In July, the U.S. Supreme Court issued one of the biggest tax cases in decades, which dramatically expands when states can require out-of-state businesses selling to customers in their state to collect and remit sales and use taxes. This change will have a huge impact on anyone selling items or services over the internet.
If you are
selling items to customers in other states, it’s important that we talk soon so
we can set up systems now to track what sales are being made where, and whether
you might be required to register in any other state due to expanding filing
requirements. Getting ahead of these
changes now can prevent you from being subjected to numerous fines and
U.S. Supreme Court’s decision in Wayfair, Inc. vs. South Dakota, a
state could only require a business to collect sales or use tax from customers
if the business had some type of physical presence in the state, usually by
owning, leasing or storing property in the state or having an employee or agent
in the state.
can require out-of-state sellers to collect and remit sales and use taxes if
they make a minimum number of sales to customers in their state (in terms of
dollars and / or transactions), even if they have no physical presence in the
This is a
huge revenue raiser for the states and, not surprisingly, states are changing
their requirements for out-of-state sellers on an almost daily basis. To complicate matters even more, each state
and each local taxing jurisdiction may have different rules.
retailers making only a few sales into a state will not be impacted because
states are providing exceptions for businesses only making a minimum level of
sales (e.g., less than $100,000 in annual gross revenues and / or less than 200
To determine exceptions for small retailers, click here to check this listing by state.
contact us if you need assistance in determining your out-of-state sales tax