July Roundup: Sales tax laws you need to know
- Jul 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.
Summer is in full swing, but sales tax changes aren’t slowing down.
Connecticut makes slew of sales tax changes.
New requirements for remote sellers, a new tax on digital goods, a new fee on single-use plastic bags, and a higher fee on transportation network companies (e.g., Lyft and Uber) are among the sales tax changes taking effect in Connecticut. Learn more.
Kansas lets slip it will enforce economic nexus.
Kansas is one of three states (along with Florida and Missouri) that doesn’t have an economic nexus law or rule. The word on the street is that the Kansas Department of Revenue will soon announce plans to enforce economic nexus as of October 1, 2019. Learn more.
Massachusetts adopts South Dakota–style economic nexus.
A Department of Revenue rule compelling certain out-of-state internet vendors to collect and remit Massachusetts sales tax has been in effect since September 2017, long before the Supreme Court of the United States overruled the physical presence rule in South Dakota v. Wayfair, Inc. (June 21, 2018). But soon the Bay State will enforce South Dakota–style economic nexus and require marketplace facilitators to collect tax on third-party sales. Learn more.
More states tell tax departments to set up a Certified Service Provider (CSP) program.
The 24 Streamlined Sales Tax (SST) member states have long offered a CSP program to reduce the cost and complexity of sales tax compliance for certain remote sellers. At least three other states are looking to establish their own CSP programs, and one already has. Learn more.
New Hampshire has businesses’ backs.
Tax authorities from other states can’t simply slap a sales tax collection obligation on New Hampshire retailers; they’re ask needs to be vetted by the New Hampshire Department of Justice. Learn more.
Ohio swaps cookie nexus for economic nexus.
Like Massachusetts, Ohio has had a cookie nexus law on the books since before the Supreme Court ruling in South Dakota v. Wayfair, Inc. But starting August 1, 2019, the cookie nexus law is out, and South Dakota–style economic nexus is in, along with other remote sales tax changes. Learn more.
Summer sales tax holidays!
More than a dozen states provide a sales tax holiday in August. What does that mean for retailers? Learn more.
Tampons will soon be exempt in Rhode Island, but digital products will be taxable.
Taxability rules in the Ocean State are in flux. Learn more.
Two more states allow businesses to absorb sales tax.
It’s against the law in many states for a retailer to pay sales tax itself rather than pass it on to customers. Pennsylvania now allows that, and Texas soon will too. Learn more.
Washington, D.C., finally exempts diapers and tampons, increases tax on soft drinks.
Soft drinks will be subject to a higher rate of sales tax in the nation’s capital come October 1, 2019, when a sales tax exemption for diapers and feminine hygiene products that’s been in the wings for almost three years will at last take effect. Learn more.
Wisconsin requires marketplaces to collect and remit tax on third-party sales.
Marketplaces are or will soon be responsible for collecting and remitting the tax due on third-party sales in more than 35 states, including Wisconsin. Learn more.
Automating sales tax compliance helps you account for these and other changes. Learn more.