As the 2022 year comes to its final month, if you are not mindful, it can go by in a blur. December is notoriously full of PTO, holiday parties, and goal-setting for the following year. Here at Sales Tax and More, we like to set you up for success. So as the year comes to a close, we want to help you keep a few things in mind.
Read MoreProducts and companies are seeing an increase in sales and monetization via their eCommerce platforms! Small to midsize companies are blowing up, and this is due to a number of factors! Whether your business had a great season and you saw tremendous sales or your product/business went viral on a social media platform, and you have thousands of new sales. Either way, it is important to understand how sales tax can impact you and your business, what happens when you pass a threshold unexpectedly, when you should worry, and how to move forward.
Read MoreA lot of sellers have been getting letters from Pennsylvania indicating that the sellers have nexus in Pennsylvania due to inventory and that they should take advantage of the special, voluntary compliance program.
Read MoreMany of us in the state and local tax world are taught very early in our careers an acronym to help remember the five states that do not have a state-level general sales tax. The acronym is NOMAD and the states are New Hampshire, Oregon, Montana, Alaska, and Delaware. It is important to use the precise term “state-level general sales tax” because each of these states does have sales and use tax and/or similar taxes imposed on either specific business types or in local jurisdictions. For example, while Alaska has no sales and use tax at the state level, local jurisdictions are allowed to impose sales and use tax. There are currently 106 municipalities and boroughs that impose a tax.
Read MoreUp until the beginning of this year, only Texas and Pennsylvania required a physical presence for their “income” taxes. Most states have allowed some form of economic nexus for their income tax for years. This stems from the language the U.S. Supreme Court used when they issued their opinion in Quill Corp. v. North Dakota, 504 U.S. 298 (1992).
Read MoreFor some of you, the entire discussion of sales tax may be getting old. However, what I am referring to are the effective dates of some of the states economic nexus thresholds.
Read MoreOn Monday, March 29th, the California Department of Tax and Fee Administration (CDTFA) sent out a “Special Notice” titled New Use Tax Collection Requirements for Remote Sellers and New District Use Tax Collection Requirements for All Retailers
Read MoreWhen the Wayfair case was decided by the U.S. Supreme Court, the physical presence requirement for sales tax nexus was eliminated, paving the way for an economic nexus for sales tax. South Dakota, the state involved in the Wayfair case, believed that a substantial nexus could be created simply by having sales into South Dakota that exceeded $100,000 or 200 transactions. Many states saw the Supreme Court’s decision as an approval of the thresholds and rushed to implement and enforce their own thresholds identical to South Dakota. Minnesota even went live with a 100 transaction threshold. However, are states beginning to rethink transaction thresholds?
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