Regulatory Analysis
[May 22, 2019] Pursuant to recently enacted House Bill 2140, all sales of gold or silver coins as well as bullion of gold, silver, palladium, or platinum are exempt from sales and use tax in Kansas. Bullion is therein defined as “bars, ingots or commemorative medallions of gold, silver, platinum, palladium, or a combination thereof, for […]
[May 22, 2019] The state of Texas recently approved a new law giving remote sellers who are required to collect and remit local use taxes in Texas an option to collect the amount as a single local use tax rate as an alternative to combined local use tax rates. Under the law, a remote seller can […]
[May 22, 2019] With the passage of House Bill 6, effective July 1, 2019, the definition of “engaging in business” has been amended to apply to persons lacking physical presence in New Mexico provided they had at least $100,000 in taxable gross receipts from sales, leases and licenses of tangible personal property the previous calendar year. […]
[May 20, 2019] The Alabama Supreme Court recently issued a decision in Russell County Community Hospital v. State Department of Revenue holding that all software is tangible personal property and thus subject to sales tax. A number of justices concurred with respect to the result but not the reasoning of the decision and it is […]
[5-15-2019] Starting June 1, 2019, Idaho will require sellers who do not have a physical presence in Idaho to collect, report and pay state sales and use tax if they have cumulative gross receipts from sales delivered into Idaho exceeding $100,000 in the previous or current calendar year. Marketplace facilitators who meet the threshold above will […]
[May 17, 2019] Effective November 1, 2019, Oklahoma will increase its remote seller threshold. In place of the prior $10,000 threshold, remote sellers who have made taxable sales of $100,000 or more during the current or preceding calendar year must collect and remit tax. The obligation to collect tax begins on the first calendar month following […]
[5/14/2019] The U.S. Senate and the U.S. House of Representatives have both introduced bills entitled, “Digital Goods and Services Tax Fairness Act of 2019.” The legislation aims to create a national framework for when and how state and local governments can tax digital goods and services. The proposed legislation establishes that the “customer tax address” […]
[April 29, 2019] The Colorado Department of Revenue provided a grace period for in-state and out-of-state retailers to comply with new destination sourcing and economic nexus rules. This grace period ends on May 31, 2019. Beginning June 1, 2019, in-state retailers will be required to collect and remit sales taxes based on the jurisdiction’s tax […]
[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 […]