Front Line Systems

Sage 300 Support, Sage 300, HighJump Warehouse Edge Consultants

  • Home
  • ERP
    • Sage 300 ERP
    • Sage 300 (Accpac) Cloud ERP
    • Sage 300 Demo
    • Sage 300 Support
    • How Much Does Sage 300 Cost?
    • ERP Resources
      • Change Your Sage 300 Partner
      • Increase Your ROI on Sage 300
      • Get Your Sage 300 Year-End Guide
      • Ultimate Sage 300 Guide For Sage 300 Users
  • WMS
    • HighJump Warehouse Edge
    • Warehouse Efficiency Resources
      • 10 Ways a Warehouse Management System Will Increase Efficiency
      • How Does Warehouse Automation Improve Inventory Management?
      • How to Improve Warehouse Performance?
      • How to Increase Picking Speed In Your Warehouse?
      • Tribal Knowledge and Your Warehouse Efficiency
    • HighJump Data Sheets
  • Add-Ons
    • AP Automation
    • Business Intelligence Software
      • Anvizent Analytics
      • Sage Enterprise Intelligence
      • Solver BI 360
    • Credit Card Processing
    • Manufacturing Software
      • AutoSimply Manufacturing Software
      • MiSys Manufacturing Software
    • Other Add-Ons
      • Sage CRM Software
        • Sage CRM Demo
        • CRM Software Consulting
        • CRM Software: Discover How To Use Outbound Call Lists in Sage CRM
      • Document Management Software
      • EDI Software for Sage 300 ERP (Accpac)
      • Hotel Management Accounting Software
        • Hotel Accounting Software
      • Sage HRMS
      • PrintBoss Software
        • Video: PrintBoss Software for Sage 300
      • Projects for Sage 300
      • Avalara Sales Tax
      • Service and Maintenance for Sage 300 ERP
      • Web Stores for Sage 300 ERP
  • Contact Us
    • Contact Us
    • Sage 300 ERP Consultants (formerly Sage Accpac) | HighJump WMS Consultants
    • Meet the Front Line Systems Team
    • HighJump Warehouse Edge Client Testimonials
    • What Our Sage 300 Customers Are Saying
  • Visit Our Blog

January 11, 2016 by Front Line Systems Leave a Comment

2016 Sales Tax Changes: What to Expect in the New Year

Avalara_logoLike every New Year, 2016 will bring many sales tax changes. Rates will decrease or increase, there’ll be new product taxability rules, exemptions will expire or take effect, and there will be reporting changes. The only thing certain when it comes to sales tax is that change happens. And if often happens without much warning.

The coming of a New Year is a time to reflect on the past — what went well and what you wish you’d done differently. It’s a time for resolutions. This new year, have no regrets when it comes to sales tax.  Resolve to streamline your sales tax compliance. You’ll find that it’s easier than losing weight.

Resolution: Streamline sales tax compliance.

Rates. Nearly a dozen states, including Illinois and Maine and Minnesota, have announced local sales tax rate changes for 2016. More will come as January 1 approaches. In addition, there is talk of increasing the state sales tax rate in both Oklahoma and Florida.  State departments of revenue often — but don’t always — announce rate changes in time for businesses to account for them. However, in tricky home rule states like Colorado and Louisiana, local governments may not notify state revenue departments of such changes in a timely manner, or at all.

Resolution: Be sure you have a reliable system in place to manage sales tax rate changes.

Product taxability. Businesses also need to account for changes in product taxability. Sales tax can be expanded to services or slapped onto previously exempt tangible personal property. States generally announce changes in time for sellers to account for them; yet unfortunately, that’s not always the case. For example, on June 30, 2015, Governor Jay Inslee of Washington signed legislation reforming the regulation and taxation of the marijuana market. It took effect the following day.

Product taxability coming in 2016 include the following:

  • Martial arts classes and many other physical fitness services will become subject to sales tax in Washington State
  • North Carolina will extend sales tax to installation, maintenance and repair services
  • Retail sales of prepaid wireless communications access will become subject to retail sales tax in Wyoming
  • The list of foods considered to be prepared food (and taxable) will be expanded in Homer, Alaska

Resolution: Successfully process changes in product taxability and do it quickly.

Exemptions. Changing sales tax exemptions are also a bear, whether at the state or local level. While many, like the exemption for gun safety devices recently approved by the Michigan Senate, make headlines, many others slip into law virtually unnoticed.

Some exemption changes under consideration or set to take effect in 2016 include the following:

  • California’s partial tax exemptions will decrease
  • Florida’s exemption for college textbooks is set to expire but its manufacturing exemption may be extended
  • Iowa’s machinery and equipment sales tax exemption may be expanded
  • North Carolina will provide a sales tax exemption for electricity used in qualifying datacenters
  • Senior sales tax exemptions will be scaled back in Juneau, Alaska

Resolution: Have a fail-safe solution to managing sales tax exemptions and exemption and reseller certificates.

Reporting. Last to be considered here (but certainly not the last issue sellers will confront) are changes to the way sales tax is reported. Some of the changes planned for 2016 include:

  • New reporting requirements for exempt entities in Alabama (this is a big deal)
  • New reporting requirements for sales of consumable vapor products in Alabama
  • Colorado will stop mailing sales and use tax forms to businesses

Resolution: Get reporting and filing right.

Be ready

Sales tax changes are coming in 2016. There will be new rates, product taxability rules, exemptions and filing requirements, and the onus is on you — the seller — to comply with those changes. Failure to do so can lead to negative audit findings, penalties, interest, and a whole lot of hassle. So what’s your plan?

Resolution: Make sales tax less taxing with Avalara AvaTax.

For more details, including a state by state analysis of what’s changing in the coming year, download Avalara’s 2016 Sales Tax Changes guide.

READ NOW

Filed Under: sales tax automation, sales tax software

Leave a Reply

Your email address will not be published. Required fields are marked *

Quick Contact

Fill out my online form.

Sign Up For Our Sage 300 Tips & Tricks Newsletter

Register Below

* indicates required

Industry Solutions

Manufacturing
Service
Hotel Management
EDI
Document Management Software
Web Stores
The Cloud

Search For:

Read Our Latest Blog Posts

  • Sage 300 version 2022 product update 2 – What’s new?
  • What’s New in Sage 300 version 2022 – Product Update 1

Why Front Line Systems?

We believe that your business has an amazing capacity for innovation and growth and that technology can help get you there. Front Line Systems is a technology partner that believes in solving problems and creating solutions for the life of your business.   Learn More

Quick Links

Sage 300 Success Stories
Sage CRM Software
Hotel Software
Manufacturing Software
Meet the Front Line Systems Team
Warehouse Management Software (WMS)
Privacy Policy
Blog
Sitemap

Partnerships

Korber Partner

Sage Business Partner

Contact Us

Front Line Systems, Inc. is a Sage 300 and HighJump Warehouse Edge (a Körber product) partner. We are headquartered in Minneapolis, MN and have offices in Virginia and Washington DC. We serve clients across the United States. If you need Sage 300 support or would like a new warehouse management system don't hesitate to contact our team today.

Front Line Systems, Inc.
Phone: (866) 435-0243

Copyright © 2025 Front Line Systems, Inc.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok