Managing sales tax is a thankless task for any business. You won’t get props for collecting the correct sales tax from a customer, or for filing returns and remitting tax properly and on time, but you’ll sure catch hell and be penalized for getting it wrong.
While sales tax requirements are never considered easy, they’re particularly difficult in the following 10 states: Arizona, California, Colorado, Florida, Illinois, Louisiana, Missouri, New York, Tennessee, and Texas. Another two deserve honorable mention: Alabama and Kansas.
The complexity of sales tax collection, remittance, and returns in the above states creates a perfect storm that makes sales and use tax filing in these jurisdictions uncommonly painful. Contributing factors include:
- Home rule
- Non-traditional sales tax
- Sales tax holidays