Regulatory Analysis
On March 21, 2019, Governor Ricketts of Nebraska signed LB284 into law, enacting requirements for marketplace sellers to collect and remit sales and use tax in Nebraska. Under this legislation, sellers will be considered “doing business in Nebraska” when they have 200 or more transactions or sell more than $100,000 in products into Nebraska via the internet […]
Utah voters approved Proposition 3 on November 6, 2018. Proposition 3 includes a state-level sales and use tax rate change from 4.70% to 4.85% effective April 1, 2019. Please refer to Utah State Tax Commission Tax Bulletin 01-19 for more details and a listing local rate changes to take effect April 1, 2019.
The State of Washington recently passed SB 5581 which simplifies economic nexus rules for remote sellers and marketplace facilitators which became effective immediately upon signing by the governor on March 15, 2019. The legislation eliminates the 200 sale threshold for economic nexus and codifies the $100,000 in annual sales threshold based on cumulative gross receipts on retail sales (previously […]
Virginia recently signed SB 1715 into law which applies a reduced state sales tax rate of 1.5 percent for essential personal hygiene products which includes diapers, disposable undergarments, pads, menstrual cups, and tampons. The reduced sales tax rate for personal hygiene products will become effective on January 1, 2020 and will be taxed at the same rate […]
The New York State Department of Taxation and Finance has issued TSB-A-19(1)S which found that an online marketplace which sold software on behalf of third-party sellers could be viewed as a co-vendor liable for the collection and remittance of sales tax on the sales of prewritten software. The opinion states that if the marketplace collects and […]
As part of the Fiscal Year 2020 Executive Summary, Rhode Island Governor Gina Raimondo, proposes imposing a sales tax on digital downloads of videos, music, and books. Additionally, the summary proposes the elimination of a loophole that allowed online third-party marketplaces to avoid sales tax. At this time, there is no further legislative language describing exactly when or how […]
The New York Department of Taxation and Finance has issued Notice N-19-1 announcing its intention to enforce collection of sales tax from remote sellers. The Department has found that the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 [2018]) has activated New York Tax Law 1101(b)(8)( i )(E) and 1101(b)(8)(iv). […]
In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Pennsylvania will soon require certain out-of-state retailers to collect and remit sales tax on sales into Pennsylvania. Beginning July 1, 2019, out-of-state retailers are required to collect Pennsylvania state sales tax if their gross sales into Pennsylvania exceed $100,000 during the previous twelve […]
Last year, the Wyoming Department of Revenue (DOR) announced new “economic nexus” rules, expanding the number of businesses that will be required to collect and remit tax on sales made into the state. We have recently confirmed with the Wyoming Liquor Control Division (LCD) and the DOR that licensed wineries making direct-to-consumer (DtC) sales to […]
The Colorado Department of Revenue has readopted temporary emergency regulations to require out-of-state retailers that are doing business in Colorado and have substantial nexus with the state to collect Colorado sales or use tax. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the retailer’s gross revenue from […]
In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, California will soon require certain out-of-state retailers to collect and remit use tax on sales into California. Beginning April 1, 2019, out-of-state retailers are required to collect California state use tax if their sales into California exceed either $100,000 or 200 or more separate […]
The Colorado Department of Revenue ("the Department") has just issued a "News Release" that has extended their grace period for in-state and out-of-state retailers from the current March 31, 2019 deadline to May 31, 2019. The Department previously indicated that retailers that do not collect sales tax during the grace period must still comply with […]
On November 15, 2018, Arkansas House Bill 1002 was filed and introduced in the Arkansas legislature. This bill if passed will require certain out-of-state sellers to collect and remit Arkansas sales and use tax. The bill imposes a threshold similar to many other states throughout the country, which obligates remote sellers who sell either $100,000 […]
The Colorado Department of Revenue has updated their guidance for out-of-state retailers regarding the new destination sourcing regulations that will go into effect on December 1, 2018. The Department of Revenue is offering a grace period to out-of-state retailers through March 31, 2019 to comply with the new destination sourcing rules. Previously, this grace period […]
In reaction to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the District of Columbia (D.C.) has introduced legislation that would expand the district’s sales tax collection requirements to retailers without a physical presence in the district. Bill 22-914, the “Internet Sales Tax Amendment Act of 2018,” would require remote sellers to collect […]
From November 15, 2018, through January 15, 2019, New Jersey is offering taxpayers the opportunity to clear their tax debts. For taxpayers who choose to file and pay the taxes owed, the state will waive most penalties and reduce interest. Taxpayers will only pay the amount of tax owed and one-half of the balance of […]
Australian Treasurer, Josh Frydenburg, has announced that the Australian Government is taking steps towards removing the 10% GST that is imposed on feminine hygiene products in Australia. Frydenburg stated last week that it was the intent of the legislature to have an exemption in place by January 1, 2019 for these products. This announcement comes ahead […]
The State of South Dakota has entered into a settlement agreement with the companies of Wayfair, Overstock, and Newegg. The settlement effectively ends the litigation between the state and the three online retailers that refused to comply with South Dakota’s remote seller law. In 2016, the South Dakota state legislature passed legislation requiring out-of-state retailers […]