Regulatory Analysis
Following the decision of the U.S. Supreme Court in South Dakota v. Wayfair, the Minnesota Department of Revenue has provided preliminary guidance on their plans to tax remote sales. The plan is that by October 1, 2018, remote sellers conducting direct sales will be required to register, collect and remit tax for transactions made to Minnesota purchasers […]
Following the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the Wyoming Department of Revenue has announced that it will require remote sellers to collect and remit sales tax for sales made into the state. This requirement will not apply to small sellers who conduct fewer than 200 transactions or have less than $100,000 in […]
Utah governor Gary Herbert called a special session of the legislature, which convened on July 18th, 2018. This session was targeted to address a few critical issues, including online retailer sales tax collection in the wake of the U.S. Supreme Court's ruling in South Dakota v. Wayfair. According to the proposed legislation on this issue, Utah would […]
As a part of the recent legislative Special Session called in Utah, Senate Bill 2001, known as the Online Sales Tax Amendment Bill, passed both chambers of the legislature on July 19, 2018. This bill has similar threshold requirements for remote seller tax collection, as have been seen in bills that have been passed since […]
As reported in this forum, Hawaii has been one of the first states to expressly impose a collection and remittance requirement on remote sellers in the wake of the South Dakota v. Wayfair decision. Their requirement became effective July 1 and until recently purported to apply to transactions retroactive to January 1, 2018. However, Hawaii […]
North Dakota joins the growing number of states requiring the collection of sales tax from certain remote sellers. Beginning October 1, 2018, remote sellers with sales meeting or exceeding either $100,000 or 200 separate transactions shipped to North Dakota during the previous calendar year will be required to collect and remit North Dakota sales tax. For more […]
On June 28, 2018, Massachusetts Governor Charlie Baker signed House Bill 4640 into law. The bill dubbed by some a "Grand Bargain" includes provisions related to the minimum wage, paid family leave as well as a number of measures intended to forestall certain planned ballot initiatives. As it relates to sales tax – the bill creates […]
On June 27, 2018, the Hawaii Department of Taxation released Announcement No. 2018-10 which provides guidance as to the application of the Economic Nexus Bill Act 41 following the decision in South Dakota v. Wayfair Inc. The department indicates through the lens of the Wayfair decision that the requirements of Act 41 ( $100,000 or more or 200 or more […]
On July 1, 2018, just 10 days after being introduced, the New Jersey Legislature (both houses) passed Assembly Bill 4261 which will require remote sellers with over $100,000 in sales or 200 or more separate transactions in the current or prior calendar year to collect and remit sales and use tax. Bill 4261 has the same […]
The Wisconsin Department of Revenue has announced beginning October 1, 2018, Wisconsin will require out-of-state sellers with no physical presence in Wisconsin to collect and remit Wisconsin sales or use tax on sales of taxable products and services into the state. The Wisconsin Department of Revenue will develop rules consistent with the U.S. Supreme Court's […]
On July 3, 2018, the Alabama Department of Revenue issued guidance for online sellers indicating that rule 810-6-2-.90.03, an Alabama regulation which imposes a collection and remittance responsibility on remote sellers with Alabama sales exceeding of $250,000 will be applied prospectively for sales made on or after October 1, 2018. For more information click here.
As expected, states are moving quickly to expand their tax collection capabilities in light of the Supreme Court’s decision in South Dakota v. Wayfair, with Louisiana being the first state to make a big splash. Specifically, in their 2018 special session, the legislature passed a bill (HB 17) re-defining the term “dealer” to include remote […]
Rhode Island’s legislature has passed, and Governor Raimondo has signed, H 7200, the state’s fiscal year 2019 budget. The budget will change the application of sales tax for a number of goods and services effective October 1, 2018. At that time, prewritten software hosted by the vendor will become subject to sales tax as will […]
The Guam Legislature recently voted to repeal the pending imposition of sales tax previously set to go into effect October 2018. The Legislature passed the repeal with eleven votes, enough to override any gubernatorial veto. While the bill to repeal the sales tax is not yet law, it is likely that the sales tax will […]
As a result of the Supreme Court's decision in South Dakota v. Wayfair, Inc., the State of Vermont began collecting sales tax from certain remote sellers on July 1, 2018. In 2016, the Vermont General Assembly passed Act 134 that, upon the overruling of Quill v. North Dakota, would require certain out-of-state vendors to collect […]
The Louisiana Governor signed into law House Bill 10 on June 24, 2018. House Bill 10 includes a Louisiana state level sales and use rate change from 5% to 4.45% effective July 1, 2018 as explained in the Louisiana Dept of Revenue News Release: www.rev.state.la.us/NewsAndPublications/NewsReleaseDetails/11467. Also, please refer to Revenue Information Bulletin 18-016 for details related to the states’ sales and use […]
With the passage of House Bill 10, the temporary one percent tax that was imposed during the 2016 First Extraordinary Session of the Louisiana legislature – and scheduled to expire July 1, 2018 – has been partially extended until June 30, 2025. The tax is now levied at a .45% rate as opposed to a one percent […]
Beginning January 1, 2019, the State of Georgia will require online retailers who meet certain economic thresholds to collect and remit sales tax to the Georgia Department of Revenue. Retailers who: (1) exceed $250,000 in gross revenue from sales of tangible personal property into Georgia in the previous or current calendar year or (2) make 200 […]