News & Tips

Here you can read up on significant developments in the world of sales and use tax. Find the latest legislative updates and helpful tips to keep you in compliance across all 50 states. You can filter news items by topic and/or a jurisdiction of interest.

Arizona Business Owner Complains Louisiana Sales Tax is Unconstitutional for Out-of-State Sellers

Louisiana is facing complaints from an Arizona jewelry wholesaler claiming that their sales tax system is unconstitutional due to its compliance burdens on out-of-state sellers.

Amazon FBA Warehouses in Pennsylvania Doesn’t Establish Physical Presence

The Commonwealth Court of Pennsylvania sided with the Online Merchants Guild as they pushed back on the Department of Revenue’s charges for taxes owed.

Wayfair Sues Colorado City and Department of Revenue Over Undue Burdens on Out of State Taxpayers

Wayfair LLC, the defendant in the landmark 2018 ruling that created the standards for economic nexus, has filed suit in Colorado to challenge the nexus standards of the state and its home rule cities, arguing that the state\’s tax regime violates the US constitution and the standards laid out in the 2018 case.

Arkansas sustains sales tax assessment against company ruled to have sufficient nexus within the state

A June 2022 ruling by an Arkansas Administrative Law Judge sustained a tax assessment by the Department of Finance and Administration against a company deemed to have “sufficient nexus” within the state.

Oklahoma Makes Changes to Qualifications of Marketplace Facilitators

Oklahoma amended their definition of marketplace facilitator to include any person that facilitates any retail sales of “products,” not only retail sales of “tangible personal property.”

Indiana Enacts Marketplace Nexus Legislation

Indiana has enacted legislation with marketplace nexus provisions, effective July 1, 2019.

Massachusetts Cookie Nexus Challenged

In the US Supreme Court decision, South Dakota v. Wayfair, it was made clear that taxing sales from out-of-state sellers cannot be applied retroactively and electronic cookies do not constitute physical presence according to the Massachusetts Appellate Tax Board in a recent ruling.

Colorado Won’t Require Local Licenses from Remote Sellers

Colorado will no longer require remote sellers, “retailers without physical presence or with only incidental physical presence,” to have local licenses in the state’s approximately 70 home-rule cities.

Alaska Remote Seller Sales Tax Commission Approves Remote Seller Sales Tax Code

The Alaska Remote Seller Sales Tax Commission passed its Remote Seller Sales Tax Code that would apply in local municipalities that adopt it.

California Court Dismisses Amazon Seller Lawsuit against California Department of Tax and Fee Administration

An e-commerce trade group’s attempt to stop California from pursuing back sales taxes from sellers with inventory housed at in-state Amazon fulfillment centers was dismissed.

Puerto Rico has Joined 45 States in Adopting Economic Nexus

Puerto Rico established in January of 2021 that businesses making more than $100,000 in total gross sales or at least 200 transactions in Puerto Rico annually are required to register with the Puerto Rico Department of Treasury and collect and remit Puerto Rico sales tax.

Ohio Enacts New Economic Nexus Provisions and Marketplace Nexus Legislation

Ohio has enacted legislation that creates new requirements for certain remote sellers, effective August 1, 2019, and marketplace facilitators, effective September 1, 2019.

North Carolina Imposes Economic Nexus Threshold

Remote sellers exceeding North Carolina’s economic nexus threshold must register and collect tax by November 1, 2018.

Kansas Enacts Economic and Marketplace Nexus Legislation Following Veto Override

Remote sellers and marketplace facilitators are required to collect and remit tax if they exceed the state’s $100,000 threshold, effective July 1, 2021.

California Imposes New Marketplace Facilitator Requirements

A new law has extended the California marketplace facilitator and marketplace seller requirements to incorporate California’s “Fee Collection Procedures Law.”

The State of Louisiana Announces Voters Will Decide to Overtake the Sales Tax Collection System

The Louisiana Legislature has passed legislation that would establish a centralized sales tax commission and ultimately break up the state’s current systems of collections.

South Carolina Extends COVID-19 Related Remote Employee Tax Relief

South Carolina extended the COVID-19 tax relief with regards to the nexus for income and sales tax created by employees that are temporarily working in another jurisdiction due to COVID-19.

New Jersey to End Waiver of Sales Tax Nexus for Remote Employees Effective October 1, 2021

The state of New Jersey has announced their waiver of sales tax nexus requirements for companies with employees working remotely in the state due to the COVID-19 pandemic will come to an end

British Columbia Adopts Provincial Sales Tax Requirements for Canadian Remote Sales and Foreign Software

A series of rules originally passed by the parliament of British Columbia in February 2020 that imposed Provincial Sales Tax collection requirements on businesses located outside of the province have come into effect as of April 1, 2021.

Maine Passes Act Removing Transaction Count From Economic Nexus Threshold

Maine Governor Janet Mills signed a bill on June 11, 2021 that will remove the transaction count threshold from the state\’s economic nexus rules for remote sellers effective January 1, 2022.

Missouri Officially Enacts Economic Nexus and Marketplace Facilitator Laws

On June 30, 2021, Missouri Governor Mike Parson signed SB 153 & 97, finally creating economic nexus provisions in the state, effective January 1, 2023.

New Mexico Implements Destination Based Sourcing Rules

On July 1, 2021, new rules for the New Mexico gross receipts tax came into effect, switching to destination-based sourcing for both New Mexico in-state and out of state sellers.

Canadian Laws for Non-Resident Vendors of Digital Products and Services, Users of Fulfillment Warehouses, and Short-Term Rentals Come into Effect

On July 1, 2021, three new measures created under Bill C-30 came into effect requiring non-resident businesses to begin collecting GST/HST on sales of digital goods and sales made through digital platforms.

Colorado General Assembly Has Extended the Deadline for Destination Sourcing for Small Businesses

The General Assembly of Colorado has enacted SB21-282, which exempts small businesses who make $100,000 in retail sales, from using destination sourcing requirements.