Wednesday, April 23, 2008

TN Dept of Rev "Technical Corrections"=Tax Hikes

It's that time if year that the TN Department of Revenue tries to convince us that they are no longer simply in charge of implementing tax law, they are actually also in charge of making tax law.

Insty has the story.

Below are a few more nuggets from the email:

Digital Products/iPOD Tax. The Bill contains sweeping legislation that would subject downloaded sales of digital media, including music videos, motion pictures, news and entertainment programs, music, ringtones, electronic books, etc. to the retail sales tax. Under current law digitally delivered goods are not taxable unless delivered in a tangible form.

Sales Taxes Paid by Lodging Industry. Under this provision of the Bill, "hotels, motels, inns, and other dealers that offer lodging accommodations" would have to pay sales taxes on items they provide to guests that currently are folded into room rates (linens, bathroom supplies, breakfast bar items, manager's receptions' drinks, in-room coffee, etc.). Under the Bill, lodging providers with restaurants could avoid paying sales tax on food purchases by offering guests coupons to restaurants that sell and serve the same food to non-guests. This portion of the Bill would reverse a 2000 decision by the Tennessee Court of Appeals exempting hotels from paying sales tax on such items.