Hello Readers,
As Christmas, holidays and the new year approach, many of you (okay, maybe just the accountants) are thinking about taxes. The state legislature passed three new tax laws in 2009 that went into effect over the summer but I wanted to remind you of them once more before 2010 arrives.
The first one is a new tax law that has been discussed extensively in this blog and that is the taxation of digital products. This requires sellers of certain digital goods, digital automated services and remote access software to collect and remit sales tax from their Washington state customers for taxable sales of digital products.
http://dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/DigitalProducts.aspx This link takes you to the Dept. of Revenue web page on the taxation of digital products with related links to Q&A, forms you may need and Excise Tax Advisories. There will be legislation introduced in the 2010 legislative session to clarify some of the gray areas in this new law.
Somewhat related to the digital products tax is the new law on seller's permits. If you are a buyer of digital products, you may be exempt from paying sales tax. In order to avoid paying sales tax that is not due, you will need a seller's permit. That form, which can be obtained from the Dept. of Revenue, is also attached with explanations about who and what is exempt.
If you are exempt but do not have a seller's permit, you will be liable for paying sales tax.
The last law that some of you may already be complying with is the mandatory "e-file" and "e-pay" programs of Dept. of Revenue. http://www.dor.wa.gov/Content/GetAFormOrPublication/PublicationBySubject/TaxTopics/MandatoryE-file.aspx This link takes you to the DOR page that explains more about mandatory e-filing and e-paying of taxes.
If you have any questions or concerns about any of these new tax laws, please contact WTIA at Lmcmurran@washingtontechnology.org or by phone at (206) 448-3033 x101. WTIA advocates and lobbies on your behalf in Olympia and with elected officials at every level. Let us know if there is something on your mind related to government.