Tax Alert

There are new rules regarding sales tax collection and remittance for out of state sales. Up until June 21, 2018, registration is required only of remote sellers that have physical presence in a state.

On that date the U.S. Supreme Court decided in the South Dakota v. Wayfair, Inc. case that a new type of nexus was needed. Retailers with no physical presence in the state that are making sales of tangible personal property into a state may be required to collect and remit the states Sales Tax.

Remote sellers with no physical presence in a state that meet either of the following thresholds are likely required to register with that state’s tax department and begin collecting and remitting that state’s Sales Tax.

 

  • the retailer’s cumulative gross receipts from sales of tangible personal property to purchasers in the state are $100,000 or more; or
  • the retailer enters into 200 or more separate transactions for the sale of tangible personal property to purchasers in the state

Since each state will or has issued their own regulations regarding this decision, please contact us if you believe that this decision affects your business.