Who must pay
Dealers whose taxable sales totaled $4 million or more for the 12-month period ending June 30, 2017 were required to make an accelerated retail sales and use tax payment in June 2018. The requirement is based on aggregate sales and purchases for all business locations, regardless of whether you file separate, combined, or consolidated returns. If your business met the threshold, you were required to pay 90% of the sales tax you owed for the month of June 2017, minus the applicable dealer’s discount and prepaid wireless fee for that month.
In April, we mailed notifications to each dealer that met the requirements. In mid-May, we sent a second letter to dealers at all of their business locations with the specific amount due.
How to file and pay
After making your accelerated payment, file your regular June return by July 20, 2018, and pay any difference between the actual June 2018 liability and the accelerated payment. If there is any remaining overpayment after the July payment, we will refund the amount.
Accelerated sales tax payment deadline:
- June 30* for electronic payments
- Checks must be postmarked on or before June 25, 2018
*Since June 30 is a Saturday, payments made on July 2, 2018 were considered on time.
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 2018 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%).
See Guidelines for the Accelerated Sales Tax Payment for more details.