The March 2019 sales tax laws roundup packs a punch, as the results of the June 2018 Wayfair decision continue to take effect.
Here are some of the most notable sales tax changes, and the states in which they apply, that could impact sales tax compliance for your retail clients.
As of April 1, out-of-state sellers with more than $100,000 in sales or at least 200 transactions in California are required to collect and remit California sales tax as additional requirements for in-state sellers also took effect. However, a measure that would change the economic nexus threshold to $500,000 and require marketplace facilitators to collect tax on behalf of their sellers is making its way through the legislature. Learn more.
Marketplace facilitators have been required to either collect tax on their Pennsylvania sales or comply with non-collecting seller use tax reporting requirements since March 1, 2018 — except on their sales of digital products. Those must also be taxed as of April 1, 2019. Learn more.
Click-through nexus is already in effect in Idaho, but like many other states, Idaho lawmakers are considering economic nexus and a collection requirement for marketplace facilitators. Learn more.
Nebraska has turned its economic nexus rule into law and imposed a sales tax collection obligation on marketplace facilitators as of April 1, 2019. Learn more.
A tax bill that included a remote sales tax provision was vetoed by the governor of Kansas. She said other tax changes included in the measure would have threatened the economic recovery of the state. Learn more.
The state has adopted economic nexus and a requirement for marketplace facilitators to collect tax on behalf of their sellers. It’s also taken steps to simplify remote seller sales tax compliance. Learn more.
In what may be turning into a new trend, Washington has removed the transaction threshold in its economic nexus law. It’s also eliminated click-through nexus and use tax reporting requirements for non-collecting sellers. Learn more.
Gail Cole is a Senior Writer at Avalara. She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals — or anyone interested in learning about tax compliance.