Sales Tax Compensation

[Golden Rocket]

Some time ago, the state was appreciative of the paperwork having to be done with businesses, and Tennessee would give sales tax remitters a 2% discount off the total amount of sales tax paid.

As state tax situations became more and more desperate, Tennessee gradually phased out this discount, and there has been no discount whatsoever for over 10 years. TN Sales Tax Division called this the "vendors' compensation".

If you read this, and your state still has some form of reward for those businesses who remit Sales Tax, please post.

[ChEAr$]

Yes, Alabama

still gives a discount of 5% on first 100%, 2 % thereafter.

One client's total discounts, state and local sales tax, almost pays my monthly fee.

[Jiggers]

Texas gives a 0.5% (.005) discount for filers who file on time, by the 20th of the month.

Used to be by the last day of the month.

And starting Jan 1st this year, any one wanting an exemption from sales tax for agricultural use has to get a permit. They used to just sign a statement saying it was ag use.

[Burke]

VA allows a 1.6% discount, generally for individuals whose monthly sales are below a certain amt. For dealers who must remit via EFT, discount is no longer allowed.

[bgiez]

MI has an early payment discount that is at least $6 per month, $18 per quarter, or $72 per year (some businesses are required to remit sales tax monthly, some quarterly, and some only annually). If sales taxes are remitted by the 12th, the discount is .5%, if the sales taxes are remitted by the 20th, the discount is .333%, keeping the minimum discounts referenced above in mind.

[oceanlovin'ea]

Florida

Florida gives a 2.5% discount if sales tax is remitted by the 20th of the month. You can choose to give your discount to education and pay the whole amount if you like.

Linda, EA

[ToledoEd]

Ohio allows 0.5% if filed by the due date, the 23rd.