Wayfair
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South Dakota v. Wayfair Sales Tax Services

Complying with new and existing sales tax collection and remittance requirements in light of the U.S. Supreme Court decision regarding South Dakota v. Wayfair is poised to be one of the most challenging issues facing internet retailers and service providers today.

Duff & Phelps has deep experience and expertise in helping clients comply with new and existing requirements. Our clients benefit from a full suite of services including:

 

  • Evaluating revenue streams and economic nexus parameters for taxability guidance

  • Resolving prior period and prospective exposures

  • Voluntary disclosure and audit support

  • Ongoing compliance, matrix and policy and procedure development

  • Legislative updates

  • Internal and external communications

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High Level Overview of Taxing Authorities Efforts to Impose Tax Collection on Remote Sellers (Other and physical presence and attributional activities)
Jurisdiction SST Full Member State Economic Nexus Effective Date Economic Nexus Annual Sales Threshold Economic Nexus Annual Transaction Threshold Economic Nexus Effective Date Notes
AL No 10/1/2018 250,000 n/a Alabama Marketplace Facilitators - sales tax remittance or sales reporting effective 1/1/2019
AZ No          There is no economic nexus provision in place. HB 2702 has been introduced on 2/13/2019. 
AR Yes 7/1/2019 100,000 200 Arkansas  Bill signed by the Governor on 4/12/2019 
CA No 4/1/2019 100,000 200 California  Rules are not final so subject to change. 
CO No 12/1/2018 100,000 200 Colorado  The state passed emergency legislation for out of state retailers implementing an economic nexus provision. 
CT No 12/1/2018 250,000 200 Connecticut  Must satisfy both provisions 
DC No 4/1/2019 100,000 200 Washington DC Bill B22-0914 establishing remote seller collection requirements is under review 
FL No         SB 1112 would establish $100,000 or 200 transaction threshold effective 7/1/2019. 
GA Yes 1/1/2019 250,000 200 Georgia  Collection in leu of reporting requirements 
HI No 7/1/2018 100,000 200 Hawaii The Department advised that they will not retroactively administer the economic nexus law, Act 41, as previously communicated.
ID No 6/1/2019 100,000   Idaho
IL No 10/1/2018 100,000 200 Illinois 
IN Yes 10/1/2018 100,000 200 Indiana  Enforcement pending resolution of a declaratory judgment action filed in 2017. 
IA Yes 1/1/2019 100,000 200 Iowa 
KS Yes         There is no economic nexus provision in place. 
KY Yes 7/1/2018 100,000 200 Kentucky 
LA No 1/1/2019 100,000 200 Louisiana  The Louisiana Tax Commission is authorized to act act as the single collector of the sales and use tax with respect to remote sales. The tax is to be remitted on the Direct Marketer Sales Tax Return Form R-1031A. 
ME No 7/1/2018 100,000 200 Maine 
MD No 10/1/2018 100,000 200 Maryland  The Comptroller's Office reminded taxpayers that the state impose sales tax collection requirements as broadly as is permitted under the United States Constitution. They should examine the Wayfair decision and determine how it applies to their business. 
MA No 10/1/2017 500,000 100 Massachusetts  Must satisfy both provisions 
MI Yes 10/1/2018 100,000 200 Michigan 
MN Yes 10/1/2018 100,000 100 Minnesota  The annual sales Threshold requires 10 or more retail sales 
MS No 9/1/2018 250,000  n/a  Mississippi  Original effective date of  Miss. Administrative Code § 35.IV.3.09 (12/1/2017) updated with guidance issued 8/6/2018. 
MO No       Missouri  SB 50 and multiple others have been proposed but none have passed yet.  Proposed thresholds of $100,000 or 200 transactions. 
NE Yes 1/1/2019 100,000 200 Nebraska  Statement issued 7/27/18 stating that compliance with Wayfair would be required by 1/1/2019 and legislation would be sought in the 2019 session upon the final outcome of Wayfair. 
NV Yes 10/1/2018 100,000 200 Nevada  Issued guidance discussing proposed Thresholds and a discussion of SST provisions and registration resources. 
NJ Yes 11/1/2018 100,000 200 New Jersey Economic nexus and marketplace facilitator legislation passed on July 1, 2018.  Later version was signed by the governor after changes were implemented. 
NM No 7/1/2019 100,000     Local GRT will apply beginning 7/1/2021. 
NY No 1/1/2019 300,000 100 New York    
NC Yes 11/1/2018 100,000 200 North Carolina North Carolina requires compliance beginning 11/1/2018 or 60 days after you reach the threshold 
ND Yes 10/1/2018 100,000 200 North Dakota 
OH Yes 1/1/2018 500,000  n/a  Ohio  Requires use of software to facilitate sales. Enforcement is pending litigation. 
OK Yes 4/10/2018 10,000 (Taxable Sales)    Oklahoma  Remote sellers must either collect the tax or comply with notice and reporting requirements.  The $10,000 threshold applies to taxable sales. 
PA No 4/1/2018 100,000 Pennsylvania  Remote sellers must either collect the tax or comply with notice and reporting requirements. 
RI Yes 8/17/2017 100,000 200 Rhode Island  Remote sellers must either collect the tax or comply with notice and reporting requirements. 
SC No 10/1/2018 100,000     Revenue Ruling no 18-14 (8/18/2018) 
SD Yes 11/1/2018 100,000 200 South Dakota  Effective date on hold pending lifting of court injunction. 
TN Associate TBD 500,000  n/a  Tennessee  Enforcement pending resolution of litigation 
TX No 10/1/2019 500,000 Texas  The Texas Comptroller of Public Accounts has adopted amendments to regulations (34 Tex. Admin. Code § 3.286, effective 01/01/2019) concerning remote sellers in the wake of the U.S. Supreme Court's decision in South Dakota v. Wayfair, Inc. 
UT Yes 1/1/2019 100,000 200 Utah
VT Yes 7/1/2018 100,000 200 Vermont 
VA No 7/1/2019     Virginia  Applies to remote sellers and marketplace facilitators. 
WA Yes 10/1/2018 100,000 200 Washington  The department issued guidance on 8/3/2018 updating its annual spend and transaction thresholds. The $10,000 threshold for notice and reporting remains in effect for taxpayers that have not exceeded the $100,000/200 transaction threshold. 
WV Yes 1/1/2019 100,000 200 West Virginia  West Virginia Administrative Notice No. 2018-18 10/1/18 
WI Yes 10/1/2018 100,000 200 Wisconsin  No statutory authority, will be enacted by rule. Public hearing to be held 7/26/18 to consider a permanent and emergency scope statement relating to remote sellers. 
WY Yes 2/1/2019 100,000 200  Wyoming 

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