June 2024 Content Changes

Created:

May 28, 2024

Updated:

May 28, 2024

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Summary of Content Changes

The state sales and use tax on commercial real property rentals is decreasing from 4.5% to 2.0%, effective June 1, 2024.

The Idaho Telecommunications Relay Service Fee on local service providers has increased from $0.05 to $0.07 per month per line.
The Idaho Telecommunications Service Assistance Program surcharge was reinstated at a rate of $0.05 per access line on May 16, 2024. This reinstatement is explicitly stated to be retroactive and is effective May 1, 2024.

On May 8, 2024, the Kentucky Lifeline Surcharge was increased by order from $0.15 per access line per month, to $0.18 per access line per month.

The Michigan PUC Assessment on telecommunications previously was coded with the Tax Type Class code 139, for interexchange carrier. It has been recoded to have the Tax Type Class code 123, for telecommunications. At the same time, we updated the percent taxable for this tax to 50% to account for the reduced assessment base for telecom providers and we recoded the passthrough requirement from passthrough required to passthrough optional.

The Missouri Telephone Relay Surcharge was decreased by order of the Public Service Commission from $0.10 to $0.06, effective June 1, 2024.

The local license tax records in the county of Humboldt and the city of Lovelock have been recoded from Tax Type Class code 136 (Local Exchange) to Tax Type Class code 137 (Wireline/Landline/VOIP).

We have updated our content for the South Carolina Universal Service Fund to now apply to interstate telecommunications PS Codes. According to the Universal Service Fund Contribution Worksheet Instructions for South Carolina, the SC USF is assessable on both intrastate and interstate telecommunications services (but not international). It is highly unusual for a state USF to apply to interstate telecommunications and arguably preempted by federal law. However, due to the guidance from SC, we are making the most conservative decision in our content so as to avoid triggering audit assessments for our clients which may potentially require litigation to overcome. If you wish to take a less conservative position with regards to your SC USF, we recommend that you consult with a qualified tax professional and then we can assist with configuring the appropriate rules in your environment. Please reach out to support@ceretax.com if you have any questions.

We have reconfigured the state-level sales and use tax structure in Tennessee. Going forward, the standard rate of 7% will apply uniformly to all transactions; the additional 2.75% single article rate will be applied separately, and only to single items of tangible personal property with a sales price greater than $1,600 but less than $3,200. This isolation of the state single article rate aligns better with tax reporting requirements.

The city of Mooresville, Alabama will begin collecting local sales and use taxes effective 6/1/2024. Mooresville will impose a 2% general rate on most tangible personal property, a 0% rate on food for home consumption, a 1% rate on manufacturing machinery, and a 1% rate on automobiles.