Administering the Sales Tax

• 1On approximately what percentage of your total sales must you charge the state sales and use tax?Top 100 question
• 2Which best describes ADMINISTRATION of your state’s sales and use tax?
• 3Could your state’s sales and use tax be made easier to administer? A lot or a little?
• 4What is the ONE most important step the state could take that would simplify administration of the state sales and use tax for you? (Open)
• 5A(problems with sales tax) Different tax rates on different taxable goods or services.
• 5B(problems with sales tax) Some goods and services are taxable and some are not.
• 5C(problems with sales tax) Some people and organizations have to be charged the tax and some don’t.
• 5D(problems with sales tax) Reimbursement for overpaid taxes.
• 5E(problems with sales tax) Subject to different sales tax rules in different political jurisdictions.
• 5F(problems with sales tax) Maintenance of special records such as resale or exemption certificates.
• 5G(problems with sales tax) Tax deposits required before invoices are due or bills paid.
• 5H(problems with sales tax) Frequency of tax deposits.
• 5I(problems with sales tax) The need to collect and pay sales tax on “out-of-state” transactions.
• 6How do you normally distinguish between sales that require the tax to be charged and sales that don’t? Do you:?
• 7Are any of your sales also subject to a local sales and use tax?
• 7aHow many local jurisdictions have sales and use taxes that you must collect?
• 7bExcept for the actual tax rate, does the local sales and use tax have essentially identical, similar, dissimilar, or totally different rules and coverages than your state sales tax?
• 8Are you required to collect and file state sales tax in a state other than your own?
• 9Do you sell goods or services directly over the Internet?
• 10In the last five years, have you overpaid sales taxes and requested a refund or an adjustment to current taxes?
• 10aThe last time overpayment occurred, was the primary reason for it:?
• 10bWas it very difficult, somewhat difficult, not too difficult, or not at all difficult to obtain the requested refund or adjustment?
• 11In the last five years, has a state agency audited your sales tax records?
• 12Are you allowed to keep a certain percentage of the sales tax as compensation for collecting it?
• 12aIs the amount more than your costs, the same as your costs, somewhat less than your costs or a lot less than your costs?
• 13Are your sales BEST characterized as involving lots of transactions at relatively small amounts per transaction such as a diner, or fewer transactions involving large amounts per transaction such as in an auto dealership?
• 14Are your sales exempt from sales and use taxes PRIMARILY because they are:Top 100 question
• 15In the last five years, has a state agency audited your records to determine if you owed any sales and use tax?
• 16Though you don’t collect sales and use tax now, have you had to collect it at some other time within the last five years?

Volume 2, Issue 4, 2002
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation