March 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.
The March 2019 roundup is considerably shorter than February’s, but it still packs a punch. Here are some of the most notable sales tax changes that could impact your sales tax compliance.
California is on track to tax remote sales starting April 1.
Out-of-state sellers with more than $100,000 in sales or at least 200 transactions in California are required to collect and remit California sales tax starting April 1, 2019, when additional requirements for in-state sellers also take effect. However, a measure that would change the economic nexus threshold to $500,000 and require marketplace facilitators to collect tax on behalf of their sellers is making its way through the legislature. Learn more.
Certain remote sales of digital products subject to tax in Pennsylvania starting April 1.
Marketplace facilitators have been required to either collect tax on their Pennsylvania sales or comply with non-collecting seller use tax reporting requirements since March 1, 2018 — except on their sales of digital products. Those must also be taxed as of April 1, 2019. Learn more.
Idaho considers new tax on remote sales.
Click-through nexus is already in effect in Idaho, but like many other states, Idaho lawmakers are considering economic nexus and a collection requirement for marketplace facilitators. Learn more.
Nebraska requires marketplace providers to collect tax on marketplace sales.
Nebraska has turned its economic nexus rule into law and imposed a sales tax collection obligation on marketplace facilitators as of April 1, 2019. Learn more.
Proposed tax on remote sales in Kansas was in the wrong place at the wrong time.
A tax bill that included a remote sales tax provision was vetoed by the governor of Kansas. She said other tax changes included in the measure would have threatened the economic recovery of the state. Learn more.
Virginia taxes remote sellers and marketplace facilitators.
Virginia has adopted economic nexus and a requirement for marketplace facilitators to collect tax on behalf of their sellers. It’s also taken steps to simplify remote seller sales tax compliance. Learn more.
Washington simplifies remote seller sales tax law.
In what may be turning into a new trend, Washington has removed the transaction threshold in its economic nexus law. It’s also eliminated click-through nexus and use tax reporting requirements for non-collecting sellers. Learn more.
Sales tax automation can help you comply with all the above changes. Learn more.
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