Regulatory Analysis
[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 […]
The North Dakota Office of the State Tax Commissioner recently issued an important notice regarding a law change affecting the electronic filing requirement for information returns. Per North Dakota House Bill 1112, the previous electronic filing threshold of 250 or more forms is being replaced with a requirement for all employers with 10 or more […]
The D.C. Office of Tax and Revenue recently updated their Electronic Funds Transfer (EFT) Guide. This publication provides information regarding EFT payments including bank information for payments, TXP and Addenda Record layouts, and tax type codes and definitions. The most recent update added two changes to the publication, which are as follows: A code for […]
The South Carolina Department of Revenue recently published an updated version of Form D-128, Registration Application for Electronic Funds Transfer. This form is used by payers to register their business for automatic payments through ACH Credit or ACH Debit. There is one update to the most recent version of this form, which is as follows: […]
The Georgia Department of Revenue recently published an updated version of the Employer’s Tax Guide. This publication provides information for employers including how to file and pay withholding tax returns, withholding tax tables, and annual filing of information returns. The Guide remains largely unchanged from its previous version with the exception of the addition of […]
Kentucky has migrated its online withholding taxpayer portal, WRAPS, to a new system, Kentucky Gateway Online – which is a more secure portal. Filers and payers should now use this system to access WRAPS in order to file withholding reports. Filers that do not already have Kentucky Gateway Online login credentials need to create a new user […]
[July 1, 2019] Maine has recently enacted legislation requiring marketplace facilitators that meet certain sales thresholds to collect tax on behalf of their marketplace sellers. Marketplace facilitators must collect tax when they have 200 or more separate transactions or gross sales of more than $100,000 during the current or previous calendar year. The law goes into […]