Regulatory Analysis

Get the latest updates in regulatory analysis news

Posted 3 days ago by Oliver Mavor-Parker
New Requirements for Idaho Remote Sellers and Marketplace Facilitators

[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 […]

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Posted 3 days ago by Oliver Mavor-Parker
Oklahoma to Increase Remote Seller Threshold

[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 […]

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Posted 5 days ago by Daniel Kostrzewa
National Framework for the Taxation of Digital Goods and Services – Proposed Legislation

[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” […]

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Posted 1 week ago by Alex Samuel
Colorado Economic Nexus Grace Period Ends May 31, 2019

[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 […]

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Posted 1 week ago by Oliver Mavor-Parker
Georgia to Lower Remote Seller Revenue Threshold for Sales and Use Tax

[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 […]

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Posted 3 weeks ago by Daniel Kostrzewa
California Enacts New Economic Nexus and Marketplace Facilitator Legislation

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 […]

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Posted 1 month ago by Kaitlyn Smethurst
Arkansas Enacts Economic Nexus Law

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 […]

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Posted 1 month ago by Erik Wallin
Hawaii Passes Unique Marketplace Bill

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 […]

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Posted 1 month ago by Michael Bartram
Texas Leaders Propose Increasing State Sales Tax to Lower Property Taxes

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 […]

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Posted 1 month ago by Katherine Mullen
New Mexico Enacts Legislation Relating to Economic Nexus and Marketplace Facilitators

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 […]

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Posted 1 month ago by Kaitlyn Smethurst
Postponement of Sales Tax in Zambia

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 […]

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Posted 2 months 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 4 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 4 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 4 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 4 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 5 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 5 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 5 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 6 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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