Who must pay
Dealers whose taxable sales totaled $2.5 million or more for the 12-month period ending June 30, 2016 were required to make an accelerated retail sales and use tax payment in June 2017.
In early May, we mailed letters to all business locations of dealers that meet the $2.5 million threshold. In early June, we mailed notifications to dealers with the specific amount of the tax owed and instructions for making the payment. If a business location had a tax liability of $25 or less, that location did not receive a notification.
How much tax will your business owe
The accelerated sales payment is based on aggregate sales and purchases for all business locations, regardless of whether you file separate, combined, or consolidated returns.
If your business meets the threshold, you are required to pay 90% of the sales tax you owed for the month of June 2016, minus the applicable dealer’s discount and prepaid wireless fee for that month.
How to file and pay
You are required to file and pay electronically unless you have already been granted an electronic filing waiver.
Payments are due:
- June 30, 2017 for electronic payments
- Checks must be postmarked on or before June 26, 2017
After making the accelerated payment, you should file your regular June return by July 20, 2017, and pay any difference between the actual June 2017 liability and the accelerated payment. If there is any remaining overpayment after the July payment, we will refund the amount.
See Guidelines for the Accelerated Sales Tax Payment for more details.
We will disable all accelerated sales tax payment options after June 30, 2017.
If you missed the deadline
If you did not make your payment on time, you will be subject to a 6% penalty on any late or unpaid accelerated sales tax payment. If you missed the deadline, you should file your June return as usual, and we will mail you a bill in August for any penalty owed. If you don’t pay the penalty bill on time, interest will begin to accrue.
For example, if you were required to make an accelerated payment of $10,000 in June 2017 but did not make the payment on time, you will receive a one-time penalty assessment for $600 ($10,000 x 6%). If you do not pay the $600 penalty by the date stated on the bill, interest will start to accrue.
If you paid less than the amount due, the 6% penalty will apply to the underpayment. For example, if the required accelerated payment amount was $10,000 and you only paid $8,000 by the due date, the penalty will apply to the underpayment of $2,000. You will be assessed $120 ($2,000 x 6%).