|
|
Newsletters
The Monthly Blend
May 2006
Governor Riley Signs Alabama Sales Tax Holiday Legislation 
Submitted by: Matt Capone, CPA
Alabama Governor Bob Riley has signed legislation creating a statewide sales tax holiday for back-to-school shoppers. The sales tax holiday permits shoppers to make purchases of certain covered items without paying state sales or use tax. Governor Riley has not yet signed House Bill 321, which must become law before the sales tax holiday legislation can take effect. (News Release, Office of Governor Bob Riley, 04/25/2006 ; L. 2006, H228, eff. 07/01/2006.)
Annual sales tax holiday. The legislation provides that the sales tax holiday will occur on the first Friday, Saturday, and Sunday in August each year. The following covered items will be exempt from state sales and use taxes:
- articles of clothing with a sales price of $100 or less, per article of clothing;
- a single purchase, with a sales price of $750 or less, of computers, computer software, and school computer supplies;
- noncommercial purchases of school supplies, school art supplies, and school instructional material, with a sales price of $50 or less; and
- noncommercial purchases of books with a sales price of $30 or less per book.
Items normally sold in pairs cannot be separated to qualify for the exemption. Any county or municipality that adopts a resolution or ordinance at least 30 days before the first full weekend in August can elect to join in the sales tax holiday, and exempt covered items from county or municipal sales and use taxes. Counties and municipalities cannot provide for a sales tax holiday during any other period of the year.
Clothing. "Clothing" means all human wearing apparel suitable for general use, including sandals, shoes, and sneakers. Clothing does not include these items:
- belt buckles sold separately;
- costume masks sold separately;
- patches and emblems sold separately;
- sewing equipment and supplies; and
- sewing materials that become part of clothing, such as buttons, fabric, lace, thread, yarn, and zippers.
In addition, clothing accessories or equipment, protective equipment, and sport or recreational equipment do not qualify for the exemption as clothing.
Computers, software, and supplies. For purposes of the sales tax holiday, a "computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. A "school computer supply" means a item commonly used by a student in a course of study in which a computer is used. School computer supplies include only the following items:
- computer storage media, diskettes, compact disks;
- handheld electronic schedulers, except devices that are cellular phones;
- personal digital assistants, except devices that are cellular phones;
- computer printers; and
- printer supplies for computers, printer paper, and printer ink.
The exemption does not apply to furniture and any systems, devices, software, and peripherals designed or intended primarily for recreational use, or video games of a noneducational nature.
School supplies and materials. For purposes of the sales tax holiday, "school supply" is an item commonly used by a student in a course of study. The legislation provides an all-inclusive list of 27 "school supplies," including items such as binders, book bags, calculators, lunch boxes, notebooks, pens and pencils, and scissors. "School art supply" means an item commonly used by a student in a course of study for artwork. The all-inclusive list of school art supplies includes clay and glazes, paints (acrylic, tempora, and oil), paintbrushes for artwork, sketch and drawing pads, and watercolors. "School instructional material" is written material commonly used by a student in a course of study as a reference and to learn the subject being taught. The following is an all-inclusive list:
1. reference maps and globes; and
2. required textbooks on an official school book list with a sales price of more than $30 and less than $50.
Books. A "book" means a set of printed sheets bound together and published in a volume with an ISBN number. It does not include magazines, newspapers, periodicals, or any other document printed or offered for sale in a non-bound form.
For more information on the above topic, please contact Matt Capone at Beason & Nalley, Inc. at 256-533-1720 or email at mcapone@beasonnalley.com.
Social Security Number Verification Service (SSNVS)
Submitted by: Jeanie Priest
Matching employee names and Social Security numbers to Social Security Administration records can now be verified by employers by using the Internet. The Social Security Number Verification Service is available through Social Security's Business Services Online (BSO) website at http://www.socialsecurity.gov/bso/bsowelcome.htm . This service is available to third-party submitters and all employers for wage reporting (W-2) purposes.
In addition to being able to verify names with Social Security numbers, employers can file employees' annual W-2s utilizing this service. The advantages are that it cuts down on administrative errors and allows Social Security to properly credit your employees' earnings records.
Registration is required to utilize SSNVS and includes selection of a personal identification number. An activation code is mailed to the employer who can then gain functionality of the service using the code.
For additional information, visit http://www.socialsecurity.gov/employer/ssnv.htm .
For more information on the above topic, please contact Jeanie Priest at Beason & Nalley, Inc. at 256-533-1720 or email at jpriest@beasonnalley.com . Coffee Talk
Scott Butler and Darryl Walker are scheduled to teach "Government Contract Accounting Systems Compliance" on May 17-18 in Washington, DC. The course is sponsored by Federal Publications.
Welcome to Charles Broome who has joined our Government Consulting Group as a Senior Managing Consultant.
Gail Wall presented "Going Paperless in Today's Accounting Environment" to The Huntsville Chapter of the American Society of Women Accountants.
Scott Butler presented "Can Your Accounting System Pass a Government Audit?" to NCMA members in Atlanta, Georgia. Related Information:
BACK to The Monthly Blend Also see:
Why Choose Us? | Industries | Contact Us
|
 |
___________
|
