June 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 tax compliance.

This month’s roundup marks the end of an era: In the three years since the Supreme Court of the United States issued its landmark decision in South Dakota v. Wayfair, Inc., we’ve watched one state after another enact economic nexus and marketplace facilitator laws. The last state did so on June 30, 2021. Read on for more information about that and other developments.

Taxing times

Every penny counts.

To help the struggling amusement and entertainment industries recover from COVID-19 lockdowns, Florida and Georgia are temporarily exempting certain admissions and entertainment. Learn more.

 

It’s worse than we thought.

According to a new survey, accountants believe nearly 56% of small businesses are in the “danger zone,” and that sales tax complexity is blocking growth. Learn more.

 

Lessons learned won’t soon be forgotten.

A new report from Salesforce examines changes in consumer habits, business responses, and the overall state of commerce. Learn more.

 

Settling in for the long haul.

Pennsylvania isn’t renewing its COVID-19 telework tax policy, so as of July 1, 2021, any company with an employee working remotely in the Keystone State may have an obligation to collect and remit sales tax. Learn more.

 

Taxing online sales

Marketplace sales get a boost.

Certain prepared foods are subject to a reduced rate of tax in Puerto Rico. As of May 24, 2021, marketplaces facilitating sales of those prepared foods may apply to collect that reduced rate. Learn more.

 

The last domino falls.

Three years after the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., the last holdout state has enacted a remote sales tax law. Missouri will enforce economic nexus and a marketplace facilitator collection requirement starting January 1, 2023. Learn more.

 

There’s nothing wrong with revisions.

Maine became one of the first states to enforce economic nexus on July 1, 2018, with an economic nexus threshold of $100,000 in sales or 200 transactions. Starting July 1, 2021, the 200 transactions threshold is eliminated. Learn more.

 

Wayfair decision proves beneficial during pandemic.

As the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc., turns three, states admit online sales tax collections helped them stay afloat during COVID-19 lockdowns. Learn more.

 

Nuts and bolts

Change is afoot.

Lots of policy and regulatory changes affecting sales and use tax take effect July 1, 2021. Learn more.

 

Narrowing the field.

Oklahoma lawmakers recently created a bunch of new sales and use tax exemptions, most of which will benefit specific organizations or interest groups only. Learn more.

 

Pinning high hopes on a sales tax exemption.

Most adults can carry a handgun in Tennessee without a permit starting July 1, 2021 — the same day a yearlong sales tax exemption for gun safes and gun safety devices kicks off. Learn more.

 

The pulse of trending tax policies.

During the first half of 2021, states considered whether COVID-19 tax relief measures should be extended or expire, if it would be beneficial to broaden the sales tax base, and more. Meanwhile, the European Union (EU) was preparing for sweeping changes that will affect ecommerce sellers and marketplaces. Learn more

 

News beyond the border

Jumping on the marketplace wagon.

Starting July 1, 2021, marketplace facilitators are the deemed supplier responsible for the value-added tax (VAT) due on third-party sales in the EU. Learn more.

 

Not a bad option.

A new fast track for low-value imports into the EU is open for business starting July 1, 2021. The Import One-Stop Shop (IOSS) facilitates the collection, declaration, and payment of VAT on shipments valued less than €150. The catch? Sellers using the IOSS must collect VAT at the point of sale. Learn more.

 

News from the tap

Beverage alcohol drinks can be quarantined, too.

Companies selling alcohol directly to consumers are generally subject to a host of regulations, and mistakes can be costly. Learn more.

 

Fulfillment houses face new obligations.

A new law in Kansas creates new licensing requirements for fulfillment houses operating in the state. It also changes the filing frequency for wineries and relaxes several rules regarding retail sales of alcohol. Learn more.

 

Marketplace laws and home delivery complicate compliance for beverage alcohol sellers.

Alcohol sales through online marketplaces and home delivery apps grew during the COVID-19 pandemic. As a result, more responsibilities are falling on marketplaces that generally aren’t licensed to sell alcohol, and more suppliers are acting as retailers and third-party providers. Regulators are working to lay the ground rules for these evolving practices. Learn more.

 

Wacky tax roundup

How confusing is Illinois sales and use tax?

Illinois sales and use tax regulations and requirements are so confusing that, for a time, both marketplace facilitators and their third-party sellers may have had to collect tax on the same transactions. Learn more.

 

Check out Avalara’s Resource center for more helpful information.

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