The U.S. Supreme Court will hear oral arguments in the South Dakota v. Wayfair case on April 17, 2018. The case involves a South Dakota law that requires an out-of-state seller to collect sales tax from South Dakota customers if the seller’s gross revenue from taxable sales delivered in South Dakota exceed $100,000 or the seller makes more than 200 deliveries in the state of South Dakota annually. We will continue to monitor developments in this historic tax case. If you have questions about your responsibilities to collect and remit sales tax, please contact a member of our state and local tax team.
Are you considering doing business or having employees in the state of Texas? Have you had issues with your state tax filing? Join our State and Local Tax team on February 27 to explore some helpful insights into Texas tax filings. This webinar will cover registration, various taxes, starting and closing a business, and other sales tax issues. Learn more and register here.
Are you considering doing business in Washington state or having employees in the state? Have you had issues with your state tax filing? Join our State and Local Tax team on January 26 to explore some helpful insights into Washington tax filings. This webinar will cover registration, various taxes, starting and closing a business, and other sales tax issues. Learn more and register here.
Businesses and individuals are trying to determine what tax reform means for them and what to do moving forward. Eide Bailly has created a series of Tax Reform webinars exploring the key provisions, effective dates, how the current plan impacts businesses and individuals, and possible action items and next steps.
Please consider registering for one or all of the webinars by clicking on the topics of interest.
State Considerations: January 19, 2018
Accounting Methods and Cost Recovery Considerations: January 25, 2018
Pass-Through Deductions and Section 199A: February 1, 2018
Impact to Exempt Organizations: February 8, 2018
General Individual and Estate Planning Implications: February 15, 2018
International Considerations: February 22, 2018
Another good resource for tax reform information is our Tax Reform webpage. Here you can find articles, sign up for updates or even contact someone with specific questions.
Please contact your Eide Bailly professional for assistance in figuring out how tax reform impacts your specific situation.
Today the United States Supreme Court announced it will hear the South Dakota challenge in the 1992 Quill decision. In South Dakota v. Wayfair, the South Dakota Supreme Court ruled the economic nexus standard for sales tax established by the South Dakota legislature as unconstitutional. South Dakota decided that sales tax nexus was established by meeting the minimum threshold of 200 total sales or $100,000 in total South Dakota transactions/sales. In Quill, sales tax nexus required substantial presence which is widely considered to be physical presence.
Contact a member of our state and local tax team to learn more or for assistance with your sales tax questions.
The Ohio Department of Taxation issued a release stating that “substantial nexus” exists for Ohio sales and use tax purposes if the seller has gross receipts in access of $500,000 and if the seller uses in-state software to sell tangible personal property or services or enters into an agreement with another person to accelerate or enhance the delivery of the sellers website to others. The release (Sales Tax Information Release ST 2017-02) notes a difference between “in-state software nexus” and “network nexus”. In-state software refers to the use of software to sell or lease taxable tangible personal property or services in Ohio. Network nexus refers to the creation of a network to distribute property whether through taxable sales, storage, use or consuming in Ohio. If the benefit is realized in Ohio, sales tax is owed in Ohio. Anyone making taxable sales in Ohio will need to obtain a seller’s permit, collect tax, file returns and remit tax.
This is the latest update in the Sales Tax Nexus conversation. Ohio’s law appears to be more aggressive than South Dakota and similar to Massachusetts. If you’re doing business across state borders, you may need assistance ensuring compliance. Contact a member of our State and Local Tax Team to learn more.
The Wyoming Department of Revenue has given notice that it cannot enforce recently enacted tax legislation pending the outcome of legal action filed against some out-of-state remote sellers.
The new legislation requires the collection of Wyoming sales tax by a seller of tangible personal property, admissions and taxable services on sales into Wyoming based on a test of certain dollar levels and number of sales transactions. This legislation is similar to legislation being enacted in other states, as states continue to test the physical presence requirement of Quill v. North Dakota.
In the Wyoming legislation, a seller would be subject to collecting sales tax, if, in the previous or current calendar year:
- The seller’s sales into Wyoming exceed $100,000, or
- The seller has 200 or more separate transactions into Wyoming.
Are you doing business in the State of Wyoming or anywhere online? Contact a member of our State and Local Tax team to learn more about your compliance obligations and current disclosure options.