Regulatory Analysis
[May 8, 2019] Effective July 1, 2019, marketplace facilitators are required to collect and remit Indiana sales tax as retail merchants when they facilitate retail transactions for sellers. The recently-enacted law provides that a marketplace is considered a retail merchant if it does any of the following on behalf of the seller: (1) collects the sales […]
[May 8, 2019] The Georgia governor has signed legislation to lower the threshold at which remote sellers must collect and remit sales and use tax. Effective January 1, 2020, remote sellers who obtain gross revenue over $100,000 in the previous or current calendar year, or conducted 200 or more separate retail sales in the previous […]
[May 3, 2019] Last month, New York state passed its 2019 budget which contained some major changes for sales taxes and fees in the state. Most prominent of these changes was the imposition of sales tax liability on online marketplaces beginning June 1, 2019. While the Department of Taxation and Finance had issued an advisory opinion […]
[April 30, 2019] South Carolina Governor Henry McMaster signed S.B. 214 into law clarifying the definition of marketplace facilitators and reinforcing the requirements to collect and remit sales tax in the state. Under this new law, a marketplace facilitator is defined as “any person engaged in the business of facilitating a retail sale of tangible personal […]
[April 26, 2019] The Colorado Department of Revenue has adopted permanent 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 […]
On April 25, 2019, the governor of California approved Assembly Bill No. 147. The bill requires remote sellers to collect and remit California sales and use tax if the seller had over $500,000 in sales of tangible personal property for delivery into California in the preceding or current calendar year. The California Department of Tax […]
On April 10, 2019, Governor Hutchinson of Arkansas, officially signed Act 822 into law, which among other changes enacted a new economic nexus threshold. Remote sellers and marketplace facilitators will be required to collect and remit Arkansas sales and use taxes if in a previous or current calendar year they make 200 transactions or $100,000 in […]
On April 4, 2019, Hawaii Governor David Ige signed SB 396/Act 2 into law. The new law, effective January 1, 2020, establishes marketplace facilitators as the sellers of tangible personal property, intangible property, or services. This is not unusual and is demonstrative of a clear national trend. However, Hawaii has added a unique twist – marketplace sellers are deemed […]
Top Texas politicians are proposing a statewide sales tax rate increase of 1% (from 6.25% to 7.25%) to allow for lower property taxes across the state. The increase would have to be approved both by the legislature and by Texas voters later this year before it could go into effect. If the legislature and Texans approve […]
North Dakota now joins several other states in enacting marketplace legislation. Effective October 1, 2019, marketplace facilitators who have either facilitated more than $100,000 in sales or 200 or more separate transactions into North Dakota in the current or prior calendar year will be required to collect North Dakota sales and use tax. Marketplace facilitators […]
The Municipal Home Rule Pilot Program has become a permanent program in West Virginia after S.B. 4 was signed into law by West Virginia Governor Jim Justice. The Home Rule program will allow municipalities in West Virginia to create revenue streams through the implementation of local sales taxes. The law allows municipalities to enact up […]
Beginning July 1, 2019, Virginia will require remote sellers and marketplace facilitators to collect and remit sales and use tax if they have more than $100,000 in annual gross revenue from sales or at least 200 sales transactions in the state. Marketplace facilitators will also be required to collect and remit sales tax on behalf […]
West Virginia governor Jim Justice recently signed House Bill 2515 into law. The law which is effective June 4, 2019, creates an exemption from sales tax for the sale and installation of mobility enhancing equipment that is installed in a new or used motor vehicle for people with physical disabilities. House Bill 2515 also established […]
South Carolina has issued a revision of its Publication RS-1, Instructions and Specifications for Filing Forms W2. There are no changes to the specifications themselves. However, some addresses have changed: Paper W2s, W2Gs, 1099s, or Extension Request: South Carolina Department of Revenue, PO Box 125, Columbia, SC 29214-0022 CD-ROM: South Carolina Department of Revenue, PO Box […]
The New York Department of Taxation and Finance recently updated their Publication 69, Electronic Reporting of Quarterly Combined Wage and Withholding Tax Information. This publication provides information on regulations and requirements for filing withholding tax information on a quarterly basis, including specifications for electronic transmittals. Updated from a downloadable publication to a web page, there […]
The Kentucky Department of Revenue recently updated Publication 42A003, Withholding Instructions for Employers. This publication provides instructions and withholding guidelines for employers who have filing obligations in Kentucky. This most recent version is an update to a recent version that was released in December 2018, with only one update from the previous version: Section XII, […]
The Kentucky Department of Revenue recently published a new form for correcting information returns called Form K-5C, Corrected report of Kentucky Withholding Statements. This form is used to correct certain information on information returns previously submitted using Form K-5, Employer’s Report of Withholding Tax Statements. Form K-5C can only be filed to correct certain information on […]
Maryland has updated its Form MW506FR, Employer Withholding Final Return Form – which should be submitted with the final employer withholding tax return (MW506 or MW506M) or mailed separately if filing electronically. The only revision to the form is the additional requirement of the last four digits of the employer’s zip code.