February 2021 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.

Lawmakers and tax officials were busy in February 2021. As Florida and Missouri edge closer to adopting economic nexus and marketplace facilitator laws, Nevada and Pennsylvania are encouraging remote sellers to comply with existing laws through tax amnesty and voluntary disclosure programs. Read on for a snapshot of these and other developments.

 

COVID-19 tax relief roundup.

A number of states are offering new limited relief programs for businesses adversely affected by the COVID-19 pandemic. Learn more.

 

Economic nexus and marketplace facilitator laws looking likely in Missouri.

Several bills making their way through the Missouri Legislature would establish an economic nexus law and require marketplace facilitators to collect and remit tax on behalf of third-party providers. House Bill 554 is unique because of its local use tax twist. Learn more.

 

Maryland enacts groundbreaking tax on digital advertising services.

Maryland is the first of the United States to adopt a digital advertising tax. Other states are interested in following its lead — even as businesses prepare to challenge the tax. Learn more.

 

Remote sellers can stop counting Wisconsin transactions.

Wisconsin has eliminated its economic nexus transactions threshold. Effective February 20, 2021, remote sellers that have more than 200 transactions in the state are required to register to collect and remit Wisconsin sales tax only if they meet the $100,000 in sales threshold. Learn more.

 

Sales tax rates can change when you cross the street.

Knowing which rate to apply to each transaction is one of the biggest challenges facing online sellers. For businesses with customers nationwide, having the ability to generate sales tax rates with rooftop-level precision is essential. Learn more.

 

Sales tax rates, they are a-changin’.

There are almost always at least a few state or local sales tax rate changes at the start of each month. Learn more.

 

Sales tax software eases the burden of compliance.

Several small business owners who testified in favor of Florida economic nexus legislation said it’s not hard to collect out-of-state taxes when you use sales tax software like Avalara. Learn more.

 

States offer delinquent taxpayers a helping hand

Nevada offering a tax amnesty program.

The Nevada Department of Taxation will waive monetary penalties and interest for eligible taxpayers who pay all outstanding assessments, fees, and taxes during the amnesty period. Learn more.

 

Window opens for unregistered remote sellers with inventory in Pennsylvania.

The Pennsylvania Department of Revenue is currently running a 90-day voluntary compliance program for unregistered out-of-state businesses with inventory in the Commonwealth. Learn more.

 

News from the tap

Alcohol Marketplaces 2.0

Part 1 of our new Alcohol Marketplaces 2.0 series examines how long-standing California regulations regarding online alcohol sales by third-party providers (TPPs) intersect with new marketplace facilitator laws. Learn more.

Alcohol Marketplaces 2.0 Part 2 delves deeper, exploring how California has addressed the conflict between marketplace facilitator and alcohol laws to date. Learn more.

 

COVID-19 creates new opportunities — and challenges — for alcohol delivery marketplaces.

Relaxed regulations arising from the pandemic afford new opportunities for alcohol marketplaces and third-party delivery services, but they come with growing pains. Learn more.

 

Et tu, New Hampshire?

The Live Free or Die State is famously opposed to letting other states impose a sales tax obligation on New Hampshire sellers. Nonetheless, New Hampshire imposes a “fee” on direct-to-consumer alcohol shipments by out-of-state sellers. Learn more.

 

Tennessee wine afficionados: Fill your cellars now.

A bill under consideration in Tennessee would make it illegal for fulfillment houses in the U.S. to ship wine directly to Tennessee consumers on behalf of licensed wineries. Elimination of this standard practice would impact many wineries and greatly reduce wine options in the state. Learn more.

 

News beyond the border

Cross-border sellers face compliance hurdles in Mexico and the U/conited Kingdom.

New HS codes and requirements for ecommerce sellers are complicating international tax compliance for companies that sell to customers in Mexico and the U.K. Learn more.

 

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

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