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.

Out-of-State Retailer May Collect Sales Tax According to Colorado DOR General Information Letter

In a General Information Letter dated March 4, 2024, the Colorado Department of Revenue provided clarification about the sales and use tax notice and reporting requirements for noncollecting retailers in Colorado.

Washington Court of Appeals Upholds Pre-Marketplace Facilitator Amazon FBA Seller Liabilities

In a ruling filed on January 23, 2024, the Court of Appeals of the State of Washington denied an appeal of an audit assessment made by the Department of Revenue on sales made by two Amazon sellers between 2011 and 2018.

Indiana Enacts Economic Nexus Legislation

Effective July 1, 2017, Indiana requires remote sellers to collect and remit sales tax on sales of tangible personal property, products transferred electronically, and services delivered in Indiana if gross revenue or number of sales exceed a certain threshold.

Indiana Enacts Marketplace Nexus Legislation

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

South Carolina Holds that Amazon Owes Tax on Pre-Wayfair Third Party Sales

A judge has held that Amazon owes uncollected taxes, penalties, and interest on third-party sales made pre-Wayfair.

Wyoming Removes 200 Transaction Threshold from Economic Nexus Rules

Effective July 1, 2024, Wyoming will no longer require 200 transactions as part of the state’s economic nexus threshold.

Remote Retailer Files Challenge to Illinois “Leveling the Playing Field” Laws

PetMeds, a Florida based online retailer of pet supplies and medication, has recently lodged a petition with the Illinois Independent Tax Tribunal to challenge an audit assessment.

Washington Affirms Business & Occupation Tax Assessment Based On Business Activities of Out of State Taxpayer

Washington state appellate panel affirmed the Board of Tax Appeals’ final decision granting summary judgment finding in favor of the Washington Department of Revenue (DOR) for a Business and Occupation (B&O) tax assessment.

Louisiana Clarifies Treatment of Marketplace Sales for In-State Businesses

The Louisiana Sales and Use Tax Commission for Remote Sellers has issued an Information Bulletin to provide additional guidance to marketplace facilitators and sellers about each\’s responsibility for sales tax

North Carolina Online Retailer Files Complaint Against Accounting Firm Over Failure to Advise on Wayfair Nexus Implications

North Carolina-based online retailer lodged a complaint in North Carolina Business Court against their tax advisory firm.

California Adopts New Regulations to Clarify Marketplace Facilitator Responsibilities

California has added language to its Code of Regulations to clarify which businesses have responsibilities under their marketplace facilitator laws.

Texas Upholds Nexus Determination for Out-of-State Seller

The Texas Comptroller of Public Accounts upheld a nexus determination for an out-of-state seller making sales of licensed software into Texas.

Dismissal of Illinois Qui Tam Claim Against UK Tailor Affirmed

A Chicago man’s qui tam action claim against a U.K. tailor was dismissed by a circuit court. The dismissal was recently affirmed by an Illinois Appellate Court.

Event Vendor Found Liable for Sales Tax in Mississippi

The Mississippi Supreme Court unanimously decided that Saltwater Sportsman Outfitters LLC is liable for $80,000 in additional sales tax.

Louisiana Removes 200 Transaction Threshold from Economic Nexus Rules

Effective August 1, 2023, Louisiana will no longer have 200 transactions as part of the state\’s economic nexus threshold.

Utah Legislation Updates Peer-to-Peer Car-Sharing Regulations

A recently enacted Utah bill changes how motor vehicles involved in car-sharing platforms are taxed.

South Dakota Drops 200 Transaction Count from its Economic Nexus Threshold

On February 13, 2023, South Dakota Governor Kristi Noem signed Senate Bill 30 into law, which eliminates the 200-transaction threshold from South Dakota’s economic nexus threshold, effective July 1, 2023.

Taxpayer Doesn’t Meet Definition of Marketplace Facilitator in North Carolina

A North Carolina taxpayer who is an affiliate of original equipment manufacturers (OEMs) does not meet the definition of a “marketplace facilitator” per a private letter ruling from the North Carolina Department of Revenue.

Texas Comptroller Explains Remote Seller, Marketplace Tax Policies

The Texas Comptroller of Public Accounts has offered new guidance and answers to FAQs for marketplace sellers and marketplace provides.

CA Appeals Court Sides with CDTFA And Amazon in Sales Tax Issue

The California Court of Appeal, Second Appellate District released a decision on January 9,2023, confirming the CDTFA had the legal discretion to hold third party sellers responsible for the sales tax due on sales made through Amazon.

North Carolina Supreme Court Rules Against Sales and Use Tax Distinction in Wisconsin Taxpayer’s Appeal

The Supreme Court of North Carolina ruled to uphold a sales tax assessment against a Wisconsin based printer, rejecting the taxpayer\’s argument that they could not be subject to sales tax under the U.S. Supreme Court decision McLeod v. J.E. Dilworth Co.

Supreme Judicial Court of Massachusetts Issues Ruling on Cookie Nexus

The Supreme Judicial Court of Massachusetts has issued a ruling in favor of the taxpayer in relation to a state rule regarding vendors making internet sales which would allow the Massachusetts Commissioner of Revenue to consider the use of cookies, apps, and content delivery networks (CDNs) while deciding whether a vendor was in or out of the State of Massachusetts.

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.