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Supreme Court Ruling - SD v. Wayfair - 2019
2018-06-21 SCOTUS - SD v. Wayfair - Background
In 2018 most of the states in the U.S. had laws on the books that required out of state sellers to collect and remit sales tax on sales into their states. These law were for all intents and purposes unenforceable, until June 21, 2018 that is. It was then that the Supreme Court of the United States (SCOTUS) handed down its ruling in the case of South Dakota (SD) v. Wayfair. That ruling opened the door to legitimize these laws, though they needed to be adjusted to conform to those of South Dakota so as to be enforceable under the precedent set by SD v. Wayfair. In South Dakota Statute 10-64, section 2 defines a small business exclusion. It specifies that compliance with South Dakota sales tax laws would apply to an out of state seller only if in the previous calendar year:
That exclusion was critical to the court's decision. In the past, the Supreme Court resisted adding the burden of computing, collecting, and remitting sales taxes to the thousands of tax jurisdictions across the country. However, it was noted that systems capable of automating this task were becoming more available and affordable. Still the cost for software and administration would be prohibitive for small businesses, so the small business exclusion was directly referenced in the opinion and has become a provision in most every state's sales tax statutes. This post summarizes the statutory requirements for each of the states as they are now at the beginning of 2019. And as the year progresses, we will update the post with the changes that are sure to be coming. Those changes will undoubtedly be with the intent to expand the tax base beyond the current criteria. Also, SD v. Wayfair may encourge the U.S. Congress to move on the Marketplace Fairness Act. And the Streamlined Sales and Use Tax Agreement (SSUTA) will certainly promote their model for interstate sales tax processing. So, without a doubt, 2019 will be interesting. At iPgmr.com we are committed to providing the most cost effective sales tax processing available anywhere. In addition to our iSeries based tax calculator, we offer cloud based services and other customized private tax processing services. If you have a need, please let us know what it is and we likely have a solution that will suit your needs and budget. Our contact information can be found at www.ipgmr.com/contact.htm. To look up a sales tax rate, go to iPgmr.com > Sales Tax Calculator.
Alabama
Alaska
Arizona
Arkansas
Alabama TopIn addition to the general sales tax, Alabama also has separate rates for vehicles, manufacturing equipment, farm equipment, and entertainment. In addition there are city, county and jurisdictional taxes. Remittances are made for some to the state, for some to RDS (Revenue Discovery Systems), and some to the governing authority. This link provides information for remote sellers in light of the SCOTUS ruling of SD v. Wayfair. https://revenue.alabama.gov/2018/07/03/ador-announces-sales-and-use-tax-guidance-for-online-sellers It should be noted that these regulations are "prospective" or expected of the seller. It also stipulates that third party sellers with more than $250,000 of in state sales must collect and remit sales taxes on all sales.
Alaska TopAlaska has no state sales tax. However, there are a number of local sales taxes levied at the city and borough (county) level. Without any statewide administration and collection services, there is little ability to enforce local tax collections on out of state sellers.
Arizona TopArizona does not have a sales tax. However, the state does have Transaction Privilege Tax (TPT). TPT is a tax on the vendor for the privilege of doing business in the state. Though the tax actually falls on the vendor, it is applied exactly the same as a sales tax. There is even a TPT use tax for residents making out of state purchases of goods used or consumed in Arizona. To date there is nothing specific regarding out of state sellers responsibility for collecting and remitting TPT. This link provides a checklist to determine if a seller is liable for the TPT. https://www.azcommerce.com/small-business/small-business-checklist 10/01/2019 - A threshold have been set for remote sellers required to collect and remit TPT at $200,000 in annual sales for tax year 2019, $150,000 for 2020, and $100,000 for 2021 and thereafter.
Arkansas SSUTA TopThe Arkansas Department of Finance and Administration (DFA) administers and enforces the collection of sales taxes for all jurisdictions in the state. The link https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/remote-sellers makes it clear they will depend on the Streamlined Sales Tax System for all sales into the state.
California TopThe California Board of Equalization (BOE) administers and enforces the collection of sales taxes for all jurisdictions in the state. The link https://www.boe.ca.gov/formspubs/pub77 provides the information for out of state sellers. It defines what it means to be "engaged in business" in California and therefore required to register with and comply with the commrece laws of state. It is noteworthy that the tab "Not Required to Register" specifically identifies out of state internet retailers as exempt from collecting and remitting sales tax. However, one could still be identified having an "affiliate nexus" if you sell through or receive referrals from a California based entity.
Colorado TopRegulations requiring out of state sellers to collect and remit Colorado sales taxes following the SCOTUS ruling were made effective December 1, 2018. The link https://www.colorado.gov/pacific/tax/information-out-state-retailers provides the information needed to determine if the statutes are applicable in your particular situation. The FAQ, "Who must apply?" provides the qualifying factors used to determine compliance. They are: 1. $100,000 or more in gross sales or services 2. 200 or more transactions of tangible personal property or services If either condition exists in the current or previous calendar year, compliance is required.
Connecticut TopOn June 15, 2018 Govenor Dannel Mallory signed Act 18-152 that requires marketplace facilitators and online retailers to collect and remit sales tax if their gross sales exceed $250,000 or they have over 200 transactions in Connecticut in a given year. Since Connecticut has no local sales tax, compliance is relatively simple. A search of the Connecticut Department of Revenue web site, https://portal.ct.gov/DRS/Businesses/Business-Tax-Page/Sales-Tax-Information, for out of state sellers does not link to any pertinent information at this time.
Delaware TopDelaware does not have a sales tax. There is a gross receipts tax imposed on sellers for receipts in excess of $100,000 each month.
District of Columbia TopDistrict of Columbia Office of Tax and Revenue (OTR) has no specific information regarding SD v. Wayfair and out of state sellers. The OTR web site https://cfo.dc.gov/page/tax-rates-and-revenues-sales-and-use-taxes-alcoholic-beverage-taxes-and-tobacco-taxes states, "All tangible personal property and certain selected services sold or rented at retail to businesses or individuals delivered in the District are subject to sales tax." So the expectation of tax compliance by out of state sellers is without question.
Florida TopFlorida state law requires a business to be physically located in the state before it is required to register to collect sales tax. That will likely change with the next legislative session beginning March 2019. http://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx is the link to the Florida Department of Revenue Sales Tax Information Page.
Georgia SSUTA TopAt the present the only reference to an out of state seller by the Georgia Department of Revenue is in regards to vendors entering into a contract with a state agency in excess of $100,000. https://dor.georgia.gov/out-state-sellers can be monitored for changes in the coming months.
Hawaii TopOn July 1, 2018 Act 41 (S.B. 2514) became effective. That act requires out of state sellers whose gross sales exceed $100,000 or that have over 200 transactions in Hawaii in the current or previous year to register as a Hawaii business and comply with state sales tax regulations. The web site http://tax.hawaii.gov/geninfo/get currently provides no information regarding out of state sellers.
Idaho TopEffective July 1, 2018 the State of Idaho set into law the responsibility of an out of state seller to collect and remit sales tax for sales made to customers in Idaho. The law specifies two qualifying factors: 1. The seller has an agreement with an Idaho retailer to refer potential buyers for a commission. 2. Total sales through these agreement exceed $10,000 in the previous 12 months. Qualifying referrals can include a link on a web site, a written or oral presentation, or any third-party purchase opportunity. https://tax.idaho.gov/n-feed.cfm?idd=4199 can be monitored for additional information and future updates.
Illinois TopIllinois Public Act 100-587 requires remote sellers who have sold either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions to register and remit Illinois Use Tax for sales made on or after October 1, 2018. Remote sellers should visit tax.illinois.gov for specific details and available resources on the new law.
Indiana SSUTA TopIndiana satute IC 6-2.5-2-1(c) requires out of state sellers to obtain a registered retail merchant's certificate and begin sales tax collections if: 1. The seller has gross revenues in excess of $100,000 on sales into Indiana 2. The seller has more than 200 separate transactions into Indiana. The Indiana Department of Revenue began enforcing the law as of October 1, 2018. Remote sellers should visit https://www.in.gov/dor/6367.htm for additional information and future updates.
Iowa SSUTA TopJanuary 1, 2019 Senate File 2417 (SF 2417) went into effect to modernize and expand the types of businesses required to collect and remit Iowa sales taxes. Generally, a remote seller is someone who makes a sale into Iowa but has no physical presence in the state. An exemption exists for small sellers whose sales were less than $100,000 and had less than 200 transactions into Iowa in 2018. https://tax.iowa.gov/remote-sellers#iowasales can be monitored for additional informmation and future updates.
Kansas SSUTA TopThe booklet, "Sales Tax and Compensating Use Tax" (Pub KS-1510, rev 6-18) states as regards who must register: "If you are making retail sales or providing taxable services in Kansas, you must register and collect the tax. Out-of-state retailers that maintain a physical presence in Kansas must register. Retailers from other states selling goods in Kansas at temporary locations (i.e., craft or trade shows, fairs, etc.) or non-resident contractors performing labor services in Kansas, must also obtain a permanent registration number." Since KS-1510 was published before the decision of SD v. Wayfair, there will likely be changes coming. https://www.ksrevenue.org will need to be monitored to check for updates regarding qualifying factors and requirments for out of state sellers.
Kentucky SSUTA TopJuly 30, 2018 the Kentucky Department of Revenue updated its information regarding out of state sellers. Referring to House Bill 487, the web page says out of state sellers with 200 or more sales into the state or $100,000 or more of gross receipts from sales into the state must collect and remit sales tax on all Kentucky sales. Qualifying sellers are to register and begin remittances by October 1, 2018. See https://revenue.ky.gov/News/Pages/Kentucky-Sales-and-Use-Tax-Collections-by-Remote-Retailers-U.S.-Supreme-Court-Ruling.aspx for additional information.
Louisiana TopLouisiana has not placed its response to SD v. Wayfair into law yet, but it is working on draft legislation to define out of state sellers responsibility for the collection for sales into the state. The draft identifies a seller with more than $100,000 or more than 200 transactions. It does not specify a timeframe for these qualifiers, but likely refers to a calendar year or a 12 month period relative to the law's enactment. The draft also identifies a remote seller with more than $50,000 in sales as being required to "comply with the dual reporting requirements of LA R.S. 47:309.1". Just what that means is unclear, but should be clarified in the future. The draft can be found at http://www.revenue.louisiana.gov/LawsAndPolicies/RemoteSellersCommissionMaterials. Look for the most current Remote Sellers Information Bulletin 18-002 or anything inferring actual legislation on the matter.
Maine TopPrior to the SCOTUS decision in SD v. Wayfair the Maine Legislature enacted Title 36 M.R.S.A.,1951-B that requires a person with more than $100,000 in gross sales or over 200 transactions into Maine to collect and remit sales tax on all sales into Maine. The statute will be enforced by the Maine Revenue Services (MRS) on all sales on or after July 1, 2018. Remote sellers should visit https://www.maine.gov/revenue/salesuse/salestax/RemotesellersGuidance.html for additional information and any updates.
Maryland TopEffective October 1, 2018, out-of-state vendors must maintain records to determine whether they will be required to remit Maryland sales tax on retail sales for delivery into Maryland. Vendors will be required to register with the Comptroller of Maryland and collect and remit sales tax on all purchaes into the state of Maryland if: 1. Gross revenue from the sale of tangible personal property or taxable services delivered into Maryland exceeds $100,000 - OR - 2. Sales of tangible personal property or taxable services for delivery into Maryland in 200 or more separate transactions. IMPORTANT: For the calendar year of 2019 and subsequent years, out-of-state vendors not previously required to register with the Comptroller of Maryland are required to track all sales delivered into Maryland. More information is available at https://taxes.marylandtaxes.gov/Resource_Library/Tax_Publications/Tax_Alerts/Maryland-Wayfair-Tax%20Alert-Final-Version%209-14-2018.pdf
Massachusetts Tophttps://www.mass.gov/guides/sales-and-use-tax says, "Out-of-state vendors who meet any of the vendor definitions listed above generally have the same responsibilities as Massachusetts vendors." One of the listed factors for qualifying as a Massachusetts vendor is anyone who "Sells to Massachusetts residents or businesses and delivers, repairs or installs goods or telecommunications services within Massachusetts." Whether or not state statutes actually support such an all encompassing definition, it is how the Department of Revenue is interpreting and enforcing sales tax law. It could be argued that by that language, if delivery is made by a third party, i.e. USPS, UPS, FedEx, etc., the vendor is not the delivering agent and thus is not a vendor by definition. It would be expected that more information will be forthcoming in the near future.
Michigan SSUTA TopEffective after September 30, 2018, the Michigan Treasury will require remote sellers with sales exceeding $100,000 or more than 200 transactions with purchasers in Michigan in the previous calendar year to pay sales tax. Details of this policy change and the nexus standard for remote sellers are published in Revenue Administrative Bulletin 2018-16. Remote sellers should visit https://www.michigan.gov/taxes/0,4676,7-238-43519_43529-474288--,00.html for additional information and any updates.
Minnesota SSUTA TopFollowing the SCOTUS decision in SD v. Wayfair, the Minnesota Department of Revenue reaffirmed the state requirements for sales tax collections by remote sellers on sales into the state. Sellers are required to register and begin collecting Minnesota sales taxes no later than October 1, 2018. A small business exception exists for sellers with less than $100,000 in sales and less than 100 transaction into the state. Addition information can be found in at FAQ for Remote Sellers.
Mississippi TopThe Mississippi Department of Revenue served notice that in consideration of the SCOTUS runling in SD v. Wayfair, it would begin enforcement of the December 1, 2017 rule defining out of state sellers economic nexus with the state. The notice says, "The Department will allow online sellers to begin collection of Mississippi use tax for sales made on or after September 1, 2018 when such sellers register to collect Mississippi tax by August 31, 2018." A small seller exception exists for those whose gross sales into the state are less than $250,000 in the previous 12 months. The full text of the notice can be found at https://www.dor.ms.gov/Business/Documents/Online%20Seller%20Guidance.pdf .
Missouri TopMissouri sales tax law does not currently address out of state sellers making sales into the state. In view of the SCOTUS ruling in SD v. Wayfair, Govenor Mike Parson has made sales tax legislation part of his agenda for the legislative session, which begins January 9, 2019. The Missouri Department of Revenue web site at https://dor.mo.gov/business/sales/ should be monitored for notice of any stuatory changes.
Montana TopMontana has no state sales tax. However, a local option tax has been authorized for resort areas. Without any statewide administration and collection services, there is little ability to enforce local tax collections on out of state sellers.
Nebraska SSUTA TopThe Nebraska Department of Revenue has issued a guidance paper following the SCOTUS ruling in SD v. Wayfair. For out of state sellers, enforcement of Revised Nebraska Statute 77-2701.13 will begin. The guidance says, "If you are a remote seller who is also engaged in business in Nebraska as defined under Neb. Rev. Stat. 77-2701.13, you must obtain a sales tax permit on or before January 1, 2019, and must begin collecting and remitting sales tax on sales made to customers located in Nebraska." As for a small business exception, the guidance says, "To minimize the burden on interstate commerce consistent with the Wayfair opinion, the Department intends to administer the collection responsibilit consistently with the thresholds looked upon favorably by the U.S. Supreme Court in the Wayfair decision. Remote sellers are only required to register and collect Nebraska tax if they have more than $100,000 of sales into Nebraska or 200 or more separate transactions for delivery into the state annually." So the exception is a department position and is not statutory. Accordingly, the guidance encourages all sellers to register and begin remittances by January 1, 2019. The guidance paper is available at http://www.revenue.nebraska.gov/question/remote_sellers_faq.html.
Nevada SSUTA TopThe Nevada Department of Taxation has given notice that the state requires remote sellers to collect and remit Nevada sales tax effective October 1, 2018. The requirment is incumbant on any seller with more than $100,000 in gross sales or more than 200 transactions into the state in the current or previous calendar year. Others are invited to register and begin complying with Nevada law too. Full text on the FAQ is available at https://tax.nv.gov/FAQs/Remote-Sellers.
New Hampshire TopNew Hampshire is one of the few states that truly has no sales tax. There is neither a state sales tax or any local sales taxes.
New Jersey SSUTA TopNew Jersey has enacted specific legislation since the SCOTUS ruling in SD v. Wayfair that enables the state to require out of state sellers to register, collect, and remit New Jersey sales tax on sales into the state. The legislation is incumbant on the seller if gross sales into the state exceed $100,000 or if more than 200 transactions are delivered into the state during the current or prior calendar year. Enforcement of the new statutes began on November 1, 2018. Full text on the regulations is available at https://www.state.nj.us/treasury/taxation/remotesellers.shtml.
New Mexico TopNew Mexico does not have a sales tax. Rather in New Mexico sellers are subject to a Gross Receipts Tax (GRT). It is the choise of the seller to pass along the cost of the GRT to the buyer either as a separte cost or included in the selling price. The Taxation and Revenue Department (TRD) simply says that anyone who engages in business in New Mexico must register with TRD. There is no specific information as regards SD v. Wayfair. The TRD web site for GRT is http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx.
New York TopThe New York Department of Taxation and Finance (DTF) has not issued any guidance pursuant to the SCOTUS decision in SD v. Wayfair. Searching the DTF web site does not reveal any direct references to remote sellers or out of state vendors. The DTF web site for sales tax is https://www.tax.ny.gov/bus/st/stidx.htm.
North Carolina SSUTA TopOn August 7, 2018 the North Carolina Department of Revenue (NCDOR) issued a directive to out of state sellers making sales into North Carolina. The directive requires anyone with gross sales over $100,000 or with over 200 transactions in the current or previous calendar year to register, collect, and remit sales taxes to the state. Enforcement begins November 1, 2018 or 60 days after reaching one of the stated thresholds. The full text for the directive is available at https://files.nc.gov/ncdor/documents/files/sd-18-6_0.pdf.
North Dakota SSUTA TopAs the defendant in the 1992 SOCTUS case of Quill v. ND that denied states the ability to enforce sales tax regulations on out of state sellers, you can be sure that North Dakota has been waiting for this day. Enforcement begins October 1, 2018 for anyone making sales into the state. There is a small business exception for those with gross sales less than $100,000 and less than 200 transactions in the current or previous calendar year. A full run down of the North Dakota requirments can be found at https://www.nd.gov/tax/remoteseller/ .
Ohio SSUTA TopThe Ohio Department of Taxation issued a statement on June 21, 2018, immediately following the SCOTUS ruling in SD v. Wayfair. The statement is attributable to Gary Gudmundson, Communications Director, Ohio Department of Taxation, and says, "Today's decision does not have an immediate, direct impact on Ohio. The Court ruled on the laws in another state; not on Ohio's tax laws. We anticipate that we'll see some out-of-state retailers begin to voluntary charge and collect Ohio sales tax, but otherwise the sales tax rules and laws in Ohio will stay the same until the General Assembly decides whether or not to change them." The statement reflects the answer to the web site FAQ, "Should out-of-state sellers collect Ohio's use tax?" That post says, "Sellers should collect the use tax on sales they make to Ohio residents. Sellers who have nexus with Ohio are legally required to register, collect, and remit use tax, in the same way that the Ohio-based vendor collects and remits sales tax." So the official guidance depends on voluntary compliance, but does not rule out mandatory compliance for anyone currently defined as having a nexus with the state. Apparently state statutes defining what constitues a nexus in the state are not supported by SD v. Wayfair or else the statement would have been more direct. Regardless, action should be expected to address those specifics in the next legislative session. The link to the statement is https://www.tax.ohio.gov/Portals/0/communications/news_releases/Wayfairstatement.pdf. The link to the FAQ is https://www.tax.ohio.gov/sales_and_use/faqs/sales_basics/tabid/3095/Default.aspx?QuestionID=428&AFMID=9887 .
Oklahoma SSUTA TopFollowing the SCOTUS decision in SD v. Wayfair, the Oklahoma Tax Commission (OTC) issued guidance for remote sellers and marketplace facilitators. That guidance requires anyone with more than $10,000 of taxable sales in the previous 12 months into the state to file an election with the OTC and collect and remit the tax or to comply with statutory notice and reporting requirements as defined in HB 1019. The full text of the guidance is available at https://www.ok.gov/tax/documents/WAYFAIR%20DECISION%20AND%20HB%201019XX_083018.pdf .
Oregon TopOregon has neither a state sales tax nor any local sales taxes. There is only a vehicle use tax that applies to new vehicles putchased outside the state that is paid when registering the vehicle in Oregon. (Ref https://www.oregon.gov/DOR/pages/sales-tax.aspx)
Pennsylvania TopThe standing direction for out of state sellers from the Pennsylvania Department of Revenue comes from Sales and Use Tax Bulletin 2011-01, issued December 1, 2011. That bulletin puts forth three (3) qualifiers for establishing a nexus with the Commonwealth of Pennsylvania which are codified in existing law. After an analysis of case law in the matter, the bulletin issues guidance that provides seven (7) examples of what would legally constitue maintaining a place of business (i.e. nexus) in the Commonwealth and would require the seller to register and collect sales tax on sales within Pennsylvania. Since the bulletin pre-dates the SCOTUS ruling in SD v. Wayfair, legislative and directive changes will likely be forthcoming. The full text of Sales and Use Tax Bulletin 2011-01 is available at https://www.revenue.pa.gov/GeneralTaxInformation/TaxLawPoliciesBulletinsNotices/TaxBulletins/SUT/Documents/st_bulletin_2011-01.pdf .
Rhode Island SSUTA TopThe Rhode Island Department of Revenue, Division of Taxation, issued Publication 2018-06 on July 6, 2018, titled, FAQs for Non-Collecting Retailers (Remote Sellers) Following Wayfair Decision. The publication refers to Rhode Island General Law 44-18-2-2, which requires anyone with more than $100,000 in gross revenues or more than 200 transactions into Rhode Island in the previous year to either register and collect and remit taxes to the state or comply with various notice requirements in the statute. Presumedly the notification requirements would apply to exempt sellers or exempt sales. The publication is available at http://www.tax.ri.gov/notice/Remote_seller_FAQs_07_06_18.pdf.
South Carolina TopThe South Carolina Department of Revenue has provided a post SD v. Wayfair web page specifically for remote sellers. The web page reaffirms the requirement for anyone selling more than $100,000 in sales into the state in the current or previous year as having a nexus in the state. The site provides links to videos, faq's, forms, and vendor registration. https://dor.sc.gov/remotesellers is the link to the South Carolina web page for remote sellers.
South Dakota SSUTA TopAs the plantiff in SD v. Wayfair, South Dakota is in a very unique position. Its sales tax statues have been validated by the Supreme Court of the United States, and all the defendants in the case, Wayfair, Overstock, and NewEgg, are bound by the decision. So with the full support of the Supreme Court, it can now enforce its statutes on all whose sales into South Dakota meet the levels of a nexus with the state. It should then be no surprise that South Dakota has provided direction for out of state sellers. In conjunction with Codified Law of South Dakota, Chapter 10-64, anyone with sales in excess of $100,000 or more than 200 transactions in the previous or current calendar year must register and collect and remit sales tax for sales into the state. Enforcement begins November 1, 2018. Anyone making sales into South Dakota should review the information found at https://dor.sd.gov/taxes/business_taxes/Outofstateretailer.aspx.
Tennessee TopThe Tennessee Department of Revenue has issued Sales and Use Tax Notice #18-11, dated August, 2018, entitled, Sales Tax Collection by Out-of-State Dealers. The notice made reference to Notice #17-01 and #17-12, which detail Rule 129(2), which defines the exonomic nexus with the state as anyone with sales in excess of $500,000 in the previous 12 month period. However, in May 2017 the Tennessee General Assembly passed legislation that prohibits the Department from enforcing Rule 129(2) until the General Assembly reviews the Wayfair decision. So the notice encourages out of state sellers to voluntarily register with the state and begin to collect and remit sales tax as a convenience to their customers. The full text of Sales and Use Tax Notice #18-11 is available at https://www.tn.gov/content/dam/tn/revenue/documents/notices/sales/sales18-11.pdf .
Texas TopThe Comptroller of Texas web site says a seller who has more than two taxable sales in a 12-month period is required to register and collect and remit Texas sales tax. That rule is said to apply equally to both in state and out of state sellers. There are qualifiers for out of state sellers that do require a presence in the state, but also include just making a delivery in the state. Since Texas rules go above and beyond the requirements set by SD v. Wayfair, the Comptroller also posted a press release following the ruling. It said that the Comptroller's Office is in the process of reviewing possible rule changes in light of the SCOTUS ruling and is working on recommendations for the Texas Legislature, which will reconvene January, 2019. The current guidance for internet buyers and seller is found at https://comptroller.texas.gov/taxes/publications/94-171.php The press release is available at https://comptroller.texas.gov/about/media-center/news/2018/180627-wayfair.php .
Utah SSUTA TopAfter the SCOTUS ruling in SD v. Wayfair, the Utah Legislature passed SB-2001, which expands the states tax responsibilities for remote sellers. SB 2001 requires a remote seller to collect and pay Utah sales tax if, in either the previous or the current calendar year, the remote seller: 1. Receives gross revenue of more than $100,000 from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in Utah 2. Sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in Utah in 200 or more separate transactions. SB 2001 is effective for all sales occurring on or after January 1, 2019. Utah guidance for out of state sellers is available at https://tax.utah.gov/sales/remote-sellers.
Vermont SSUTA TopThe Vermont Agency of Administration, Department of Taxes, has provided its statement as regards the SCOTUS decision in SD v. Wayfair. That statement says that the ruling has made the provisions of Act 134 of 2016 effective. Act 134 requires out of state vendors with over $100,000 of sales or more than 200 transactions into the state must register and collect and remit sales tax beginning July 1, 2018. The full text is available at https://tax.vermont.gov/business-and-corp/sales-and-use-tax/wayfair.
Virginia TopThe Virginia Division of Legislative Services has issued Brief Number 60, dated July 2018, entitiled, Death of a Sales Tax Rule: Wayfair's Implications for Virginia. Item 6 of the brief, Nexus statute, says, "Although Wayfair appears to open the door to a Virginia requirement that remote sellers collect sales tax, affirmative action by the General Assembly likely would be necessary for the Department of Taxation to start collecting revenue." However, the brief also suggests that the department could impose certain aspects of existing law that are supported by the SCOTUS ruling. Those provisions were used to negotiate directly with Amazon in 2012 who did agree to begin sales tax collections in Virginia on September 1, 2013. The full text of the brief is available at http://dls.virginia.gov/pubs/briefs/Brief60.pdf. The Virginia Department of Taxation web site, https://tax.virginia.gov/sales-and-use-tax, should provide further guidance for out of state sellers as it becomes available.
Washington SSUTA TopThe guidance for Washington requires remote sellers, including sales made through a marketplace, to register, collect, and remit sales taxes for all sales made to Washington consumers if having either more than $100,000 in sales or over 200 transactions in Washington. These new regulations regarding Washington sales and use tax became effective October 1, 2018. Washington has provided this direction on its Department of Revenue web site at https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/remote-sellers .
West Virginia SSUTA TopAdministrative Notice 2018-18, issued October 1, 2018, from the State Tax Commissioner, Dale W. Steager, identifies the criteria by which the state will enforce its sales tax laws on out of state sellers making sales in West Virginia. The threshold for enforcement is either delivering more than $100,000 of goods or services, or engaging in more than 200 transactions for the delivery of goods or services into West Virginia during calendar year 2018. Those who meet the threshold will be required to collect and remit West Virginia state and municipal sales and use taxes on all sales made on or after January 1, 2019 that are delivered into West Virginia. The West Virginia State Tax Department web site, https://tax.wv.gov/Business/SalesAndUseTax/RemoteSellers/Pages/RemoteSellersAndWestVirginiaTax.aspx , provides some clarifications, definitions, and a list of FAQ's for remote sellers.
Wisconsin SSUTA TopRelevant information for out of state sellers making sales in Wisconsin is provided on the Department of Revenue web site. There it makes it known that beginning October 1, 2018, the state will require out of state sellers to collect and remit sales tax on sales of taxable products and services in Wisconsin. A small seller exception is included, even though it was not codified in law until December 18, 2018. The exception provides for sellers whose annual sales are less than $100,000 or more than 200 transaction into the state. The Wisconsin website is found at https://www.revenue.wi.gov/Pages/Businesses/remote-sellers.aspx .
Wyoming SSUTA TopWyoming will begin requiring remote and on-line sellers, meeting the thresholds to license, and collect sales tax effective February 1, 2019. Thresholds for Wyoming are more than $100,000 in gross revenue or more than 200 transactions for delivery in Wyoming. They Wyoming web site for remote sellers is available at https://0ebaeb71-a-84cef9ff-s-sites.googlegroups.com/a/wyo.gov/wy-dor/UpdatedRemotesellersbulletin.pdf. |