Sales Tax Rate and Rule Updates: August 1, 2024

The National Cleaners Association (NCA) strives to keep our members informed about important updates that impact their businesses. Each month, states make changes to sales tax rates and rules, and this month is no exception. Below is a summary of the rate and rule changes effective August 1, 2024, which may affect your business transactions. Being aware of these changes will help you avoid any surprises and ensure smooth operations.

For those using accounting software like QuickBooks, these updates will be automatically reflected in the software, streamlining your sales tax management process. Additionally, you can use the free sales tax calculator within your accounting software to find rates for any US address.

Sales Tax Liability Report

Curious about your Sales Tax Liability report? Explore this newly published help article written by sales tax experts, available in your accounting software’s support section.

Invoice Update

Review your invoices for the latest layout updates. You will now see:

• A new location of sale box
• A before and after tax discount toggle
• The ability to add rates directly on the invoice face

Rate Updates

Effective August 1, 2024:

• Alabama (Skyline use tax)

Tax Administration Updates

Alabama

• Gadsden: The administration of sales, use, and rental tax for the city of Gadsden will transfer from Avenu to the Alabama Department of Revenue, effective August 1, 2024. This change will impact reporting on or after September 1, 2024.
• Pinckard: Similarly, the administration of sales, use, and rental tax for the town of Pinckard will move from Avenu to the Alabama Department of Revenue, effective August 1, 2024, with reporting changes taking effect from September 1, 2024.

Content Updates

Oklahoma

• House Bill 1955: Effective August 29, 2024, Oklahoma exempts retail sales of food for human consumption off the premises where sold. All relevant tax categories will be marked as exempt starting from this date. More information on this change can be found here.

Sales Tax Holidays

Maximize your benefits during this year's sales tax holidays. We’ve added numerous new tax categories in the Sales Tax feature of QuickBooks Online. Learn how to map your products and services to these new categories with this quick tutorial.

• Arkansas: August 3-4. During this period, certain electronic devices, school supplies, art supplies, instructional materials, and clothing are exempt from state and local sales and use tax.
• Connecticut: August 18-24. Clothing and footwear costing less than $100 per item will be exempt from sales tax.
• Florida: July 29 - August 11. Exemptions include clothing, footwear, certain accessories (up to $100), school supplies (up to $50), learning aids and jigsaw puzzles (up to $30), and personal computers and related accessories (up to $1500) for noncommercial home use.
• Iowa: August 2-3. Clothing or footwear sold for less than $100 per item will be exempt from sales tax.
• Maryland: August 11-17. Sales tax does not apply to clothing or footwear priced $100 or less, and the first $40 of a backpack/bookbag.
• Massachusetts: August 10-11. Retail items up to $2,500 purchased for personal use will be exempt from sales tax.
• Missouri: August 2-4. Exempt items include clothing and footwear, personal computers and peripherals, software, and general school supplies.
• New Mexico: August 2-4. Qualifying tangible personal property will be sold tax-free.
• Ohio: July 30 - August 8. Most items $500 or less are exempt. Previously, the holiday included only clothing and school supplies.
• Oklahoma: August 2-4. Clothing and footwear sold for less than $100 per item are exempt from state and local sales taxes.
• South Carolina: August 2-4. Exempt items include clothing, accessories, footwear, school supplies, computers, and bed and bath linens.
• Texas: August 9-11. Most clothing, footwear, and school supplies priced less than $100 are included.
• Virginia: August 2-4. Exempt items include school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star and WaterSense products.
• West Virginia: August 2-5. Exempt items include clothing, footwear, instructional materials, school supplies, sports equipment, laptops, and tablets.

Sales Tax News

Kentucky

• Collectible Bullions, Coins, or Currency: Kentucky's HB 8 provided an exemption for these items, starting August 1. However, due to a line item veto by the Governor, the Kentucky Department of Revenue's position is that these items remain taxable.
• Credit Card Fees: According to the June 2024 Newsletter, if a retailer passes the cost of credit card fees onto the customer, the itemized charge for the fee is taxable.

New Jersey

• Sales Tax Holiday: Repealed by P.L. 2024, c. 19. Sellers should charge sales tax on all taxable items. More information can be found on the New Jersey Division of Taxation website.

These changes have been released by the states as of the date of this email, and there may be other small changes enacted late or retroactively by the states.

By staying informed through your accounting software and resources like QuickBooks, you can efficiently manage these updates and ensure compliance. For any questions or further details, please reach out to your software support or consult the relevant state tax authority.