Monthly Roundup: Sales tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your sales tax compliance.

While December tends to be a quiet month for sales tax legislation, December 2018 was busy. Here are some of the most notable recent sales tax changes that may impact your sales and use tax compliance.

California will require out-of-state businesses to collect sales or use tax starting April 1, 2019.

A new policy adopted by the California Department of Tax and Fee Administration will impose new collection requirements on both in-state and out-of-state businesses as of April 1. Learn more.

Texas will tax remote sales starting October 1, 2019.

Out-of-state businesses with at least $500,000 in Texas sales during the preceding 12 months are required to register with the state and collect and remit Texas sales tax starting October 1. Learn more.

Washington, D.C. starts taxing sales by out-of-state businesses on January 1, 2019.

On December 31, 2018, while many folks were out reveling, the mayor of Washington, D.C. signed an emergency provision to tax remote sales starting January 1. Learn more.

Washington, D.C. to tax digital goods and services starting January 1, 2019.

In addition to taxing remote sales, the District of Columbia is now taxing sales of certain digital goods and services (e.g., ebooks, streamed movies, and music). Learn more.

Washington, D.C. to require marketplace facilitators to collect tax as of April 1, 2019.

Marketplace facilitators will have to start collecting and remitting tax on behalf of their sellers starting April 1. Learn more.

Colorado offers grace period for remote sellers that need more time.

Colorado requires remote sellers doing a certain amount of business in the state to collect and remit sales tax as of December 1, 2018. However, understanding that some companies may need additional time to make the necessary changes, the Colorado Department of Revenue is offering a grace period through May 31, 2019. Businesses are nonetheless advised to comply as soon as possible. Learn more.

Remote seller sales tax legislation introduced in at least three states.

Bills requiring remote sellers to collect and remit sales tax are queued for consideration in Arkansas, Missouri, and Virginia. Click on links to learn more.

States seek remote seller information from online marketplace providers.

A number of states have requested third-party seller information from online marketplace providers such as Amazon. The ecommerce giant has complied with the request in several states. Learn more.

Sales tax automation can help you comply with all the above changes. Learn more.