January 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.

Sales tax highlights from January 2021 include new tax relief for businesses impacted by COVID-19 and renewed efforts to tax remote sales in Florida. Read on for more details.

California provides sales tax payment plan for small businesses.

For a limited time, California taxpayers with less than $5 million in annual taxable sales are eligible for a 12-month, interest-free payment plan for up to $50,000 of sales and use tax liability. Learn more.

Colorado clarifies that sales tax applies to Netflix.

The Colorado Department of Revenue has revised a rule to make it clear that Colorado sales tax applies to digital goods. This includes subscription fees that allow consumers to select and stream movies and television shows. Learn more.

Colorado offers more COVID-19 sales tax relief.

Bars, restaurants, and mobile food vendors in Colorado (and many other states) have been hit hard by ongoing capacity caps and mandatory closures. To help them stay solvent, Colorado’s offering qualifying businesses a special limited state sales tax deduction. Learn more.

Finance professionals share how COVID-19 is impacting revenue streams.

It’s not legislative news, but it’s interesting to see some of the challenges facing finance professionals during the time of COVID-19. Learn more.

First sales tax holidays of the year take place in February.

At least 17 states are offering sales tax holidays in 2021. Other states could decide to share in the tax-free fun later this year, as Florida often does. Learn more.

Florida tests remote sales tax legislation waters again.

Two economic nexus bills are making their way through the Florida Legislature. Both would also make marketplace facilitators liable for tax on their third-party sales. Learn more.

It’s not just about sales tax.

Our 2021 sales tax changes report now includes sections on beverage alcohol, communications, fuel, lodging, and tobacco taxes. Learn more.

Maryland gives beleaguered taxpayers more time to file and pay sales tax.

Taxpayers in Maryland now have until April 15, 2021, to file and remit certain taxes normally due in January, February, or March. Learn more.

New York still wants to tax digital advertising services.

COVID-19 has gutted New York’s coffers. Taxing digital advertising services could help replenish them. Learn more.

Physical nexus is still a thing.

Although economic nexus has been hogging headlines for the past 2.5 years, it’s still possible for an out-of-state business to establish sales tax nexus through temporary presence in a state, such as trade show attendance. Learn more.

U.K. imposes new obligations on U.S. sellers.

Although Brexit doesn’t directly impact most U.S. retailers, the new U.K. ecommerce VAT package requires ecommerce businesses selling directly to customers in the U.K. to collect VAT at the point of sale for all shipments valued ≤£135 (approximately $180, depending on the exchange rate). Learn more.

Understanding taxability rules can improve sales tax compliance.

To be sales tax compliant, knowing whether the products or services one sells are taxable or exempt is essential. Learn more.

Automating tax compliance helps businesses of all sizes navigate the changing seas of sales tax.