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:

  • Check out the Avalara blog to keep your finger on the pulse of tax changes.
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