The post States’ Sales Tax Mailing Lists and Where to Subscribe appeared first on AccurateTax.
]]>Some states also offer SMS (text message) alerts, and in many cases, you can sign up for those using the same form.
A few states appear not to have mailing lists, but if you know of one that we missed, please let us know. Also, states change their websites on a regular basis, so if a link is broken, feel free to also drop us a note and we’ll fix it.
We are unable to find a mailing list relating to sales tax in Alabama. However, there is an archive at https://www.revenue.alabama.gov/sales-use/local-tax-notices/ that you may find useful.
Alaska is a NOMAD state and has no statewide sales tax.
https://azdor.us21.list-manage.com/subscribe?u=536c2584a12f0adcde024c675&id=ab18b9f0f3
We are unable to find a mailing list relating to sales tax in Arkansas.
https://www.cdtfa.ca.gov/subscribe/
https://tax.colorado.gov/email-sign-up
Colorado has separate lists for different tax types, including one for Sales & Use Taxes.
https://portal.ct.gov/DRS/Ealerts/E-News/Subscribe-to-e-alerts
Click “latest news”.
Delaware is a NOMAD state and has no sales tax.
https://service.govdelivery.com/accounts/DCWASH/subscriber/new?preferences=true
https://floridarevenue.com/Pages/subscribe.aspx
https://dor.georgia.gov/help/subscribe-revenue-emails
https://tax.hawaii.gov/news/mailinglist/
https://tax.idaho.gov/about-us/stay-informed/
Idaho has one mailing list for general tax news, one for tax pros.
We are unable to find a mailing list relating to sales tax in Illinois.
https://www.in.gov/dor/news-media-and-publications/indiana-tax-bulletin-e-newsletter/
https://public.govdelivery.com/accounts/IACIO/subscriber/new?qsp=IACIO_1
Kansas has a mailing list at the link below but doesn’t appear to have any topics relating to sales tax.
https://public.govdelivery.com/accounts/KSDA/subscriber/new?topic_id=KSDA_69
We are unable to find a mailing list relating to sales tax in Kentucky.
We are unable to find a mailing list relating to sales tax in Louisiana.
https://www.maine.gov/revenue/publications/maine-tax-alerts
We are unable to find a mailing list relating to sales tax in Maryland. There are some alerts at https://www.marylandtaxes.gov/individual/sales-use/tax-Info/index.php.
https://wfb.dor.state.ma.us/DORCommon/Listserv/DORMailList.aspx
https://public.govdelivery.com/accounts/MITREAS/subscriber/new?topic_id=MITREAS_18
We are unable to find a mailing list relating to sales tax in Minnesota.
We are unable to find a mailing list relating to sales tax in Mississippi, but there are some advisories at https://www.dor.ms.gov/business/tax-notices/sales-and-use-tax-notices.
https://mytax.mo.gov/rptp/portal/home/email-subscription/
Montana is a NOMAD state and has no sales tax. Their department of Revenue has a newsletter for other topics, however. You can visit their website and find the sign up form in the footer.
https://public.govdelivery.com/accounts/NEREV/subscriber/new
We are unable to find a mailing list relating to sales tax in Nevada.
New Hampshire is a NOMAD state and has no sales tax.
https://www.nj.gov/treasury/taxation/listservice.shtml
https://www.tax.newmexico.gov/nm-taxation–revenue-department-notification-service/
https://www.tax.ny.gov/help/subscribe.htm
On the right side of the screen, look for “Subscribe to tax tips, news, and updates”.
https://www.ncdor.gov/contact-us/e-alerts
https://www.tax.nd.gov/news/email-sign
https://tax.ohio.gov/help-center/email-us/tax-alert
We are unable to find a mailing list relating to sales tax in Oklahoma.
Oregon is a NOMAD state and has no sales tax.
https://www.revenue.pa.gov/News%20and%20Statistics/TaxUpdate/Pages/default.aspx
On the right side of screen look for “Sign up for updates”.
We are unable to find a mailing list relating to sales tax in Rhode Island, but there are newsletters at https://tax.ri.gov/guidance/newsletters.
We are unable to find a mailing list relating to sales tax in South Carolina.
We are unable to find a mailing list relating to sales tax in South Dakota, but there is a newsroom at https://dor.sd.gov/newsroom/.
There is a sign up form for a general mailing list at https://notify.app.tn.gov/notify/sign_up.html but it has no topics related to sales tax.
https://public.govdelivery.com/accounts/TXCOMPT/subscriber/new
We are unable to find a mailing list relating to sales tax in Utah.
https://tax.vermont.gov/forms-and-publications/news
https://www.tax.virginia.gov/taxpayer-alerts
On the left side of screen look for “Sign up for email updates”.
https://public.govdelivery.com/accounts/WADOR/signup/17806
We are unable to find a mailing list relating to sales tax in West Virginia.
https://www.revenue.wi.gov/Pages/HTML/lists.aspx
We are unable to find a mailing list relating to sales tax in Wyoming, but there is an archive of newsletters at https://excise-tax-div.wyo.gov/newsletter-taxing-issues.
The post States’ Sales Tax Mailing Lists and Where to Subscribe appeared first on AccurateTax.
]]>The post How COVID-19 Is Affecting Sales Tax appeared first on AccurateTax.
]]>The month of March in particular represented a sharp drop in revenue consumer spending down nearly 20% between February and April during the height of the economic shutdown and mandated quarantine. Those numbers improved in May with an 8% increase, but we remain well below the highs we saw at the start of the year.
In Texas, a 9% drop in state sales tax revenue equated to $320 million in just one month – the lowest since 2010, and Florida estimates peg the drop as high as $700 million over March and April. Some cities in California reported revenue drops as high as 16%, and smaller municipalities that rely on the busy spring months to buoy sales tax revenue for the year have seen drops as sharp as 30% year over year. And in almost all of these locations, COVID-19 cases are surging again, begging the question of whether we’ll see similar shutdowns in the future.
The bottom line is that states and cities that rely on sales tax as a significant percentage of their funding are being hit exceptionally hard by the decreased economic activity caused by the coronavirus pandemic. And while most local economies have at least partially reopened, a surge in cases in late June and early July has already led to the shuttering of restaurants, bars, and other businesses in the hardest-hit states.
The majority of state revenue comes from income and sales taxes. In Florida, sales tax alone is 70% of general revenue, which directly funds local schools, healthcare facilities, and social services among many other endeavors. A sharp drop in revenue has a significant impact on how states are run and what services they can offer.
The Broward Schools Superintendent cited a likely 20-25% cut in the school district’s budget in the coming year. In Connecticut, a state that only saw a 7% drop in revenue from sales tax during The Great Recession, double-digit drops are expected. State and local governments throughout the country are struggling to identify how to close historic budget gaps as residents stay home, businesses are closed or operating at only partial capacity, and travel is almost non-existent.
Sales tax frequently goes into a general fund that is used for police and fire department funding, public schools, transportation and infrastructure, children’s health insurance, parks, and recreational facilities, medical facilities, and more. The loss of that much revenue and the requirement to balance the budget each fiscal year will force these governments to make some hard decisions.
Which brings us to the big question – how will states make enough money to minimize the damage to social services? Schools still need to run. Healthcare facilities are a must right now.
There are a number of concepts under consideration, some of which will have a direct impact on local businesses that are also struggling right now. Things to consider as the crisis stretches on include:
We are months away from any kind of resolution to the current economic crisis. Even if states all stay open and operational as COVID-19 case numbers increase, many consumers are opting to stay in. Factors like school reopenings, restaurant, and public services restrictions, and eventually budget shortfalls could make this even more of an issue.
For your part, pay close attention to the impact of these revenue drops and the actions of your state and any states in which you operate to address it. We are in uncharted waters, and new initiatives will be on the table that would have never been considered before, likely with accelerated timelines. Through careful compliance and regular updates you can be ready for anything that comes your way.
The post How COVID-19 Is Affecting Sales Tax appeared first on AccurateTax.
]]>The post Massachusetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit appeared first on AccurateTax.
]]>This alone isn’t out of the ordinary. More than a dozen states had similar laws on the books before Wayfair, and many online retailers opted not to comply, citing previous Supreme Court decisions like Quill that stated physical nexus was required. But Massachusetts has taken the additional step of telling retailers that sales tax should have been collected and must be remitted retroactively for the months between October 2017 and June 2018.
Because of the state’s decision, six retailers have filed a lawsuit claiming they shouldn’t have to pay the sales tax they would have collected in those eight months, because it was still unconstitutional to require them to do so before the Supreme Court’s ruling. Specifically, they cite language in the Wayfair ruling that appears to argue against retroactive collection of sales taxes.
These six companies alone would owe the state nearly $3 million in back sales taxes in that eight-month period, so are concerned that they, along with many other retailers who did not join the suit, would be required to pay taxes they may not have collected.
The primary goal of the lawsuit by Newegg, Blue Nile, Silver Star Brands, Sweetwater Sound, US Auto Parts Network, and Balsam Brands is to eliminate whatever sales tax obligation the State claims they hold going back to October 2017.
Filed in December, the lawsuit seeks to show that Massachusetts is saddling retailers with an undue burden that they could not have prepared for when they thought the law was illegal. This is not the first time that Massachusetts has faced legal action over this law. Crutchfield – an audio system retailer out of Virginia, similarly argued that the law was too much of a burden.
The argument in the current suit is that the action puts out of state companies at a disadvantage because they did not collect taxes during that eight-month period, in effect discriminating against interstate sellers, which would violate the Commerce Clause. They also argue that Massachusetts is violating the Internet Tax Freedom Act – a law passed in 1998 that says online businesses cannot be taxed differently from offline businesses. The DOR regulations passed by Massachusetts do not apply to print catalogs or other out of state sellers who don’t operate online.
Because of these issues, the plaintiffs are asking for the entire regulation to be blocked.
While only one state of many with similar laws, these situations have ripple effects for companies throughout the United States, due to the very nature of interstate commerce. As new economic nexus laws are implemented and states work to determine how to enforce existing regulations, these issues will continue to develop. For retailers, it represents a time of uncertainty and upheaval, meaning it’s more important than ever to be organized, prepared, and well versed in the laws both nationally and in each state in which they operate.
The post Massachusetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit appeared first on AccurateTax.
]]>The post The US Supreme Court Overturns “Quill” Ban on Online Sales Tax appeared first on AccurateTax.
]]>The ruling came in the case of South Dakota vs. Wayfair, as South Dakota attempted to overturn the previous ruling. South Dakota cited their losses in not being able to collect sales tax on online sales, totaling nearly $50 million a year, and the Government Accountability Office citing nearly $14 billion in total missed tax revenue for all states. The case was a divisive issue that has been wrestled with by state governments, Congress, and large businesses alike for decades as online sales have ballooned to make up a larger percentage of commerce.
The primary argument against Quill is that it was decided in 1992, before ecommerce and internet sales existed. The ruling at the time related to catalog sales and a very narrow slice of the economy. Today, billions in sales are made every year online, with large retailers like Amazon gaining an ever-greater foothold in dozens of industries.
Small retailers like local bookstores, clothing retailers, and others that have been pressured by online retailers came out in favor of overturning Quill, and President Trump has previously voiced his opposition to tax exemption for online companies.
For much of the last twenty years, Congress has intermittently brought forth potential bills to address the issue, but nothing has passed, with proponents often citing the impact of the online retail lobby.
South Dakota’s challenge to the Quill ruling was precipitated by a new law passed recently that would charge retailers with more than $100,000 in sales or 200+ transactions to pay a 4.5% sales tax to the state, regardless of location. While 19 out of 20 of the largest online retailers already collect sales tax, the plaintiffs in the case – Wayfair, Overstock, and Newegg – do not, and South Dakota sued them after their new law was implemented.
Supreme Court Justice Anthony Kennedy wrote the majority in the 5-4 ruling, citing “startling revenue shortfall” for not just South Dakota, but other states who have been impacted by the Quill ruling’s ban on charging online sales tax. This was not the first such case brought before the court either. In 2015, Direct Marketing Association vs. Brohl, in which online retailers sued Colorado over a workaround law they attempted to implement. That case had a narrow ruling, however, and it was the South Dakota case that more directly targeted the decades old precedent.
Chief Justice John G. Roberts Jr., joined by Justices Elena Kagan, Sonia Sotomayor, and Stephen Breyer dissented, with Roberts noting during oral arguments that the issue seemed to be working itself out independently. Amazon and eBay already collect sales tax voluntarily and others have started implementing similar systems. Nonetheless, Justice Anthony Kennedy, joined by Justices Samuel A. Alito Jr., Clarence Thomas, Neil M. Gorsuch, and Ruth Bader Ginsberg voted in favor of vacating and remanding the Quill decision, effectively allowing states to charge online sales tax in the future (and validating all current and pending laws).
With the Quill ruling vacated, it is unclear how states will proceed. Congress has yet to implement legislation at any level to address online sales tax, but with nearly 10,000 taxing jurisdictions in the US, it may feel greater pressure from lobbyists to provide additional guidance or structure.
Another factor is the way in which the large retailers currently collect sales tax. Amazon, for example, does collect sales tax on all direct sales, but does not for third party sellers (except in Washington and Pennsylvania). Other retailers are in similar situations, and with this ruling, the 45 states that charge sales tax can now implement a new online sales tax or enforce recently passed laws more fully.
If you want to learn more about sales tax, we suggest taking a look at our Complete Guide to Sales Tax. In it, we’ve tried to cover everything you need to know about sales tax, from both an e-commerce perspective and the needs of traditional businesses.
The post The US Supreme Court Overturns “Quill” Ban on Online Sales Tax appeared first on AccurateTax.
]]>The post 9 Ways That Declining Gas Taxes Cost Us Money appeared first on AccurateTax.
]]>Here is a look at some of the problems and solutions for gas, road and other travel-related taxes that both consumers and retailers need to understand. Be aware that new regulations, increases and taxes could go into effect as soon as this year.
According to the Columbus Dispatch (page has been deleted), gas tax revenue for cash-strapped states is declining, because cars are getting more fuel-efficient and gas sales are hitting a plateau. In addition, gas prices have been lower, leaving even less tax revenue. Moreover, as roads and highways age and crumble, damage and repair costs rise while state budgets dwindle. Population growth in states like Texas also overburden roads and create congestion, adding to a state’s need for repair and construction. In response, states are attempting to find new areas of revenue to replenish this deficit. These include several strategies that may put more of a burden on retailers. Here are the top revenue creators that governors and senators across the country are reviewing and how they can affect retailers:
Many states are considering charging tax on the wholesale price of gas, rather than or in addition to the pump price. In Virginia, the per-gallon tax paid at the pump has been replaced by the wholesale tax. However, in Minnesota, a new fuel tax would be added on top of the per-gallon tax, which was also recently increased. This two-punch tax could be a blow to consumers, shippers and retailers alike.
According to the NY Times, increasing gas tax is an issue in New Jersey, and has growing support from voters, although it still would be a battle to get the law to pass because of tax-resistant politicians. Utah is facing a proposal to raise gas taxes by 10 cents per gallon, and Illinois is actively debating the issue now, as local businesses raise their concerns. Proponents argue that these tax rates have not gone up in more than a decade – not since 1990’s for Utah as well as other states, like California, which already pays the highest gas tax in the country. This issue is being debated all over the country and will probably have an impact at the ballot box come election time as congressmen divide across party lines on the issue of raising taxes.
Other states are discussing raising current sales tax rates to fund road and highway projects. Arkansas made this change in 2012, but other states are fighting against this idea. The Times-Picayune reports that the Louisiana House of Representatives just failed to pass such a measure, voting down a 1% sales tax increase on May 28th, but other states might not be so lucky. In addition, states have already turned to creating district sales taxes to pay for roads, such as Missouri did back in 2008. This is an important issue online retailers need to keep a sharp eye on, since it will directly impact their tax collection procedures and overall prices when they have a nexus in these states.
These are taxes on the number of miles traveled and involves using GPS devices to track that mileage. This is a sticking point for some with privacy concerns as well as the additional cost of requiring vehicles to have such systems. The Des Moines Register reports that Oregon will be testing this system in July, 2015, with some 5000 volunteers. (Link no longer available.) The issue has already been studied in California, Minnesota, and Nevada. In Oregon, this tax will only be for Oregon drivers, however, any retailer shipping from or to that state may feel the pinch in shipping costs.
Tolls are another way to bring in revenue to pay for damaged roads, but they may need to be very high to support funding existing and proposed roadway projects. For example, one study found costs could be as high as “as high as $30 per car and $90 for heavy trucks” just to fund one proposed highway rebuild project in Missouri. Again, this can place a heavy burden on shipping costs across the country.
Some states are tacking on additional fees. The Des Moines Register reported in December, 2014 (link no longer available) that the state of Washington is now taxing electric vehicles, and its Governor Jay Inslee has also considered taxing carbon emissions. Talk about covering all sides of the coin! California is also looking at raising registration fees as well as a special fee for zero-emission cars. Retailers need to keep an eye all these vehicle taxes and their affect on shipping, especially when using third party services, like a drop shipper.
Texas is a prime example of redirected funding. When the budget was cut in 2011, money was taken from the state’s “Rainy Day” fund to compensate. While its current Congressional leaders vow not to raise taxes, growth demands and lower oil revenues mean that current budgets are too small to meet the demand for road repairs and construction. The state’s transportation committee chairman, Robert Nichols, proposed that motor vehicle sales tax be redirected and targeted for road and highway repairs. Dedicating funding instead of relying on a rainy day will help Texas avoid tax increases for now, but it will be interesting to see how this plays out.
In Michigan, a comprehensive tax measure proposal was just defeated. This proposal would have increased the fuel tax, eliminated sales and use tax on fuel for vehicles while increasing them on non-fuel items. Its defeat shows that raising tax is not a desired solution to road improvements. However, it does leave the future of taxes uncertain in that state and serves as a warning that big changes in sales and use tax may be underway in any state. (In an amusing twist, Michigan legislators are now considering legalizing marijuana and taxing it to pay for roads, in a “pot for potholes” campaign.)
Finally, Forbes reported this winter that the “standard mileage rate for federal income taxes is going up for business miles,” rising from 56 cents for business miles driven to 57.5 cents for taxes reported for 2015. This can help improve deductible for businesses, but with all the changes it might not be enough.
While all this is indeed a tax a challenge for retailers, making roads safer and more efficient will eventually have a positive impact on reducing liability, reducing insurance rates and ensuring the safe and timely delivery of goods. Unfortunately, the pain of tax increases and higher shipping rates will squeeze retailers sooner rather than later. In addition, some of these measures will complicate the process of keeping up to date on state and local sales tax regulations and income tax write offs. The importance of a robust ecommerce solution and a knowledgeable accountant is a must-have for all retailers, especially those who have third party suppliers or nexus in any state to keep their sales and use tax collection and reporting accurate and avoid audits.
The post 9 Ways That Declining Gas Taxes Cost Us Money appeared first on AccurateTax.
]]>The post Tax Subsidies for Large Retailers: Is it Worth the Cost? appeared first on AccurateTax.
]]>The company at the heart of this struggle is Bass Pro Shops, a large chain retailer that is courting local governments all over the country for subsidies to build their shops.
The list of incentives stores like Bass Pro have received include property tax exemptions, tax increment financing (TIF), which reduces taxes for a site over a number of years, low interest taxable bonds issued by the Industrial Development Authority, sales tax exemptions, and property improvement at cost to the town or city involved. These subsidies have locals crying “corporate welfare,” as they argue that taxpayers will end up footing the bill for these projects and any problems they cause – such as damaged roads, flood zones and traffic problems.
While all of these incentives reduce state revenue and force consumers to foot the tax bill, the biggest trouble for small businesses comes from the sales tax incentives for these large stores. For their new store opening next year in North Charleston, SC, Bass Pro Shops will be receiving a tax break “that could allow them to essentially keep half the sales tax revenue they generate for (the next) 15 years,” according to David Slade at The Post and Courier. Do these stores provide enough of an economic boost to justify this revenue loss?
The report “Fishing for Taxpayer Cash,” (PDF file) issued by the nonprofit, nonpartisan group, The Public Accountability Initiative, claims that Bass Pro projects have “won over $500 million in taxpayer subsidies” around the country. As long as it is boosting the economy with jobs, revenue and economic development, it’s all good – right? Not so fast. The report also claims that Bass Pro building projects in communities such as Harrisburg, PA, Mesa, AZ, Cincinnati, OH and Bakersfield, CA have resulted in broken promises, unprofitable shops, fewer jobs than promised, lawsuits and economic stress. Some projects have died before ground was even broken.
These large stores / tourist attractions are not guaranteed to restore economies or provide jobs, but they can and do eat up a state’s resources.
Is there any benefit in all this development to drive customers or revenue to local small businesses? In Buffalo, NY, the Bass Pro Shop site is so self-contained, with parking and restaurant locations, that visitors to the store never see local businesses, providing only so much “economic boost” from this tourist site.
The pain of unfair competition for small businesses doesn’t end there. In 2006, another chain store tourist attraction, Cabela’s, used creative legal positioning to win a special ruling exempting the shop from collecting sales tax in their Boise, ID location. Large scale stores can take the time and effort to creatively court incentives and bend sales tax regulations to meet their needs, furthering corporate profits and taking business away from small mom-and-pop shops that do not have the resources to play on this field.
Large retailer subsidies such as these generous sales tax exemptions appear to be on the rise across the country. Small businesses should arm themselves by getting informed on these topics and watching issues like the Marketplace Fairness Act, as well as speaking out to their local government representatives when large scale retail development projects enter their region.
The post Tax Subsidies for Large Retailers: Is it Worth the Cost? appeared first on AccurateTax.
]]>The post Sales Tax Holidays: Pros and Cons appeared first on AccurateTax.
]]>So far, 19 states held annual tax holidays in 2013, with at least two scheduled in 2014 for Alabama and Puerto Rico – and most likely the other states continuing as well. Wisconsin is currently considering adding a tax holiday this year. Tax holidays generally focus on one retail area, for example, Alabama’s holiday, from February 21-23, 2014, is strictly for weather preparedness items and is not available everywhere. Several states have tax holidays encouraging the purchase of green or Energy Star items. The most common tax holidays take place in August promoting purchase of clothing and/or school supplies.
So tax holidays should be a given, especially for states areas that are close to neighboring states that don’t charge tax, right? Not so fast. A tax holiday means decreased state revenues. States lose anywhere from $8 million to nearly $30 million in tax revenue. In fact, North Carolina passed legislation dropping its sales tax holiday for this year, instead using that revenue for “more broad tax relief”, according to Sarah Curry, Director of Fiscal Policy Studies at the John Locke Foundation.
Many experts believe that the sales tax holiday is nothing more than a political ploy to make candidates look good for the short term, but do little to provide real tax relief. Last year, Matt Gardner, executive director of the Institute on Taxation and Economic Policy, disagreed, saying, “There’s no clear evidence that sales tax holidays have a big impact on sales.” Gardner believes that state revenue losses will impact the consumer elsewhere with increased taxes, loss of services, and budget cuts.
Then, are tax holidays a bust? If you are only measuring tax revenue, of course it’s a negative balance. However, there may be an increase in revenue especially for states with high taxes such as Massachusetts, whose 8th tax holiday in 2013 covered the purchase of nearly any retail item under $2,500. It’s difficult to find reliable statistics on the economic boost such a holiday can provide in terms of increased sales of items that are not tax-free, additional working hours needed to handle the larger consumer turnout, and other benefits the tax relief may provide.
On the retailer side, a sales tax holiday can provide a welcome boost in sales. Many holidays are compulsory, forcing even small businesses to offer the tax discount. But even when optional, the discount can help drive sales for retailers.
The debate of the usefulness of sales tax holidays rages on, but if your state has one, plan to make the most of this opportunity. Smart retailers will use this event to promote all their products with sales and promotions, and use prominent displays –online or off – to market non-eligible items. Equally important is educating consumers about the holiday with advertising and announcements. Your state’s tax holiday can provide a great sale event for your store.
Find the latest sales tax holiday information here: https://www.accuratetax.com/blog/sales-tax-holidays/
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]]>The post Holidays, Sales Tax and Shopping Online appeared first on AccurateTax.
]]>One reason shoppers may be hesitant to do heavy Christmas shopping at an online vendor is that they are uncertain what the sales tax will add to their bill and if, in fact, they even need to pay any. In addition, some vendors are confused themselves and may be breaking the law by not collecting the proper taxes from consumers. Here are some tips that allow you to help your customers and protect your business from costly legal issues:
This holiday season is the right time to make sure that your website is compliant with sales tax laws as they exist right now, and to ease the burden on your customers so they can shop happily.
The post Holidays, Sales Tax and Shopping Online appeared first on AccurateTax.
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