Retail Bad Debt White Paper
Last week, AFSA’s SGA team published it’s July white paper looking at retail bad debt.
Under retail bad statutes, the financial institution is entitled to a tax credit or deduction for the amount of the sales tax remitted but unpaid by the consumer on accounts considered uncollectable. Allowing financial institutions to claim refunds for sales tax paid in advance for financed retail transactions that are not repaid in full, is critical in preventing an additional, unfair and unwarranted tax burden on businesses. Preventing this burden benefits consumers and businesses alike by decreasing the risk of providing credit and lowering the cost of credit for borrowers.
AFSA’s white paper looks at state retail bad debt laws, as well as recent legislation that would affect tax obligations. This paper, along with SGA’s other white papers, can be found in the SGA resources section of AFSA’s website.
July 3rd, 2023
Get The News You Need
Sign up for our daily newsletter to receive all the most important industry news and updates every weekday morning.
Recent Posts
- On Brian Johnson’s Nomination to Lead the CFPB
- June White Paper | Consumer Complaints
- NY Fed on Rate Caps
- Industry Expertise | The Exposure Gap Your Bank Partnership Agreement Just Created
- AFSA Webinar | Why AI Implementations Fail, and How Asset Finance Lenders Can Get It Right