July 2021 sales tax changes
July can be a bit like the changing of the guard at Buckingham Palace: Out with the old sales tax rates and policies, in with the new. As in prior years, a great many sales and use tax changes will take effect July 1, 2021, including those listed below.
New remote sales tax requirements
Florida. Starting July 1, 2021, Florida requires certain out-of-state sellers and marketplace facilitators to register with the Florida Department of Revenue then collect and remit applicable sales and use tax.
Georgia. Marketplace facilitators are liable for state and local lodging taxes in Georgia as of July 1, 2021.
Indiana. In addition to sales and use tax, registered remote sellers in Indiana are required to collect and remit applicable fireworks public safety fees, prepaid wireless service charges, and waste tire management fees on and after July 1. Remote retailers and marketplaces are also liable for Indiana’s new electronic cigarette tax.
Kansas. As of July 1, 2021, Kansas will begin enforcing an economic nexus threshold and holding certain marketplace facilitators responsible for collecting and remitting the tax due on their third-party sales (including sales of transient guest lodging). Kansas is also eliminating click-through nexus effective July 1.
New Mexico. New sourcing rules take effect in New Mexico on July 1, 2021. Registered remote sellers and marketplaces must collect applicable local taxes (e.g., city, county) at the rate in effect at the destination of the sale (i.e., the delivery address). This change also applies to direct-to-consumer beverage alcohol sales: Out-of-state wineries with economic nexus are required to collect and remit local taxes in addition to the state tax.
New rules for cross-border sellers
Businesses selling into the European Union (EU) will face new tax obligations starting July 1, 2021, due to the 2021 EU ecommerce VAT package. Among other changes, this will make a marketplace the deemed supplier liable for the tax due on all sales made through a marketplace, and also create a fast track for low value ecommerce shipments into the EU.
New sales and use tax exemptions
Florida. For one week only, July 1 through July 7, Florida is providing a full or partial sales tax exemption for numerous products and certain admissions.
Georgia. Certain admissions are sales tax exempt in Georgia from July 1, 2021, through December 31, 2022.
Louisiana. Diapers and feminine hygiene products are exempt from Louisiana sales and use tax effective July 1, 2021.
New tax rates
Sales and use tax, lodging tax, motor fuels tax, or other tax rates are changing July 1, 2021, in the following states:
- California: Additional information about new sales and use tax rates
- Georgia: Changes to the state hotel-motel fee are also taking effect
- Michigan: New prepaid sales tax rates for diesel and gasoline
- Nebraska: Motor fuels tax rate change
- North Dakota
- South Dakota
- Washington: The Hazardous Substance Tax is also increasing
- West Virginia
- Check out the Avalara blog to keep your finger on the pulse of tax changes.
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