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
