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How MSPs Can Navigate State Tax Changes in the New Year

Written by:

Wayne Landt

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The start of a new year is a great time for MSPs to review their state’s tax codes to see if any new changes were enacted. With each state having its unique tax structure, staying informed is key to avoiding potential pitfalls. In this blog post, we'll explore where MSP leaders can look for changes and updates, providing a comprehensive guide to navigate the complex landscape of state taxation.

No two states are exactly alike, so it is important to understand your state’s tax codes and regulations. Navigating a states regulatory and taxing authorities can seem daunting at first. The following are some good resources for those just starting the process.

1. National Association of Regulatory Utility Commissioners (NARUC): A Hub for State Resources

NARUC, a non-profit organization representing state public utility commissions, is an excellent starting point. Their website serves as a hub for resources and links to state commissions, providing MSPs with a centralized location to begin their research. Explore NARUC's website here to access a wealth of information and stay abreast of regulatory changes.

2. State Public Utility Commissions (PUCs): Identifying the Regulatory Authorities

Each state has a public utility commission or regulatory agency overseeing telecommunications services. MSP leaders can identify these authorities by visiting the official state websites. For example, in California, it's the California Public Utilities Commission (CPUC). Look for similar entities in your state and check for updates on their respective websites.

3. State Government Websites: Navigating Relevant Departments

State governments often have dedicated departments overseeing telecommunications or public utilities. MSPs should visit the official websites and look for departments such as the Department of Public Utilities or Department of Technology. These departments can provide valuable insights into any changes in state regulations affecting MSPs.

4. Department of Revenue or Taxation: Unveiling Communication Taxes

To get a comprehensive view of communication taxes, MSP leaders should explore the Department of Revenue or Taxation websites in each state. This department typically handles the collection of telecommunications-related taxes. For instance, in California, the California Department of Tax and Fee Administration (CDTFA) manages certain tax matters related to communications. Check your state's taxation website for specific details.

5. Federal Communications Commission (FCC): A Federal Starting Point

Initiate your tax compliance journey by referring to the Federal Communications Commission (FCC) website—your key resource for federal-level guidance on telecommunications services in the United States. Be mindful that the FCC oversees matters at the federal level, ensuring you stay informed about any nationwide changes that might impact your MSP operations, distinct from state regulations.

RingLogix Reporting Solution: A Powerful Resource for Tax Remittance

MSPs subscribing to the RingLogix taxing engine gain access to a robust reporting solution for tax remittance. This invaluable tool streamlines the process, making it easier for businesses to stay on top of their tax obligations. Consider utilizing the RingOS resources to ensure accurate and timely tax remittance.

As MSPs gear up for the challenges of the new year, staying informed about state tax changes is vital. Utilize the resources mentioned above to navigate the intricate landscape of state taxation, ensuring your business is well-prepared for the evolving regulatory environment in 2024.

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