Sales and use tax, change in state tax rate

# (A)

In the case of a state sales and use tax rate change where the effective date of the rate change is less than thirty days after the legislation adopting the rate change is enacted, a vendor or seller who has erroneously collected tax at the preceding rate will not be held liable for the failure to collect the tax at the new rate if:

# (1)

The vendor or seller collected the tax at the immediately preceding rate, and

# (2)

The vendor or seller's failure to collect the tax at the new rate does not extend beyond thirty days after the enactment of the new rate.

# (B)

The relief in paragraph (A) of this rule will not apply to a vendor or seller that fraudulently fails to collect tax at the new rate or solicits purchasers based on the immediately preceding rate.

Last updated October 7, 2024 at 1:29 PM