Regulatory Analysis

Posted 1 week ago by Andrew Decker
New York Issues Advisory Opinion on Marketplace Liability

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 […]

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Posted 2 months ago by Sovos
Rhode Island Governor Recommends Eliminating Online Marketplace Seller’s Loophole

As part of the Fiscal Year 2020 Executive Summary, Rhode Island Governor Gina Raimondo, proposes imposing a sales tax on digital downloads of videos, music, and books.  Additionally, the summary proposes the elimination of a loophole that allowed online third-party marketplaces to avoid sales tax.  At this time, there is no further legislative language describing exactly when or how […]

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Posted 2 months ago by Andrew Decker
New York Announces Sales Tax Obligations for Remote Sellers

The New York Department of Taxation and Finance has issued Notice N-19-1 announcing its intention to enforce collection of sales tax from remote sellers. The Department has found that the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 [2018]) has activated New York Tax Law 1101(b)(8)( i )(E) and 1101(b)(8)(iv). […]

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Posted 2 months ago by Sovos
Pennsylvania Announces New Post-Wayfair Sales Tax Collection Requirements for Out-Of-State Retailers

In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Pennsylvania will soon require certain out-of-state retailers to collect and remit sales tax on sales into Pennsylvania. Beginning July 1, 2019, out-of-state retailers are required to collect Pennsylvania state sales tax if their gross sales into Pennsylvania exceed $100,000 during the previous twelve […]

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Posted 2 months ago by Sovos
Wyoming’s New Economic Nexus Rules May Affect DtC Wine Shippers

Last year, the Wyoming Department of Revenue (DOR) announced new “economic nexus” rules, expanding the number of businesses that will be required to collect and remit tax on sales made into the state. We have recently confirmed with the Wyoming Liquor Control Division (LCD) and the DOR that licensed wineries making direct-to-consumer (DtC) sales to […]

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Posted 3 months ago by Alex Samuel
Colorado Readopts Emergency Regulations Regarding Out-of-State Sellers

The Colorado Department of Revenue has readopted 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. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the retailer’s gross revenue from […]

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Posted 3 months ago by Alex Samuel
Colorado Extends Grace Period for New Destination Sourcing Rules

The Colorado Department of Revenue ("the Department") has just issued a "News Release" that has extended their grace period for in-state and out-of-state retailers from the current March 31, 2019 deadline to May 31, 2019. The Department previously indicated that retailers that do not collect sales tax during the grace period must still comply with […]

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Posted 3 months ago by Sovos
California Announces Use Tax Collection Requirements for Out-of-State Retailers

In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, California will soon require certain out-of-state retailers to collect and remit use tax on sales into California. Beginning April 1, 2019, out-of-state retailers are required to collect California state use tax if their sales into California exceed either $100,000 or 200 or more separate […]

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Posted 4 months ago by Sovos
Arkansas Legislature Introduces Remote Seller Legislation

On November 15, 2018, Arkansas House Bill 1002 was filed and introduced in the Arkansas legislature. This bill if passed will require certain out-of-state sellers to collect and remit Arkansas sales and use tax. The bill imposes a threshold similar to many other states throughout the country, which obligates remote sellers who sell either $100,000 […]

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Posted 4 months ago by Alex Samuel
Colorado Offers Grace Period to Out-of-State Retailers

The Colorado Department of Revenue has updated their guidance for out-of-state retailers regarding the new destination sourcing regulations that will go into effect on December 1, 2018. The Department of Revenue is offering a grace period to out-of-state retailers through March 31, 2019 to comply with the new destination sourcing rules. Previously, this grace period […]

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Posted 4 months ago by Sovos
District of Columbia Introduces Remote Seller Legislation

In reaction to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the District of Columbia (D.C.) has introduced legislation that would expand the district’s sales tax collection requirements to retailers without a physical presence in the district. Bill 22-914, the “Internet Sales Tax Amendment Act of 2018,” would require remote sellers to collect […]

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Posted 4 months ago by Erik Wallin
New Jersey Offers a Gift of Tax Amnesty

From November 15, 2018, through January 15, 2019, New Jersey is offering taxpayers the opportunity to clear their tax debts. For taxpayers who choose to file and pay the taxes owed, the state will waive most penalties and reduce interest. Taxpayers will only pay the amount of tax owed and one-half of the balance of […]

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Posted 4 months ago by Sovos
Australia to Abolish Tax on Feminine Hygiene Products

Australian Treasurer, Josh Frydenburg, has announced that the Australian Government is taking steps towards removing the 10% GST that is imposed on feminine hygiene products in Australia. Frydenburg stated last week that it was the intent of the legislature to have an exemption in place by January 1, 2019 for these products. This announcement comes ahead […]

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Posted 5 months ago by Alex Samuel
South Dakota Settles with Wayfair Defendants

The State of South Dakota has entered into a settlement agreement with the companies of Wayfair, Overstock, and Newegg. The settlement effectively ends the litigation between the state and the three online retailers that refused to comply with South Dakota’s remote seller law. In 2016, the South Dakota state legislature passed legislation requiring out-of-state retailers […]

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Posted 5 months ago by Alex Samuel
Wyoming to Begin Taxing Out-of-State Retailers

The Wyoming Department of Revenue has updated a bulletin clarifying that out-of-state retailers that make more than $100,000 of gross sales into Wyoming or engage in 200 or more separate transactions annually will be required to collect and remit sales and use taxes on all sales made on and after February 1, 2019 that are […]

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Posted 5 months ago by Alex Samuel
Colorado In-State Retailers Required to Collect Sales Taxes at Point of Delivery

Beginning December 1, 2018, the Colorado Department of Revenue will require in-state retailers to collect and remit state sales tax and any applicable state-collected local and special district taxes based on the jurisdiction’s tax rate at the point of delivery. This requirement includes deliveries of taxable goods to Colorado addresses that lie outside the retailer’s […]

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Posted 6 months ago by Alex Samuel
West Virginia to Begin Taxing Out-of-State Retailers

The West Virginia State Tax Department has issued an Administrative Notice that out-of-state vendors that deliver more than $100,000 of goods or services into West Virginia or engage in 200 or more separate transactions during calendar year 2018 will be required to collect and remit West Virginia state and municipal sales and use taxes on […]

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Posted 6 months ago by Alex Samuel
Wisconsin Publishes Emergency Rule Related to Taxing Out-of-State Retailers

The Wisconsin Department of Revenue has published an emergency rule describing the details of Wisconsin’s new sales and use tax on out-of-state retailers. Beginning October 1, 2018, Wisconsin requires out-of-state retailers with no physical presence in Wisconsin to collect and remit Wisconsin sales or use tax on sales of taxable products and services into the […]

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Posted 6 months ago by Sovos
Nevada Adopts Post-Wayfair Regulations

According to a statement released by the Nevada Department of Taxation, the state is imposing collection requirements for remote sellers, who do not have physical nexus, making sales of tangible personal property into Nevada. As of October 1, sellers who had in excess of $100,000 in gross revenue from retail sales into Nevada, or who […]

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Posted 6 months ago by Sovos
Texas Working on Post-Wayfair Regulation

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 […]

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