SOURCE: Sabrix, Inc.

December 09, 2009 09:00 ET

Sabrix Reports 2009 Quirky Tax Laws Underscoring Need for Technology and Expertise to Manage Complex Sales and Use Tax Process

"Gifted" Flu Vaccines and Wisconsin Marshmallows Without Flour Are Now Taxable

SAN RAMON, CA--(Marketwire - December 9, 2009) - Sabrix, Inc., a leading provider of transaction tax management for companies of all sizes, today revealed a sampling of 2009 quirky sales and use tax changes, emphasizing the importance of technology and expertise to help navigate the dynamic sales and use tax landscape.

"While some of the changes may seem strange, humorous, and downright confusing, it highlights just how difficult managing the sales and use tax process can be," said Pam Kostka, Senior Vice President of Corporate Marketing of Sabrix. "In light of the economy, where government is creating an array of new taxes to address budget shortfalls, businesses are finding it especially difficult and costly to achieve compliance with confidence."

Sabrix MTS™ combines an on-demand version of the Sabrix Application Suite, the same trusted tax platform used by leading global companies, with service from a multidisciplinary team of tax experts and SAS 70 certified processes. Sabrix customers who have deployed either solution benefit from the millions of dollars invested in technology, security, tax content and industry proven best practices and are able to seamlessly comply with tax changes immediately.

A few of the 2009 "quirky" sales and use tax highlights include:

--  Marshmallows and yogurt covered raisins in Wisconsin:  Wisconsin
    recently enacted legislation that states that marshmallows are taxable
    unless they contain flour. Additionally, the new legislation "clarifies"
    that while yogurt and raisins are both exempt, yogurt covered raisins are
    taxable. Wis. Admin. Code Tax 11.51.
--  Flu vaccines in Illinois:  Illinois addressed the taxability of free
    flu administered to individuals without insurance. Although the individuals
    are not required to pay tax on their free flu shots, Illinois noted that
    the donor of the "gift" is deemed the end user of the property and is
    subject to the use tax on that property. Illinois Dept. of Rev. General
    Information Letter ST 09-0118-GIL.
--  The Illinois candy tax:  Illinois changed their tax laws in regards to
    taxing candy. Chocolate bars, yogurt- or chocolate-covered nuts or fruit,
    honey-coated nuts, caramel popcorn, lollipops, snack mixes containing
    yogurt or chocolate, breath mints, and gum are considered candy and taxed
    at the standard sales tax rate. However, chocolate-covered cookies, yogurt-
    covered pretzels, "candy" that contains flour, plain dried fruits and nuts
    with no added sweeteners are not candy and, therefore, are taxed at the
    lower food rate.  Illinois Dept of Rev. Publications- FY - 2010-01. See:
--  The yoga tax in Missouri: Missouri became the only state to enforce a
    four percent sales tax on what many see as a spiritual pursuit: the
    practice of yoga.  Ruling No. LR 2732.
--  Driving service taxable in New York unless in connection with a
    funeral:  New York changed their laws to tax transportation by livery
    services, such as limousine or black car. However, New York compassionately
    provided an exemption for such services if provided in connection with a
    funeral. N.Y. Tax Law §1101(b)(34); NY TSB-M-09(2)S.
--  Streaming digital goods in Washington:  Washington became the first
    state to specifically tax the streaming of digital products (i.e. music,
    movies) when they recently enacted legislation under HB 2075. See ESHB

About Sabrix, Inc.

Sabrix, Inc. is a leading provider of transaction tax management for companies of all sizes, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, Value Added Tax (VAT), excise tax and industry-specific taxes and fees. The Sabrix Application Suite™ serves global enterprises such as, BASF, Cisco, DTE Energy, IBM and York International. The Sabrix Application Suite seamlessly connects to all financial applications requiring the determination, calculation, and recording of transaction taxes. The company also offers the Sabrix Managed Tax Service™ (MTS), an outsourced transaction tax compliance service that helps finance departments of small-and-medium-sized businesses eliminate the hassle, control their audit exposure, and reduce the total cost of sales tax, use tax, and VAT compliance. Sabrix MTS seamlessly integrates with a company's existing accounting and e-commerce systems, and, similar to outsourced payroll services, operates as a trusted extension of a company's finance department to address tax compliance from start to finish: address validation, tax rate maintenance, tax determination and calculation, returns preparation and filing as well as audit research and documentation. For more information, please visit

Sabrix, Sabrix Application Suite, Sabrix Managed Tax Service and Sabrix MTS are trademarks of Sabrix, Inc. All other company and product names are trademarks or registered trademarks of their respective holders.

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