March 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.

Most state legislatures were in session in March, and they were busy.

Taxing times

COVID-19 tax relief roundup.

Though some businesses are thriving in our masked reality, others are struggling. To help them, certain states are still providing tax relief programs. Learn more.

 

COVID-19 may impact state tax policies for years to come.

One year after COVID-19 first triggered mandatory business closures and stay-at-home orders, state tax policies continue to be shaped by the pandemic. Learn more.

 

Keep your mask on and wash your hands.

Virginia has created a temporary sales tax exemption for personal protective equipment, but it’s only for businesses that adhere to certain coronavirus prevention measures. Learn more

 

Taxing online sales

Florida could start taxing remote sales in July.

Lawmakers in the Sunshine State are working to approve legislation that would establish economic nexus and a marketplace facilitator sales tax collection obligation. Learn more.

 

Kansas could adopt an economic nexus threshold.

Long the outlier, Kansas may soon toe the line and create an economic nexus threshold like every other state with an economic nexus law. It will likely also require marketplace facilitators to collect and remit sales tax on behalf of their third-party sellers. Learn more.

 

There’s more than one way to tax an online sale.

Many out-of-state retailers that sell to residents of Virginia already collect and remit sales tax under the state’s economic nexus and marketplace facilitator laws. Now some lawmakers want to add an impact fee on top of the internet tax. Learn more.

 

The digital revolution

Digital products and SaaS now subject to Maryland sales tax.

In mid-February, Maryland lawmakers overrode a gubernatorial veto to establish a tax on digital products and Software as a Service (SaaS). It’s already being enforced. Learn more.

 

Georgia could tax digital goods and services.

Digital products and services including art, books, and video games could be subject to Georgia sales tax as early as July 1, 2021. Learn more.

 

Will 2021 be the year of digital advertising tax?

Maryland is the first state in the country to enact a tax on digital advertising, but it probably won’t be the last. Learn more

 

Rate changes, actual and proposed

Many local sales tax rate changes will take effect April 1.

As always, the start of a new quarter brings a slew of local sales tax rate changes. Learn more.

 

Several states consider state sales tax rate changes.

At least a couple of states are looking to increase the general state sales tax rate, and two may reduce the state sales and use tax rate on food for home consumption. Learn more.

 

News from the tap

Alcohol marketplaces follow the money.

The fact that only businesses holding a license to sell alcohol at retail can sell alcohol directly to consumers has complicated matters for unlicensed entities such as delivery apps and online marketplaces. Learn more.

 

Economic nexus posing challenges for alcohol sellers.

Direct-to-consumer (DTC) alcohol shippers often don’t understand the full impact of economic nexus laws, which can, in fact, affect their tax compliance obligations. Learn more.

 

Kentucky responds to industry concerns.

Kentucky authorized DTC shipments of beer, wine, and spirits in 2020, but not the use of fulfillment houses. It’s since enacted a law that will allow a holder of a direct shipper’s license to use a third party to fulfill alcohol shipments in the state. Learn more.

 

News beyond the border

Why shipping DDP can benefit ecommerce sellers.

Every shipping option has its pros and cons. When packages cross international borders, the shipping method can have an enormous impact on customer satisfaction. Learn more.

 

Wacky tax roundup

Do your part for the state and partake.

Legal or not, sales of recreational marijuana and psilocybin mushrooms happen. When states weigh the pros and cons of legalization, tax revenue is always a key consideration. Learn more.

How many ways are there to divide a state?

Lawmakers in at least three states have come up with plans to divide their states into two or more separate entities. In the new New York, the three proposed autonomous regions would lack the power to enact or collect regional sales tax. Learn more.

 

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

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