May Roundup: Sales tax laws you need to know

May 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.

States are continuing to monitor and respond to the new coronavirus (COVID-19), but they're also taking care of other business. Some of it involves sales and other transaction taxes. Read on to learn more.

COVID-19 sales tax relief winding down.

Sales tax relief in several states expired during the month of May. Yet a few states, including Michigan, have extended it. Learn more.

 

Five states step closer to making marketplaces responsible for sales tax.

Only five states with a general sales tax don’t require marketplace facilitators to collect and remit sales tax on behalf of third-party sellers. All are looking to change that. Learn more.

 

How to tax a virtual haircut.

Unable to give in-person haircuts because of COVID-19, some stylists have started virtually “cutting” hair. Do they have to tax those sales? Learn more.

 

Louisiana considers suspending taxation because of COVID-19.

Some lawmakers in the Pelican State are calling for the suspension of certain taxes to ease the burden on businesses. Learn more.

 

Louisiana may make marketplaces responsible for more than sales tax.

In addition to holding marketplace facilitators liable for the tax on marketplace sales, Louisiana may require them to do more to stop sales of counterfeit products. Learn more.

 

Louisiana to start enforcing economic nexus.

More news out of Louisiana: An economic nexus law has been on the books for more than two years, but it’s never been enforced. That will change July 1, 2020. Learn more.

 

Puerto Rico holds marketplaces liable for tax on marketplace sales.

Like most states, Puerto Rico is requiring marketplace facilitators to collect and remit sales tax on behalf of third-party sellers. Learn more.

 

Sales tax rate changes.

On June 1, 2020, local sales tax rate changes take effect in several states. Learn more.

 

Washington exempts feminine hygiene products.

Just before adjourning on March 12, the Washington Legislature approved a measure “providing tax relief for females.” Learn more.

 

Virtual B2B events could create new sales tax obligations.

New tax obligations could be created when in-person events transition to online events. Learn more.

 

Our free sales tax risk assessment tool helps businesses uncover potential sales tax collection obligations.

Beyond sales tax

Communications and streaming taxes could apply to online and virtual activities.

Streaming taxes can apply to more than just movies and other entertainment. Interactive home exercise equipment, telehealth services, and virtual yoga classes could have communications tax implications. Learn more.

 

Communications tax implications of remote work technology.

Collaboration platforms and video conferencing services have helped companies conduct business as (mostly) usual during the pandemic. Are they also creating new tax obligations? Learn more.

 

New guidelines for virtual tasting samples.

California has issued new guidance regarding the virtual wine tastings that have replaced in-person tasting in recent months. Learn more.

 

New York may authorize direct intrastate and interstate liquor shipments.

A bill under consideration in New York would allow distilleries to ship up to 36 cases a year directly to consumers. Learn more.

 

Working from home could impact income tax nexus.

Businesses with employees working from home in other cities and states may develop new income tax obligations. Learn more.

 

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