October 2018 sales tax changes
- Sales and Use Tax
- October 1, 2018 | Gail Cole
Sales and use tax changes take effect in numerous states on October 1, 2018: new local rates, new exemptions, new taxes on software as a service (SaaS), and more. Yet, perhaps the most notable change of all pertains to remote sellers, those with no physical presence in a state.
New tax requirements for out-of-state sellers
Under economic nexus policies, remote retailers with no physical presence in a state are required to collect and remit sales and use tax because of their economic activity in the state. No physical presence is needed.
On October 1, 2018 — Nexus Monday — economic nexus takes effect in 10 states: Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Dakota, Washington, and Wisconsin.
New sales tax exemptions
Tampons in Washington, D.C.
New sales tax rates
- Washington, D.C.
New software taxes
New surcharge on prearranged rides (e.g., Uber, Lyft)
Sales tax software can help businesses of all sizes in all states manage sales tax more efficiently. Learn more.