Sales Tax Blog
How COVID-19 Is Affecting Sales Tax
The immediate effects of COVID-19 are clear. We see them on the news and social media every day, and it’s having an impact on almost everyone in the country. But there are effects we can’t necessarily see right away that could have a lasting impact on states and municipalities. One major issue that states are starting to grapple with, while balancing the need for safe policy to protect their citizens, is revenue. The month of March in particular represented a sharp drop in revenue consumer spending down nearly 20% between February and April during the height of the economic shutdown… Read MoreFree Sales Tax Economic Nexus Determination
When was the last time you reviewed your sales tax obligations across states other than the one(s) where you have a physical office? Due to the COVID-19 outbreak, many states are losing much needed revenue due to a decline in tourism, dining out, and other activities that many of us took for granted. Because of the SCOTUS Wayfair decision, we know states are paying more attention to non-traditional revenue targets, e.g. businesses doing business in their state but not actually registered to pay sales tax. Now coupled with a drop in sales tax revenues, there is a heightened due diligence… Read More
Colorado’s New Tax Bill to Simplify Sales and Use Tax Collection
Colorado’s HB19-1240 was introduced on March 12, 2019 as a means to simplify sales and use tax collection in relation to the economic nexus rules that went into effect late last year. The bill is currently under consideration but has target dates starting this summer and wide support in Colorado’s legislature, indicating it is likely to pass. In addition to more carefully defining economic nexus for out of state sellers, the bill would introduce marketplace facilitator rules, repeal some obsolete statutes related to out-of-state sellers and redefine sourcing rules while introducing new exemptions. What HB19-1240 Proposes Colorado already has an… Read More
The Next Round of New Sales Tax Laws in CA, FL and NM
As we approach the one-year anniversary of the U.S. Supreme Court’s South Dakota v. Wayfair, Inc. decision, a wave of new sales tax laws is about to be enacted in several large states throughout the country. Already to date there are laws in more than 30 states and several more set to go into effect in 2019. While some of these laws were already on the books before Wayfair and weren’t enforceable pending legislation, many others have been passed since the ruling as states no longer face constitutional challenges to their taxing authority on out of state sellers. Let’s take… Read More
Affiliate Programs and Sales Tax in 2019
For the better part of two decades, the Internet economy has relied heavily on affiliates and third-party publishers to amplify the messaging and reach of online retailers. Whether it’s blogs and newsletters pointing back to Amazon through its Associates program or rebate software driving traffic to relevant goods on niche eCommerce sites, affiliate marketing has long offered an opportunity for companies to pay for high-quality, targeted traffic from relevant sources. One of the biggest challenges of these programs, however, was the constantly shifting laws around sales tax liability at the state level. Some programs were only offered in states with… Read More
Important Sales Tax Dates for April 2019
April is a fairly easy month for sales tax. Most every business has a return due, unless you file annually. Many states are due on the 20th of each month, but since that’s a weekend this month, they will be due on April 22. So even though you’ll be busy dealing with your income tax return, it will be important to make sure you don’t forget your business sales tax obligations, too. Alabama Quarterly Taxes Due 4/22 * Monthly Taxes Due 4/22 * Arizona Quarterly Taxes Due 4/22 * Monthly Taxes Due 4/22 * Arkansas Quarterly Taxes Due 4/22 *… Read More
4 Things to Consider Before Bringing in Outside Capital
When we tally the requirements for entrepreneurship, we love to talk about grit and passion and vision and work ethic. While all of these qualities do help, your business isn’t going to go anywhere without funding. If you’re looking to fund your small business (and bootstrapping isn’t cutting it for you), there are two main ways to raise outside capital: debt financing and equity investment. Business owners who aren’t ready to relinquish control turn to debt financing. Lenders don’t expect to have a say in your business; they just expect you to make your payments. Then, once you’ve repaid your… Read More
Virginia Senate Passes Bill Implementing Remote Sales Tax
The Virginia Senate recently passed Senate Bill 1083, a new law that would allow the state to start collecting sales tax from remote sellers out of state. Originally introduced to the Virginia Senate at the start of the 2019 legislative session, the bill has now passed and is expected to be signed by Governor Ralph Northam in the coming weeks. When signed, this bill will make Virginia the latest of more than 30 states to implement some form of remote sales tax on out of state sellers, something that was considered unconstitutional until very recently. While vendors work to fully… Read More