states that are taking a serious look at joining the Streamlined Sales Tax.
"Whatever approach the states decide to take to generate the additional needed revenue, you can bet that sales and use tax will be at the forefront of the discussions and resolutions,” Schlesinger said.
About the Author
Phil Schlesinger has been in the sales and use tax field for 22 years and has been involved in all areas of sales and use tax, including compliance, audit, tax research and automation, both in a corporate environment and in a consulting role. While in consulting, he prepared taxability matrixes for dozens of companies representing numerous types of industries such as software, manufacturing, services, food, medical, advertising and construction. Over his career, Schlesinger has also been heavily involved in the design, testing and operation of several sales and use tax software tax calculation engines and tax return processing systems including those of CCH, Vertex, Taxware and AvaTax.
For More Information
For more information on CCH CorpSystem sales and use tax solutions, call 1-866-513-2677 or visit salestax.com.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading products are The ProSystem fx® Suite, CCH® TeamMate, CorpSystem®, CCH® IntelliConnect™, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors. Wolters Kluwer had 2008 annual revenues of €3.4 billion, employs approximately 20,000 people worldwide, and maintains operations in over 35 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Visit www.wolterskluwer.com for information about our market positions, customers, brands, and organization.