Regulatory Analysis
[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 […]
New Mexico House Bill 6 has been signed into law as Act 270, which changes the definition of “engaging in business” to include persons lacking physical presence in the state (including marketplace providers) who had at least $100,000 of taxable gross receipts in the previous calendar year. Further, where marketplace providers collect tax on behalf […]
As a part of the 2019 Budget address, Zambia’s Ministry of Finance Margaret Mwanakatwe previously announced that the nation was switching from a VAT system to a non-refundable sales tax regime starting on April 1, 2019. Despite this announcement, the Minister of Finance announced at the end of last week that in order to allow for […]
On March 26, 2019, Governor Matt Bevin of Kentucky signed HB 354 into law. The law requires that marketplace providers collect and remit Kentucky sales tax on all sales that the marketplace provider either makes on its own behalf or facilitates on behalf of its marketplace sellers, provided that certain economic thresholds are met. Marketplace […]
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 […]
West Virginia’s Governor Jim Justice recently signed HB 2813 into law which requires marketplace facilitators and referrers to collect and remit sales and use tax if they have $100,000 in annual gross revenue from sales or at least 200 sales transactions in the state, effective July 1, 2019. Marketplace facilitators will also be required to collect and […]
A new law requiring out of state sellers to collect and remit sales tax has been signed by Governor Gina Raimondo. This law closes loopholes which did not require out of state sellers to register for a permit in the state of Rhode Island and collect sales tax. This change will help minimize losses that Rhode […]
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 […]
North Carolina Governor Roy Cooper signed Senate Bill 56 into law which codifies the North Carolina Department of Revenue directive published in response to the South Dakota v. Wayfair U.S. Supreme Court Decision. The legislation requires remote sellers to collect and remit sales and use tax when the seller, for either the current or previous year, has […]
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 […]