As of September 28, 2018, the following states have issued guidance about when their new sales tax filing requirements will become effective (states highlighted in RED have been added since our August 14th Advisory). These effective dates are:
Alabama, Mississippi – Remote sellers with annual in-state sales in excess of $250,000 small seller exception should register and collect sales tax (based on total sales into the state in the prior twelve-month period).
Connecticut – A retailer must collect and remit sales tax if in-state sales exceed a threshold of 200 transactions during the preceding twelve-month period and gross receipts are $250,000 or more during that same period.
Georgia – Sellers making 200 or more sales of tangible personal property or having gross revenue exceeding $250,000 in the previous or current calendar year from sales of tangible personal property delivered electronically or physically in Georgia are required to register to collect and remit sales tax in Georgia or comply with notice and reporting requirements.
Minnesota – Remote sellers with 100 or more retail sales shipped to the state or 10 or more retail sales shipped to the state that total more than $100,000 during a period of twelve consecutive months, must register and begin collecting sales tax.
Oklahoma – A remote seller with at least $10,000 in aggregate in-state sales in the preceding twelve-month period must either file an election to obtain a sales tax permit and collect and remit sales tax due on tangible personal property or comply with notice and reporting requirements.
Washington – Beginning January 1, 2018, remote sellers making $10,000 or more in retail sales to Washington purchasers had to choose between registering their business and collecting and remitting sales/use tax due on in-state sales or comply with notice and reporting requirements. Beginning October 1, 2018, remote sellers making either $100,000 or more in sales to or 200 transactions with in-state purchasers must register their business and collect/submit retail sales/use tax on those sales.
In addition to the above jurisdictions, Tennessee previously enacted an economic nexus regulation that is not currently being enforced due to a court-ordered injunction resulting from a legal challenge, while Wyoming has passed legislation similar to the South Dakota law, however their Department of Revenue is reviewing the Wayfair decision to determine how it applies to their laws and their ability to require collection of tax.
A number of other states, including Massachusetts, Ohio, Pennsylvania and Rhode Island previously enacted expanded sales tax nexus legislation that impacts filing requirements for remote sellers. These policies vary by state, and we are anticipating additional guidance from these states’ taxing authorities regarding sales tax collection implications for remote sellers. California, New York, Texas and other states are in the process of determining potential sales tax implications for remote sellers in their jurisdictions.
Tronconi Segarra & Associates will continue to track the latest state-by-state sales tax developments related to the Wayfair decision and will issue further advisories as additional states indicate how they will be addressing this unprecedented shift in sales tax compliance. For more information, please contact a member of our State and Local Tax team or check our Wayfair page at www.tsasalt.com.
