State Nexus Updates
Three Ways to Prepare for the Biggest Cyber Monday Ever
With the ever-growing preference for shopping online, Cyber Monday has shown continual overall revenue growth and this year is slated as the biggest yet. While retailers in the eCommerce space are already working out how to entice shoppers to spend with them this...
Showdown on the Prairie – Kansas AG Invalidates DOR Economic Nexus Pronouncement
In a startling development that appears intertwined with local Kansas politics, Attorney General Derek Schmidt issued an opinion that attempts to place a temporary halt to the Department of Revenue’s (DOR) plan to extend its sales tax compliance requirements to remote...
Massachusetts Budget Includes Economic Nexus and Marketplace Liability Rules
Massachusetts Governor Charlie Baker recently signed the 2020 Fiscal Year Budget which includes statutory language establishing a new economic nexus rule effective October 1, 2019. This new law replaces their existing “cookie nexus” standard with requirements...
North Carolina Passes Bill Expanding Sales Tax on Digital Goods
[July 30, 2019] North Carolina has approved a bill that expands sales tax on digital property by eliminating the requirement that an item have a taxable, tangible corollary in order to be taxable. The bill, which goes into effect October 1, 2019, defines “certain...
South Dakota v. Wayfair One Year Later – Sales Tax Retrospective and Look Ahead Q&A
On July 25th, Chuck Maniace, vice president of regulatory analysis and design at Sovos, hosted a replay of the “South Dakota v. Wayfair One Year Later” webinar on regulatory updates since the groundbreaking decision last June. Thanks to all those who participated, we...
Ohio Department of Taxation Clarifies Effective Dates for Marketplace Legislation
On July 23, 2019, the Ohio Department of Taxation released a tax alert clarifying and detailing the sales tax and nexus implications for marketplace facilitators, based on the recent passing of Ohio H.B. 166. As previously reported by Sovos, H.B. 166 obligates...
Economic Nexus Comes to Kansas After All
Non-Kansans, it is time to collect in the Sunflower State! Earlier this year, it looked as if Kansas was going to buck the national trend of establishing economic nexus for remote sellers when the Governor vetoed House Bill 2033, which outlined when a remote seller...
South Dakota v. Wayfair One Year Later Webinar Questions Answered
Thank you all who joined Sovos' webinar on June 27, “South Dakota v. Wayfair One Year Later – Sales Tax Retrospective and Look Ahead,” and submitted the following questions during the Q&A portion. They really put our regulatory analysis team to the test, and we...
Louisiana Ready to Tax Remote Commerce – Are You Ready to Collect?
While Louisiana is one of the few states (as of today) that does not actively require out-of-state vendors to collect their sales tax, it’s not for lack of effort or forethought. Louisiana has been thinking about taxing remote commerce for a few years and now, they...
Marketplace Sales Tax Collection Rules and Current State of Affairs
Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and Walmart. These online marketplaces and the rules being introduced to compel marketplace tax...
Colorado Economic Nexus Law Change for Remote Sellers
In December 2018, the state of Colorado made substantial changes impacting the sales tax collection and remittance requirements imposed on both in-state and remote sellers. The state extended a grace period for companies to comply with these requirements through May...
Is Sales Tax Economic Nexus Simplification on the Horizon?
A topic of conversation on the recent Sovos and Deloitte Tax LLC webinar, “The Speed of Sales Tax – How to Stay Ahead of Changing Regulations in 2019,” was whether or not states will seek further economic nexus simplification. State of sales tax economic nexus...
Staying Ahead of Changing Sales Tax Regulations and Economic Nexus
On March 21, Sovos and Deloitte Tax LLP teamed up on a webinar, “The Speed of Sales Tax – How to Stay Ahead of Changing Regulations in 2019,” discussing trends in sales tax compliance that will impact tax professionals’ day-to-day processes and work. Below is a brief...
Marketplace Facilitators and Payment Processors – The New Taxpayers?
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...
How IT Can Reduce the Burden of Wayfair Economic Nexus Sales Tax Rules
The Supreme Court’s decision in South Dakota v Wayfair no longer limits states to the “physical presence” standard previously required to impose tax collection and remittance responsibility on a business. The new state nexus standards now look to criteria other than...
New York Implements Economic Nexus by Resuscitating 1980’s Law
When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they...
4 Big Post-Wayfair State Sales Tax Developments to Watch 2019
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten...
Sales Tax Roundup: California to Tax eCommerce, 2018 Online Holiday Shopping Exceeds $80B, and Why You Need SEO Today
This is the last Taxify Roundup in 2018, and what a year it has been! eCommerce continues to be the powerhouse of the retail economy, scooping up more markets and expanding to even higher valuations ($1 trillion valuation for Amazon!). At the same time, regulatory...
Cyber Week Generates Unprecedented Revenue – and Sales Tax Challenges – for eCommerce Sellers
Over the past several years, traditionally strong Black Friday sales have begun to flatline as more consumers have taken to holding out for online deals on Cyber Monday. While this may not be a welcome trend among retailers that focus primarily on...
California Announces Economic Nexus Rules for Remote Sellers
Ever since the Wayfair ruling by the Supreme Court in June 2018 opened up the ability for states to impose sales tax liability on remote sellers, states have been leaping into the “economic nexus” pool like a series of synchronized divers. And on December...
Sales Tax Roundup: States Plan to Permit Local Jurisdictions to Set Tax Rates, Card Skimming Scams Come to eCommerce, and Why You Need to Streamline Checkouts
Some major retail shopping days — Black Friday, Small Business Saturday, Cyber Monday — are now behind us, but the 2018 holiday shopping season will continue apace. All indications are that this is going to be a banner year, particularly for online...