October 2018 sales tax changes

October 2018 sales tax changes

Sales and use tax changes take effect in numerous states on October 1, 2018: new local rates, new exemptions, new taxes on software as a service (SaaS), and more. Yet, perhaps the most notable change of all pertains to remote sellers, those with no physical presence in a state.

New tax requirements for out-of-state sellers

Under economic nexus policies, remote retailers with no physical presence in a state are required to collect and remit sales and use tax because of their economic activity in the state. No physical presence is needed.

On October 1, 2018 — Nexus Monday — economic nexus takes effect in 10 states: Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Dakota, Washington, and Wisconsin. 

New sales tax exemptions

Tampons in Washington, D.C.

New sales tax rates

New software taxes

New surcharge on prearranged rides (e.g., Uber, Lyft)

Sales tax software can help businesses of all sizes in all states manage sales tax more efficiently. Learn more.

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