Identifying Your Sales Tax Risks

Is your business in compliance with the recent SCOTUS Wayfair decision, allowing states to require businesses to register, collect and remit sales tax without a physical presence in their state? It’s a game changer.

The sales tax rules have changed. While your business may have been in compliance six months ago, that could have changed now. Our recent insight provides a quick sales tax risk assessment. Contact our State and Local Tax team to learn more.

States Respond to SCOTUS Wayfair Decision

The historic decision by the U.S. Supreme Court in the South Dakota v. Wayfair case continues to provide states the opportunity to review their current sales tax collections rules. We recently updated a listing for each state and their current sales tax nexus law. This list includes effective dates, gross receipt amounts and number of transaction requirements. Review the insight here.

Last Chance: Sales Tax Compliance Webinar: How the SCOTUS Decision Impacts Out-of-State Sellers

What you think you know about sales tax may have changed with the recent Supreme Court decision in Wayfair. States are now permitted to collect sales tax from out-of-state sellers with no physical presence in their state including remote sellers, online retailers, phone order retailers and inbound (foreign) companies. Many states are announcing new economic nexus standards which expand their reach to taxing out-of-state sellers.

Staying informed as we navigate state sales tax reform is more important than ever. Register now for our upcoming webinar, Sales Tax Compliance – How the SCOTUS Decision Impacts Out-of-State Sellers on August 2, 2018.

Georgia Passes New Nexus Law

Online sales continue to have a negative impact on state and local tax revenue, and Georgia is the latest state to take action.

Georgia Governor Nathan Deal recently signed House Bill 61 legislation, which is an economic nexus law on internal sales and will affect certain retailers who conduct business in the state of Georgia. The law will require retailers who make sales outside of Georgia, for delivery into Georgia, to either collect and remit tax on those sales, or provide notice to purchasers that tax may be due. These retailers must send tax statements each year to purchasers who spend at least $500, and must file such statements with the Georgia Department of Revenue.

Retailers who are subject to this economic nexus include those in the previous or current calendar year who:

  • Have over $250,000 in gross revenue from retail sales of tangible personal property to be delivered to a location in Georgia, or
  • Have conducted 200 or more separate retail sales of tangible personal property to be delivered to a location in Georgia.

If you have any questions about this or similar legislation, contact your state and local tax professional.

Uh-Oh…Butch Clicked On It

In late March 2018, Idaho Governor, Butch Otter officially signed into law a house bill that will require all out of state or remote retailers to collect and remit sales and use tax. This is only applicable to out of state retails that generate over $10,000 dollars through their Idaho affiliates. Idaho is one of the few states that has enacted legislation related to the establishment of nexus through a parent entity or affiliates.

Do you or any of your affiliates do business in Idaho? If yes, you might have a filing requirement. Contact our state and local tax team for more information.