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Investor Presentaiton

Municipal Tax Municipal sales tax applies when the customer purchases or receives the products or services within a city that imposes a tax. Municipal use tax applies to all products or services when the applicable sales tax is not collected within a city that imposes a tax. . The municipal use tax rate is based on the location where the product or service is used. • Additional municipal use tax may be due if a product or service is used in a different city that imposes a higher rate than was previously paid. Municipal Gross Receipts Tax The municipal gross receipts tax (MGRT) is in addition to the municipal sales tax. The MGRT can be imposed on alcoholic beverages, eating establishments, lodging accommodations, admissions to places of amusement, athletic, and cultural events. To ensure local governments receive the correct amount of tax money, retailers must report their sales accurately. Report the municipal taxes in the City and Special Jurisdiction Section on the sales tax return using the code designated for that city and tax. Each tax must be reported separately, using the designated code for that tax. Do not combine taxes or report all tax under one code. Sioux Falls Lodging Tax The City of Sioux Falls imposes a tax on lodging establishment's receipts. Report the Sioux Falls lodging tax in the City and Special Jurisdiction Section on the sales tax return using code 800-1. Tourism Tax Examples of Municipal Tax Exceptions: Transportation of passengers is subject to state tax-municipal tax applies if the trip begins, remains, and ends in the same city. Farm machinery and irrigation equipment for exclusive agricultural use are subject to state tax no municipal tax. Receipts from amusement devices are subject to state tax - no municipal tax. City tax rates vary across the state. You can find state, municipal, and special jurisdiction tax rates using the Sale Tax Rate Lookup. You may also view the Municipal Tax Guide that lists all municipal sales, use, and gross receipts taxes. The tourism tax on certain lodging and amusement services is for tourism promotion. Report the tourism tax in the City and Special Jurisdiction Section on the sales tax return using the code 700-1. For listings of specific products and services subject to tourism tax, review the Tourism Tax Fact. Changes are effective January 1 and July 1. Examples of items Tourism Tax applies to the gross receipts of: Hotels and Lodging Establishments • • • Campgrounds Motor Vehicle Rentals Recreational Equipment Rentals Recreational Services Spectator Events Visitor Attractions Visitor-Intensive Businesses Example: An Aberdeen motel has $10,000 in receipts from room rentals. Motel rooms rented in July 2018 in Aberdeen are subject to state sales tax, municipal sales tax, municipal gross receipts tax, and tourism tax. The municipal and tourism taxes are reported under the City and Special Jurisdiction Section of the tax return. Municipal Tax Charts City Aberdeen MUNICIPAL SALES TAX July 2019 Rate 2.00% SALES TAX CALCULATIONS 1. Gross Sales 2. Use Taxable 3. Non-Taxable Sales GROSS RECEIPTS TAX (IN ADDITION TO MUNICIPAL SALES TAX) General Code July 2019 MGRT Rate Tax Code Lodging 001-2 1.00% 001-1 X Easting Establishments X Alcohol Admissions X X GROSS TAXABLE RATE TAX DUE $10,000.00 4. Special Jurisdiction Sales (Detail in City Section) 5. Net State Sales Taxable (Line 1 plus Line 2, minus Line 3, minus Line 4) 6. City & Special Jurisdiction Tax Calculation Detail: 7. City/Special Jurisdiction Name 8. Aberdeen Municipal Tax 9. Aberdeen Municipal Gross Receipts Tax 10. Tourism Tax $10,000.00 x 4.5% $450.00 Code 001-2 001-1 Taxable Rate $10,000.00 2.00 $10,000.00 1.00 Tax Due $200.00 $100.00 700-1 $10,000.00 1.50 $150.00 8 • January 2022 • Sales and Use Tax Guide • South Dakota Department of Revenue
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