Actually, this isn't as much a list of bad department of revenue websites as it is a rant about the Alabama Department of Revenue. Oftentimes, I have to do research about state tax laws for surrounding states and Alabama is one of the worst.
The website makes it difficult to find information and many of the rules make it costly to comply. For instance, Alabama is a state that still has local (city/county) governments collect and assess their own sales tax. Unlike many states that have a uniform tax form for all counties and cities, Alabama has jurisdictions that have a separate form.
Separate local government forms make it costly for small business subject to sales tax collection to comply. The business must first be aware that the additional form is required. Then, it must know how to report the calculations. Finally, it must know when and where to submit both the form and the sales tax collected.
Obviously, the additional filing requirements are more expensive to meet than a state with a consolidated form whether the business performs this function with staff in house or outsources to a CPA. Soon I hope to calculate a 'break-even' point for conducting business in a new state. This will include the cost to register and become 'legal' in that state as well as the costs to comply with continuing reporting requirements. I theorize that for small businesses many states' requirements are so burdensome as to even be cost effective to enter the state. I would now like to quantify that.
The website makes it difficult to find information and many of the rules make it costly to comply. For instance, Alabama is a state that still has local (city/county) governments collect and assess their own sales tax. Unlike many states that have a uniform tax form for all counties and cities, Alabama has jurisdictions that have a separate form.
Separate local government forms make it costly for small business subject to sales tax collection to comply. The business must first be aware that the additional form is required. Then, it must know how to report the calculations. Finally, it must know when and where to submit both the form and the sales tax collected.
Obviously, the additional filing requirements are more expensive to meet than a state with a consolidated form whether the business performs this function with staff in house or outsources to a CPA. Soon I hope to calculate a 'break-even' point for conducting business in a new state. This will include the cost to register and become 'legal' in that state as well as the costs to comply with continuing reporting requirements. I theorize that for small businesses many states' requirements are so burdensome as to even be cost effective to enter the state. I would now like to quantify that.
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