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Last Updated: 4/7/2014

Business Services: 2013 Tax Law Changes

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Drop Shipment Sales

A person who sells taxable products through drop shipping may claim an exemption for resale, with an exemption certificate provided by the customer or reseller.

 

Motor Vehicles

Collector Vehicle Tax
The sales tax on purchases of collector cars or fire trucks is now $150.

Gift Transfer Tax
Gift transfers of motor vehicles are now taxable, except for those between spouses, parents and children, or grandparents and grandchildren.

Rental Rate Increase
The tax on car rentals is now 9.2%.

Repair Paint and Materials
Auto repair businesses can now use an industry standard formula to collect sales tax on these materials.

 

Payment made to a Cooperative Electric Association or Public Utility

Clarifies that payments that are “contribution in aid” for construction are not taxable.

 

Repair and Maintenance Services

Business purchases of these services are now taxable for electronic, precision, and commercial/industrial equipment.

 

Telecommunications

Pay Television Service
Any pay television service is taxable, no matter how it is delivered (cable, direct satellite, etc.); this includes video, audio, subscription programming, and digital video recording.

Telecommunications Equipment
All telecommunications and pay television equipment or machinery used by service providers is now taxable.