Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.
Vermont Enacts Additional Notice Requirement for Noncollecting Vendors
Effective July 1, 2017, Vermont enacted legislation for an additional notice requirement for non-collecting vendors making sales into Vermont to be filed with the Department of Taxes.
Economic Nexus: The New Standard??
Economic nexus legislation is being introduced, enacted and challenged in court regularly across the states.
Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017
Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.
Massachusetts Issues Economic Nexus Directive for Remote Sellers
On April 3, 2017, the Massachusetts Department of Revenue issued a directive with economic nexus provisions for out-of-state internet sellers, including the adoption of an administrative bright line rule.
Out-of-State Book Club is Dealer Liable for Georgia Sales Tax
Georgia ruled an out-of-state book club is liable for Georgia sales and use tax on sales of books and educational materials sold via mail order and the internet, even though it did not have physical presence in the state.
Connecticut To Pursue Remote Sellers That Don’t Collect Sales Tax
The Connecticut Department of Revenue announced that the state will ramp up efforts to collect sales taxes not paid by online and other out-of-state retailers with significant sales into Connecticut.
Pennsylvania Issues Bulletin on Remote Seller Nexus Requirements
On December 1, 2011, the Pennsylvania Department of Revenue issued a bulletin outlining remote seller activities that constitute nexus with Pennsylvania, including the establishment of click-through nexus.
Alabama Enacts Use Tax Notice and Reporting Requirements Legislation
On March 22, 2017, the Alabama Department of Revenue was authorized to require non-collecting remote sellers to remote Alabama sales to the DOR and notify Alabama customers of their use tax obligations.
Managing Your Business in an Uncertain Sales Tax Nexus Environment
All around the U.S., new sales tax nexus bills are being introduced, enacted, and challenged. Each one of these could affect where you need to collect and remit sales tax.
Amazon to Begin Collecting Arkansas Sales Tax on March 1, 2017
Amazon.com entered a voluntary sales tax collection agreement with Arkansas and will begin collecting sales tax on its sales to Arkansas consumers and businesses beginning March 1, 2017.
Owning Tangible Personal Property for Sale Located in Virginia Sufficient to Create Nexus for Remote Sellers, Effective June 1, 2017
Virginia amended its tax code regarding the nexus requirements for out-of-state businesses to collect and remit sales tax in the state and modified its definition of dealer, changes effective June 1, 2017.
Payment of Sales Tax by Marketplace Provider Relieved Third-Party Sellers in Colorado
The Colorado Department of Revenue released a general information letter stating that a marketplace provider’s payment of sales tax on sales by third-party retailers relieves the obligation of the third-party retailers to collect and remit sales tax.
Amazon to Begin Collecting Wyoming Sales Tax on March 1, 2017
Amazon.com entered a voluntary sales tax collection agreement with Wyoming. Amazon will begin collecting Wyoming sales tax on its sales to Wyoming consumers and businesses beginning March 1, 2017.
Ohio Affirms Bright-Line Presence Test for Out-of-State Retailers
The Ohio Supreme Court issued three decisions upholding commercial activity tax assessments on out-of-state retailers with no physical presence in Ohio, finding the retailer’s gross receipts to meet the bright-line presence test for nexus.
Arizona Issues Ruling on Marketplace Nexus
The Arizona Department of Revenue issued a ruling stating that a business that operates an online marketplace and makes online sales on behalf of third-party merchants is a retailer conducting taxable sales.
Online Sales Simplification Act of 2016 Discussion Draft is Introduced
The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.
Out-of-State Seller of Nutritional Supplements Created Nexus in Washington
An out-of-state retailer was liable for Washington sales tax and business and occupation tax because it had substantial nexus with the state, largely due to employees participating in trade shows and other activities in Washington.
No Regulation Without Representation Act of 2016 Introduced
Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.
Florida Statute Imposing Tax on Florists Does Not Violation U.S. Constitution
A Florida statute that imposes a sales and use tax on florists did not violate the Commerce Clause of the U.S. Constitution as applied to…
Out of State Book Retailer Subject to Use Tax in Alabama
Alabama held that an out-of-state retailer that sold books and educational materials was subject to Alabama use tax since the taxpayer had sufficient contacts or nexus in Alabama to require it to collect, report, and remit use tax.
Louisiana Enacts Use Tax Notice and Reporting Requirements
Effective July 1, 2017, remote sellers must notify Louisiana purchasers at the time of sale that a purchase is subject to Louisiana use tax unless it is specifically exempt.
Hawaii Updates Voluntary Disclosure Process
The Hawaii Department of Taxation (DOT) has updated its voluntary disclosure process, which allows taxpayers to voluntarily disclose any liability for all Hawaii taxes.
Oklahoma Enacts Affiliate Nexus and Reporting Requirements Changes
Oklahoma modified affiliate nexus and reporting requirements, effective 11/01/16. More…