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.
Marketplace Facilitators and Payment Processors Find Themselves in the Global Tax Compliance Crosshairs – Part II As we discussed in part I, “Marketplace Facilitators and Payment Processors – The New Taxpayers?” an indirect tax trend the past several years is an effort to expand the number of types of businesses
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
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
On March 26, 2019, Governor Matt Bevin of Kentucky signed HB 354 into law. The law requires that marketplace providers collect and remit Kentucky sales tax on all sales that the marketplace provider either makes on its own behalf or facilitates on behalf of its marketplace sellers, provided that certain
North Dakota now joins several other states in enacting marketplace legislation. Effective October 1, 2019, marketplace facilitators who have either facilitated more than $100,000 in sales or 200 or more separate transactions into North Dakota in the current or prior calendar year will be required to collect North Dakota sales
West Virginia’s Governor Jim Justice recently signed HB 2813 into law which requires marketplace facilitators and referrers to collect and remit sales and use tax if they have $100,000 in annual gross revenue from sales or at least 200 sales transactions in the state, effective July 1, 2019. Marketplace facilitators will also
Marketplace facilitators and payment processors find themselves in the global tax compliance crosshairs. While approaches may differ across the globe, one of the defining trends in indirect tax over the last few years has been the effort to expand the number of types of businesses responsible for collecting tax. However,
On March 21, 2019, Governor Ricketts of Nebraska signed LB284 into law, enacting requirements for marketplace sellers to collect and remit sales and use tax in Nebraska. Under this legislation, sellers will be considered “doing business in Nebraska” when they have 200 or more transactions or sell more than $100,000 in products
The State of Washington recently passed SB 5581 which simplifies economic nexus rules for remote sellers and marketplace facilitators which became effective immediately upon signing by the governor on March 15, 2019. The legislation eliminates the 200 sale threshold for economic nexus and codifies the $100,000 in annual sales threshold based on cumulative gross
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
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
Following the decision of the U.S. Supreme Court in South Dakota v. Wayfair, the Minnesota Department of Revenue has provided preliminary guidance on their plans to tax remote sales. The plan is that by October 1, 2018, remote sellers conducting direct sales will be required to register, collect and remit tax for
Oklahoma recently passed a law intended to capture sales and use tax for purchases over the internet. The new law, passed as House Bill 1019XX, requires remote sellers and marketplaces to either register for and collect Oklahoma sales tax at the time of sale; or both (a) provide detailed notices
Arkansas imposes a statewide sales and use tax rate of 6.5%, as established under the Arkansas tax code. While Arkansas does not allow local jurisdictions to levy their own independent sales tax structures, cities and counties may impose additional local sales taxes that apply on top of the Arkansas state
The State of Alaska sales tax system is unique compared to other U.S. states. Alaska does not impose a statewide sales and use tax, making it one of the few states without a general retail sales tax. Instead, sales tax in Alaska is administered at the local level, where cities
Iowa imposes a statewide sales and use tax rate of 6%. The state does allow local jurisdictions to levy additional sales taxes. What’s Taxable in Iowa? Iowa sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services must
The District of Columbia (D.C.) imposes a statewide sales and use tax rate of 6%. Unlike other states, local jurisdictions cannot levy additional taxes, which simplifies compliance compared to areas with varying local sales tax rates. What’s Taxable in District of Columbia? District of Columbia sales and use tax applies