Sales Tax Blog
Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit
Since June 2018, there has been a surge of legislation and corresponding litigation around the implementation of new sales tax laws. While many states are implementing new laws that go into effect this year, others have had economic nexus laws in place since well before the Wayfair ruling. Massachusetts is one of those states, having passed a law in October 2017 that required out-of-state online retailers to collect sales tax. This alone isn’t out of the ordinary. More than a dozen states had similar laws on the books before Wayfair, and many online retailers opted not to comply, citing previous… Read More
How to Avoid Sales Tax Overpayments
Following the Supreme Court’s decision in the Wayfair case, online retailers were left wondering how exactly the next year would play out. How many more states would implement new Economic Nexus laws, and how would they go about collecting and remitting sales tax to those states to stay compliant? A big part of that is calculating and remitting the correct amount of sales tax for sales. With dozens of states now implementing these laws and different tax rates in each state (and many municipalities), it’s more difficult than ever for a small online retailer to keep track of and pay… Read More
Important Sales Tax Dates for February 2019
We’re all settled into a routine and have stopped writing 2018 on our checks, right? That’s great, but make sure you keep up with your other routines, too…such as filing your sales tax returns! Here’s a helpful list of due dates, broken down by state. Anywhere you see a *, that means the normal date falls on a weekend, so your return is due the next business day. Alabama Monthly Taxes Due 2/20 Arizona Monthly Taxes Due 2/20 Arkansas Monthly Taxes Due 2/20 California Monthly Taxes Due 2/28 Colorado Monthly Taxes Due 2/20 Connecticut Monthly Taxes Due 2/28 District of… Read More
How Marketplace Facilitator Laws Impact Online Sellers
In recent years, ecommerce and the sales tax implications of running such a business have become significantly more intricate and complex. Where once physical nexus laws and a limited number of outlets on which to sell goods made the process relatively simple, there are now dozens new regulations, laws and requirements, all of which vary by state and municipality. In addition to the recent spate of new affiliate nexus laws being implemented following the June 2018 Supreme Court Wayfair decision, marketplace facilitator laws are impacting how and when both large ecommerce sites with marketplaces and smaller, third party companies are… Read More
Congressional Bills Resulting from the Wayfair Decision on Sales Tax
Last year was a significant year for all businesses that sell across state lines online. The June 21, 2018 US Supreme Court decision in South Dakota v Wayfair struck down more than 25 years of precedent, allowing states to collect sales tax on remote sales without the need for physical nexus. The result was a wave of anxiety among small and medium sized businesses that were not yet equipped to collect and process these transactions for each individual state. Since the Supreme Court’s decision, more than a dozen additional states have passed or moved forward to enact previously passed sales… Read More
Common Sales Tax Exemptions and When They Apply
Sales tax has always been a complicated web of regulations and laws for retailers to untangle. For e-commerce companies in particular, it was difficult to know when and how to collect sales tax based on where they had physical nexus. Now, with the recent Wayfair decision from the US Supreme Court, there are more questions than ever as an increasing number of states pass economic nexus laws requiring sales tax collection from all vendors who do business there. If you do enough business across state lines online – either in dollar amount (typically $100,000 or more) or transactions (200 or… Read More
Important Sales Tax Dates for January 2019
Can you believe it’s almost 2019? We’re looking forward to a great new year and wish you a wonderful one, too! Start 2019 off on the right foot by filing your sales tax returns on time. Check our handy state-by-state list of sales tax due dates below. Another thing to note: there are new sales tax laws going into effect, too. Check out what’s new for economic nexus in 2019. Alabama Yearly Taxes Due 1/21 * Quarterly Taxes Due 1/21 * Monthly Taxes Due 1/21 * Arizona Yearly Taxes Due 1/21 * Quarterly Taxes Due 1/21 * Monthly Taxes Due… Read More
New Sales Tax Laws Going into Effect in 2019
Few years have had as big of an impact on how small businesses operate online as 2018. With the landmark US Supreme Court Decision in Wayfair v. South Dakota, economic nexus regulations became the law of the land in dozens of states around country, with many more queued up almost immediately. What this means for businesses that don’t have the infrastructure to manage sales tax collection for an increasing number of states, remains to be seen, but that hasn’t stopped other states from passing or moving forward to implement their own economic nexus laws in the latter half of 2018… Read More