Economic Nexus Comes to Kansas After All

Katherine Mullen
July 22, 2019

[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 with the state despite not having a physical presence in Kansas. In a recent turn of events, however, Kansas has joined the fold of states requiring out-of-state sellers to register and collect tax.

The Department of Revenue recently published its overview 2019 Legislative Changes & Enactments. Therein, the Department cites to K.S.A. 79-3702(h)(1)(F), which states that the definition of a retailer doing business in the state includes any retailer with sufficient contacts such that the state would be permitted to require said retailer to collect and remit tax under the Constitution and laws of the United States. The Department states in the publication that Kansas can and does require remote sellers without physical presence to collect and remit applicable sales or use taxes on sales into the state. The publication seems to suggest that this change in policy is immediate; however, the state has confirmed that enforcement will not begin until October 1, 2019.

For additional details, visit the Kansas DOR page.

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Katherine Mullen

Katherine Mullen is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Katherine researches U.S. transaction tax. Katherine holds a B.A. in English Literature from McGill University, an M.S. in Library Science from Simmons College and a J.D. from Suffolk University School of Law. Katherine is a member of the Massachusetts Bar.
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