According to a recent article on NBC Connecticut, this is exactly what’s happening to local car washes offering automatic vacuums and vending machines that dispense cloths and other items – all of which are now subject to the state’s 6.35% sales tax.
Car wash owners – and soon other business like these – may need to include the sales tax amount into the overall service charge in order to cover the cost. It’s more important than ever for these businesses to ensure they’re calculating and remitting sales tax accurately.
“The majority of states do not tax car washes,” said Eric Wulf, chief executive officer of the Chicago-based International Car Wash Association. He added that he would be surprised if he could count on one hand the number of states that charges sales tax on coin-operated car washes.
Vertex Cloud is the perfect solution for mid-market ERPs and ecommerce platforms – right-sized for small and medium-sized businesses. It offers a cloud-based sales and use tax automation solution designed to save time, effort, and risk associated with calculation, return, remittance, and compliance.