[June 26, 2019] New York Senate Bill S06615 (A06615) was signed into law on June 24th, increasing the economic nexus threshold to $500,000 worth of sales of tangible personal property. At the beginning of this year, the Department of Taxation of Finance released a notification stating that the Supreme Court’s decision in the Wayfair decision had activated a previously dormant law provision which established sales tax liability for out of state sellers who made $300,000 worth of sales of property into the state and had at least 100 transactions in the state. As part of this year’s budget, the state imposed liability on online marketplaces which also met this threshold. Senate Bill S06615 increases the $300,000 threshold for both marketplace facilitators and remote sellers to $500,000.
The bill also relieves remote vendors who in good faith collect local sales tax at an incorrect rate during the first four quarters after they become a remote vendor from interest and penalties which result from the application of the incorrect rate. The remote vendor is still liable for any unpaid local tax however.
The bill is immediately effective, however the increased threshold for remote sellers and the liability relief are deemed to have retroactively taken effect on June 21, 2018, while the increased threshold for marketplaces is deemed to have retroactively taken effect on June 1, 2019.
The full text of the relevant bill can be found here.
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