Regulatory Analysis
Texas is working on a new post-Wayfair regulation. The current draft proposes to amend 3.286(b)(2) by removing references to “nexus” and replacing them with safe harbor for remote sellers. The draft proposal currently states that the comptroller will not impose collection requirements on remote sellers whose prior year Texas sales are below the safe harbor […]
Maryland has adopted emergency legislation that is effective October 1, 2018. Current regulation under COMAR 03.06.01.33 requires persons engaging in business in Maryland as out-of-state vendors to collect and remit sales and use tax on all taxable sales for use in the state. The current regulations define engaging in business as an out-of-state vendor so […]
The injunction that had been keeping South Dakota from enforcing its 2016 economic nexus law has been lifted. The Governor of South Dakota, Dennis Daugaard, has signed 2018 Special Session Senate Bill 1 into law, which allows the state to finally collect sales tax from certain online sales. Remote sellers with more than 200 transactions or $100,000 or more […]
The Colorado Department of Revenue has adopted temporary emergency 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 beginning December 1, 2018. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the […]
On August 31, 2018, the Indiana Department of Revenue issued a tax bulletin regarding the recently resolved legal challenge to the state's remote sellers law. The department will begin enforcing Indiana's economic nexus law on October 1, 2018. Pursuant to House Enrolled Act (HEA) 1129, Indiana law (IC 6-2.5-2.1(c)) requires a seller without physical presence in Indiana to collect sales […]
Country-by-Country News The Final Countdown to Mandatory eInvoicing in Italy September 1 marked the second milestone of the entry into force of the Italian eInvoicing mandate – this time targeting certain B2C goods purchased by non-EU citizens over a certain amount. But crucially, it also marked the three month, or 122 day, countdown to the […]
Washington’s Department of Revenue announced new rules for remote sellers and marketplace facilitators. Beginning October 1, 2018, remote sellers and marketplace facilitators making $100,000 worth of sales or 200 retail transactions, in Washington will be required to collect and remit sales tax, mirroring the standard recently validated by the Supreme Court in the SD v. […]
On July 27, 2018, the Nebraska Department of Revenue announced their intention to enforce sales tax collection on remote sellers starting January 1, 2019. The Department plans to enforce a threshold similar to what was seen in the Supreme Court’s Wayfair decision; remote sellers that have sales exceeding $100,000 or more than 200 transactions, annually […]
Washington’s Department of Revenue has announced new rules for remote sellers and marketplace facilitators. Beginning October 1, 2018 remote sellers and marketplace facilitators making $100,000 worth of sales, or 200 retail transactions, in Washington will be required to collect and remit sales tax on those sales, consistent with the threshold applied by the South Dakota […]
The Kentucky Department of Revenue recently updated its guidance regarding the impending tax collection and remittance obligation by remote sellers. Specifically, Kentucky has legislation in place that requires remote retailers with 200 or more sales into the state or $100,000 or more in gross receipts from sales into the state based on the previous or current calendar year sales […]
The New Hampshire legislature ended their special session on July 25th without passing legislation intended to protect New Hampshire businesses from being forced to collect sales tax on out-of-state sales. New Hampshire is one of 5 states that do not have a general statewide sales tax and after the recent Supreme Court decision in Wayfair, New […]
Based on recent activity in the Massachusetts legislature, it appears increasingly likely that a Sales Tax Holiday will take place in mid August. Specifically, over the last few days the Massachusetts Senate approved an amendment to an economic development bill establishing a Sales Tax Holiday weekend, running from August 11 to 12. The senate provision […]
On July 24, 2018, the U.S. House Judiciary Committee held a hearing to examine the recent Supreme Court decision in South Dakota v. Wayfair and its impact on consumers and small businesses. The question being debated – should Congress act? Eight witnesses testified as to their perspective on business impact and the wisdom of Congressional action. […]
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 […]