May Roundup: Sales tax laws you need to know
- Sales and Use Tax
- May 31, 2019 | Gail Cole
While you focus on your business, we stay on top of legislative and policy changes that can affect your sales tax compliance.
Legislatures in California, New York, and a handful of other states are still in session, but lawmakers in most states are taking a bit of a break. Before they wrapped up, they took care of business. Here are some of the most notable recent sales tax changes that could impact your sales and use tax compliance.
Arizona adopts economic nexus.
Starting October 1, 2019, certain remote sellers will have to remit transaction privilege tax in the Grand Canyon State. Marketplace facilitators will also be responsible for the tax on sales made through the marketplace. Learn more.
Colorado simplifies sales tax compliance for sellers.
It’s official: Economic nexus takes effect in the Centennial State on June 1, 2019; marketplace facilitators must collect and remit tax on all marketplace sales starting October 1, 2019; and remote sellers will have to use destination sourcing to determine sales tax rates. Learn more.
Florida will have two sales tax holidays in 2019.
The Sunshine State will host a disaster-preparedness sales tax holiday starting May 31, 2019 (surprise!), and there will be a tax-free period for clothing, computers, and school supplies in August. Learn more.
Georgia to require more remote sellers to collect sales tax.
More out-of-state businesses selling into the Peach State will be required to collect and remit sales tax starting January 1, 2020. Learn more.
Indiana makes marketplace facilitators responsible for sales tax.
Marketplaces facilitators will have to collect and remit tax on all sales made through the marketplace in the Hoosier State starting July 1, 2019. Learn more.
Iowa eliminates economic nexus for the smallest sellers.
The Hawkeye State has removed its transaction threshold; economic nexus is now based solely on a remote seller’s gross revenue in the state. Learn more.
Oklahoma adds economic nexus, keeps non-collecting seller use tax reporting.
A new economic nexus law in the Sooner State requires certain remote sellers to collect sales tax starting November 1, 2019. However, marketplace facilitators can still opt out of collection by complying with notice and reporting requirements. Learn more.
Tennessee to enforce 2017 economic nexus rule.
The Tennessee Department of Revenue adopted one of the nation’s first economic nexus rules back in 2017, but lawmakers forbade the department from enforcing it. A new law removes the block starting July 1, 2019. Learn more.
Texas requires marketplace facilitators to collect sales tax on behalf of sellers.
Like many other states, the Lone Star State will soon require marketplace providers to collect and remit tax on all marketplace sales. Remote sellers will be able to collect a single rate for all Texas sales. Learn more.
U.S. Supreme Court ruling will make it harder for New Hampshire businesses to fight remote sales tax laws.
A new ruling by the Supreme Court of the United States will likely make it harder for a business in one state to challenge another state’s remote sales tax laws. Learn more.
Will every state soon tax remote sales?
States that don’t have economic nexus are in the minority. Learn more.
Sales tax automation can help you comply with all the changes detailed above. Learn more.