TaxJar Supports Automated Filings for Sellers Use Taxes
byOctober 13, 2021
If you’re a remote seller who sells into states that require you to report on multiple jurisdictions, you know how challenging it is to keep track of your sales tax obligations. Today, many states are taking steps to remedy some of the confusing intra / interstate differences in sales tax obligations.
Take for instance, Texas Single Local Use Tax Rate (SLTR). This program provides a single local tax rate that remote sellers can use instead of collecting and remitting the total local tax in effect at the destination address. Released in January each year, the general rate is 1.75 percent for non-Texas-based sellers or marketplaces, providing an easy to remember rate for remote sellers.
Another example is the Alabama Simplified Seller’s Use Tax (SSU). At a high level, the program allows eligible sellers to enroll in a program to collect, report and remit a flat eight percent (8%) sellers use tax on all sales regardless of the locality shipped to in Alabama.
States are making things easier, so are we
Other states have adopted ways to make sales tax compliance more accessible for remote sellers. Instead of wrestling with local jurisdictions that enforce their rates separately from the state, some provide a single rate to help cut through the confusion.
TaxJar supports these programs and has for some time. Here’s a list of states and their respective license types that we offer end-to-end support (calculations, reporting, and filing) for:
Simplified Seller’s Use Taxes:
- Alabama: Simplified Seller’s Use Tax (SSU)
- Texas: Single Local Use Tax Rate (SLTR)
- Louisiana: Direct Marketer Return (DMR)
Other Seller’s Use Taxes:
- Louisiana: Remote Seller Tax (RST)
- Oklahoma: Vendor’s Use Tax (SVU)
- Mississippi: Seller’s Use Tax (SUT)
Start with your settings
Depending on which state program you currently participate in or plan to participate in, we’ll support you with our comprehensive sales tax automation capabilities.
The process from here is pretty simple. In your TaxJar state settings screen, you can update your license type to reflect the program in which you’re a part of. And if you enroll in AutoFile, TaxJar will file your returns on your behalf.
*Please note that any change of license type should happen first with the state. Then update your state-registered license type in TaxJar. This update will take effect in TaxJar on the first of a filing period.
We hope this update makes things easier but please drop us a note (contact [email protected]) if you’d like to see this support for more states.
Set your business up for compliance in 2022
Learn 6 key steps to attain sales tax compliance now -- and in the future -- with this 2022 Sales Tax Preparedness Guide.Download the 2022 guide