Sales Tax Slice: The Tax Base—a Perennial Challenge for Sales Tax Professionals

If you hang around state tax professionals long enough, you are bound to hear a discussion about the “tax base,” or the measure on which a state assesses or determines tax liabilities. Sales and use tax presents tax base questions fairly routinely. The issue: for any given transaction, what (if any) components should we remove before calculating how much tax the retailer should collect? That is to say, what should we remove before we multiply the tax base by the tax rate? As is typical in state tax—and indeed in most legal analysis—the answer is that “it depends.”

from statetaxrss http://ift.tt/1NdQHqJ