Regulatory Analysis

The New Mexico Department of Taxation and Revenue recently released Bulletin B-400.4, publishing the effective interest rates for late payment of tax due. This bulletin is released on a periodic basis during the course of the year to announce interest rates applicable for specific time frames. The interest rate for the period between July 1, […]

[July 31, 2019] A recently effective New Hampshire law will require states to provide written notice at least 45 days prior to taking any action to determine sales or use tax liability against a New Hampshire remote seller. After receiving notice, the New Hampshire Department of Justice will examine whether any proposed tax collection obligations violate […]

[June 28, 2019] On June 26, 2019, the governor of Connecticut signed HB 7424 into law, thereby decreasing Connecticut’s economic nexus threshold from $250,000 to $100,000. Effective July 1, 2019, Connecticut will require out-of-state retailers to collect and remit sales tax if they had gross receipts of at least $100,000 and made 200 or more retail […]

[August 2, 2019] Among the many changes found in the recently passed Ohio Budget Bill, H.B. 166, Ohio has removed the statutory provisions previously imposing physical nexus standards on sellers using “in-state software” to sell goods and services to consumers inside Ohio. This former nexus standard is commonly referred to as “cookie” nexus. Specifically, under Ohio’s […]

[August 1, 2019] As we approach this year’s Sales Tax Holiday in Massachusetts, a debate has ensued as to whether prepared meals could be purchased tax fee during the weekend of August 17 and 18. The statute establishing the annual Holiday in the “Grand Bargain” legislation of 2018, did not explicitly state that meals were […]

[July 31, 2019] Massachusetts Governor Charlie Baker recently signed the 2020 Fiscal Year Budget which includes statutory language establishing a new economic nexus rule effective October 1, 2019. This new law replaces their existing “cookie nexus” standard with requirements emblematic of the national trend subsequent to the Wayfair Supreme Court decision. Under the old rules, a […]

[July 30, 2019] North Carolina has approved a bill that expands sales tax on digital property by eliminating the requirement that an item have a taxable, tangible corollary in order to be taxable.  The bill, which goes into effect October 1, 2019, defines “certain digital property” as audio works, audiovisual works, books, magazines, newspapers, newsletters, reports, […]

[July 24, 2019] On July 23, 2019, the Ohio Department of Taxation released a tax alert clarifying and detailing the sales tax and nexus implications for marketplace facilitators, based on the recent passing of Ohio H.B. 166.  As previously reported by Sovos, H.B. 166 obligates marketplace facilitators to collect and remit Ohio sales taxes on behalf of […]

Pennsylvania has revised REV-415, Employer Withholding Information Guide. The only update is to the mailing addresses for sending paper information returns to the DOR. Paper 1099-Rs or 1099-MISC showing PA tax withheld must be accompanied by the (REV-1667) Annual Withholding Reconciliation Statement. Forms should be mailed to:   PA Department of Revenue Bureau of Business […]

The Governor of California has signed a bill that will institute a health insurance individual mandate – requiring California residents to maintain minimum essential coverage (MEC), as was construed under Affordable Care Act, for themselves and their dependents.  Failure to do so will result in the imposition of a penalty, to be determined by the California Health […]

[July 18, 2019] On July 17, 2019, the Ohio legislature passed House Bill 166, which among other provisions, enacts a requirement for marketplace facilitators to collect and remit sales and use tax on behalf of all sellers who use the marketplace when certain conditions are met.  Under House Bill 166, marketplace facilitators are required to collect […]

[July 19, 2019] Non-Kansans, it is time to collect in the Sunflower State! Earlier this year, it looked as if Kansas was going to buck the national trend of establishing economic nexus for remote sellers when the Governor vetoed House Bill 2033, which outlined when a remote seller would be deemed to have established nexus […]

[July 11, 2019] On June 28, 2019, the governor of Pennsylvania signed HB 262 into law. Effective July 1, 2019, this law requires any person or business with $100,000 or more in annual gross sales to Pennsylvania customers to collect and remit Pennsylvania’s 6 percent sales tax on taxable transactions. The law codifies the economic nexus […]

[July 8, 2019] Wisconsin recently enacted legislation requiring marketplace facilitators to collect tax on behalf of their marketplace sellers when certain thresholds are met. Marketplace facilitators must collect tax when they have 200 or more transactions or gross sales of more than $100,000 in the current or previous calendar year. The law goes into effect January […]

[July 9, 2019] The Governor of Hawaii recently signed SB 162 into law. This bill has direct and immediate impact on motor vehicle rental companies doing business in the state of Hawaii. Specifically, pursuant to this new bill, effective July 1, 2019, the rental motor vehicle surcharge is increased from $3.00 per day (or any portion […]

Oregon recently passed a sweeping paid family leave law which would give paid time off to those responsible for the care of sick family members or themselves. House Bill 2005 was signed into law on July 1, 2019, and would provide paid leave benefits to new parents, victims of domestic violence, and those charged with […]

The IRS has finalized regulations, pursuant to Internal Revenue Code §§ 6051 and 6052, that allow for TIN masking on W-2s beginning in tax year 2020 (for forms to be filed in 2021). The Tax Cuts and Jobs Act, passed in 2017, allowed for the IRS to implement this regulation for purposes of identity theft protection […]

The Virginia Department of Taxation is making a change to state interest rates relating to the overpayment and underpayments of tax for the third quarter of 2019. Virginia Code §58.1-15 provides for a rate that is 2% higher than the federal rate: since federal rates for the third quarter of 2019 are at 5%, Virginia […]