June Roundup: Sales tax laws you need to know
- Jul 1, 2020 | Gail Cole
While you focus on your business, we stay on top of legislative and policy changes that can affect your sales tax compliance.
June was a busy month for sales tax. Lawmakers and officials in some states returned to work with gusto after COVID-19-required breaks.
2020 sales tax changes midyear update.
Pandemic-inspired tax relief, the second anniversary of the seminal U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., and more: Find out what’s coming in the world of sales tax as we move into the second half of 2020. Learn more.
Chicago enforces economic nexus for wineries.
As of July 1, 2020, wine sellers with no physical presence in Chicago are required to collect and remit Chicago liquor tax on wine delivered into the city. Learn more.
COVID-19 sales tax relief winds down.
Although some states have extended sales tax relief measures, relief in many other states is now expired. Learn more.
North Carolina exempts online classes (i.e., digital education content).
The pandemic closed in-person classrooms around the nation, forcing all types of educators to move their classes online. North Carolina has made it clear that charges for such content are exempt. Learn more.
Louisiana enforces economic nexus for out-of-state wine sellers.
Like Chicago, Louisiana is requiring out-of-state wine sellers to collect and remit applicable taxes on direct shipments to consumers in the Pelican State. Learn more.
Louisiana enforces economic nexus and marketplace facilitator law.
Economic nexus in Louisiana isn’t just for out-of-state wineries. One of the first states to enact an economic nexus law, Louisiana is at last enforcing it. Learn more.
Louisiana law facilitates tax relief.
In the event there’s a need for more tax relief initiatives in the future, the Louisiana Department of Revenue is now authorized to provide it. Learn more.
Mississippi enacts marketplace facilitator law.
Mississippi is the latest state to require marketplace facilitators to collect and remit tax on behalf of third-party sellers. The change was enacted mere hours before the new requirement takes effect. Learn more.
Sales tax rate changes.
July is always a big month for local sales tax rate changes. Learn more.
Several states reduce interest rates for Q3.
Interest rates on underpaid or overpaid sales tax are trending down in several states. Learn more.
States in need of revenue look to broaden sales tax, increase enforcement.
COVID-19 is draining reserves and decreasing tax collections. To increase revenue, states will likely go after noncompliant out-of-state vendors. They may also broaden sales tax to currently exempt goods and services. Learn more.
Tax registers may have unexpected powers.
Some transactions are taxable if the sale goes through at one cash register but exempt if it goes through another. Learn more.
Tennessee creates sales tax holiday for restaurant food and drink.
Restaurants, cafés, and bars have been particularly hard hit by the pandemic. Exempting restaurant sales of food and drink during a one-time-only sales tax holiday could give them a much-needed boost. Learn more.
The internet is now free.
The Internet Tax Freedom Act became permanent on July 1, 2020, forcing a handful of states to eliminate existing taxes on internet access. Learn more.
The scoop on taxing dog poop collection services in Washington.
It must be read to be believed. Learn more.
Some people still don’t know about the Supreme Court decision in South Dakota v. Wayfair, Inc.
Although most states have required certain out-of-state sellers to collect and remit sales tax for months or years, some businesses aren’t in the know. Learn more.