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How Environmental Fees Complicate Sales Tax Compliance for Businesses and Increase Audit Risks

  • States are increasingly adding environmental fees (e.g., bag charges, e-waste surcharges, recycling assessments) that complicate sales tax compliance.
  • The taxability of these fees varies by state and fee type; some are taxable, some are exempt if separately stated.
  • Common fees include bag and carryout fees, mattress recycling fees, e-waste recycling fees, and beverage container deposit programs.
  • Businesses often struggle with compliance due to differing state rules and frequent changes, making these fees a common audit issue.

Source: salestaxsolutions.us

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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