Sales Tax Policy Changes

On January 1 2024 Indiana elminated their 200 transaction threshold for remote sellers. However, they are still enforcing the 200 transactions for periods prior to 1/1/2024, so if you were over the 200 transactions in 2023 and were registered but not over the $100,000 threshold you can not deregister until 1/1/2025. To read more: https://www.in.gov/dor/business-tax/remote-seller-information/

We told you that we would let you know about any updates to the retail delivery in MN as we heard them. We are in receipt of some draft language. Here is what we believe based on language put out by the DOR. The actual language may change, but we believe the thought process will remain the same. Effective July 1, 2024, The Minnesota DOR will define "gross receipts" as the total amount received in money, by barter, or by exchange. It will exclude items that are not taxable that are listed separately on an invoice.

Rhode Island has made a major change to its annual sales tax reconciliation filing requirements for the tax year 2023 and beyond. Sales Tax permit holders are no longer required to submit the annual Sales and Use Tax Reconciliation Return (Form T-204R-Annual). Instead, a new form called Form RI-STR has been introduced, aligning Rhode Island's tax form with neighboring states and allowing taxpayers to reconcile sales periodically throughout the year.

The following is directly from the Alaska Municipal Sales Tax Program Quarterly News. “All digital goods and services delivered into ARSSTC jurisdictions should be assessed sales tax (following tax-exempt rules for entities). Digital goods and services include the categories listed below.”

New Jersey’s tax agency has announced its alignment with the Multistate Tax Commission’s (MTC) guidance on the application of PL 86-272 for income taxes. NJ is the second state behind California to adopt the MTC guidance on the federal level.

The state of New Jersey has enacted a corporation business law to update the corporation business tax nexus standard and update and amend other areas of corporate business law.

Effective for any periods ending on or after July 31, 2023, corporations deriving receipts from sources in New Jersey will now be deemed to have nexus if the corporation meets either of the following criteria:

On 8/1/2023 Louisianna will be removing its 200 transaction threshold. The $100k threshold will remain and will be the only economic threshold in LA. We are seeing more and more states move in this direction which is a positive trend for taxpayers. However, while this is a positive trend roughly 40% of states still have the 200 transaction threshold. Making it unwise to disregard across the board.

On 7/1/24 MN with put into effect a retail delivery fee with an exemption for small businesses under $1,000,000. We currently believe the $1 million is total sales and not just sales into MN, but we will be confirming. Among other things, retailers (including out-of-state retailers and marketplace providers) are subject to a $0.50 fee on each transaction that is $100 or more and involves a retail delivery in Minnesota. The fee applies once per transaction, regardless of the number of shipments needed to deliver the purchased items. The threshold for marketplaces is $100,000.

The Washington Department of Revenue has revised its excise tax rules on tax registration and the small business B&O tax credit. The department may relieve a taxpayer of its requirement to file returns and place them on the active nonreporting status if they meet the following conditions:

The State of South Dakota has revised its economic nexus provisions. Effective July 1, 2023, the state is removing the "200 or more separate transactions" threshold from the law for out-of-state remote sellers.