Mining the Fine Print of the Tax Code

The fact is, most states’ sales tax code is badly written and unevenly applied. A legislative body decides it needs revenue and drafts a bill to that effect. The influential lawmakers with pet industries bury exemptions into the language. That result is confusing to even the state employees charged with applying the law. In many cases, we’ve earned our keep with just a well-made argument to a revenue department.
A company’s growth can be another opportunity. In one case, a state had an exemption for computer printers. Not a big deal when the company was purchasing a little black and white printer that sat in a corner. When that printer became a six figure document processing center, it was a big deal.
Technology changes. Software that used to come on a CD was taxable. Now it’s downloaded from the internet, and by making some simple changes to the purchase agreement, becomes exempt.
Those are some simple examples of the everyday transactions we see.
The opportunity to recover sales and use taxes that your company has already paid passes as every statute of limitations expires. Letting the next statute run out could translate into thousands of dollars you will never be able to get back.