Since the South Dakota v. Wayfair ruling over six months ago, companies have been waiting to see how New York (the fourth most populated state) would handle the new rules for remote sellers. Tax advisors assumed New York was taking their time in creating the right formula, however, this may not have been the case.
Author Archives: PM Business Advisors
On Tuesday the California Department of Tax and Fee Administration announced that beginning April 1, 2019, California will require out-of-state retailers to collect and remit use tax if they have $100,000 in sales or 200 transactions. The $100,000 threshold is far from the $500,000 threshold discussed back in August 2018 through draft legislation. In addition,
While CPAs have been enjoying their summer taking long vacations, states have been very busy at work asserting their positions regarding the impact of South Dakota v. Wayfair. Many professionals assumed that since the majority of state legislatures have adjourned for 2018 that we would not get significant guidance from states, but that has not
On August 2, Michigan released a Revenue Administrative Bulletin (RAB 2018-16) that addresses sales & use tax nexus standards for remote sellers. Most of the language is cookie cutter with other state releases such as creating a threshold of $100,000 in sales or 200 transactions. However, unlike many other states Michigan clearly addresses several key
Maryland is now the most recent state to issue a Tax Alert regarding South Dakota V Wayfair, and it’s the vaguest guidance issued to date by any state. Although Maryland did consider both affiliate and click-through nexus statutes in the past, before Wayfair, Maryland was a physical presence state. In the Tax Alert issued this
Within 24 hours of Alabama’s announcement regarding its enforcement date of 10/1/2018 regarding its economic nexus law, Wisconsin became the first state without an economic nexus law to announce that they will apply the SD v. Wayfair decision by rule. “New standards for administering sales tax laws on remote sellers will be developed by rule.
Remote sellers received some clarity from Alabama today regarding its existing economic nexus and marketplace facilitator rules. Although remote sellers are not happy about the decision by the Supreme Court in SD v Wayfair, this announcement helps clear up confusion and concern that has existed since the ruling regarding states like Alabama that had economic
If 2014 and 2015 were the years of click-through and affiliate nexus legislation, 2016 and 2017 will usher in a new era for remote seller reporting requirements and economic nexus challenges. During 2016 Louisiana was the only state to enact new legislation covering both click-through and affiliate nexus. This brings the total states that have
South Dakota v. Wayfair: Supreme Court Ruling on Collecting Sales Tax from Remote Sellers & Online Retailers
For the past three months, the Supreme Court has been listening to arguments regarding South Dakota v. Wayfair, Inc. On Thursday, June 21st, 2018 the Supreme court ruled in favor of South Dakota allowing states to collect sales tax from online retailers, effectively reversing a decision the Court made in 1992. In North Dakota v. Quill Corp., 504 U.S.