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 and Link to State Notice SST Full Member State Economic Nexus Effective Date Economic Nexus Annual Sales Threshold Economic Nexus Annual Transaction Threshold Notes
Alabama No 10/1/2018 250,000 N/A Marketplace Facilitators - sales tax remittance or sales reporting effective 1/1/2019
Arizona No 10/1/2019 200,000 in 2019
150,000 in 2020
100,000 in 2021
   
Arkansas Yes 7/1/2019 100,000 200 Bill signed by the Governor on 4/12/2019
California No 4/1/2019 500,000    
Colorado No 6/1/2019 100,000 200 The state passed emergency legislation for out of state retailers implementing an economic nexus provision.
Connecticut No 12/1/2018 100,000 200 Must satisfy both provisions
Washington DC No 4/1/2019 100,000 200 Bill B22-0914 establishing remote seller collection requirements is under review
Florida No No economic nexus provision No economic nexus provision No economic nexus provision  
Georgia Yes 1/1/2019 250,000 in 2019
100,000 in 2020
200  
Hawaii No 7/1/2018 100,000 200 The Department advised that they will not retroactively administer the economic nexus law, Act 41, as previously communicated.
Idaho No 6/1/2019 100,000    
Illinois No 10/1/2018 100,000 200  
Indiana Yes 10/1/2018 100,000 200 Enforcement pending resolution of a declaratory judgment action filed in 2017.
Iowa Yes 1/1/2019 100,000 200  
Kansas Yes 10/1/2019 - - Kansas Department of Revenue is enforcing remote collection, though the state does not have an economic nexus provision.
Kentucky Yes 7/1/2018 100,000 200  
Louisiana No 1/1/2019 100,000 200 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.
Maine No 7/1/2018 100,000 200  
Maryland No 10/1/2018 100,000 200 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.
Massachusetts No 10/1/2019 100,000 100  
Michigan Yes 10/1/2018 100,000 200  
Minnesota Yes 10/1/2018 100,000 100 The annual sales Threshold requires 10 or more retail sales
Mississippi No 9/1/2018 250,000 N/A Original effective date of Miss. Administrative Code § 35.IV.3.09 (12/1/2017) updated with guidance issued 8/6/2018.
Missouri No No economic nexus provision No economic nexus provision No economic nexus provision  
Nebraska Yes 1/1/2019 100,000 200 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.
Nevada Yes 10/1/2018 100,000 200 Issued guidance discussing proposed Thresholds and a discussion of SST provisions and registration resources.
New Jersey Yes 11/1/2018 100,000 200 Economic nexus and marketplace facilitator legislation passed on July 1, 2018. Later version was signed by the governor after changes were implemented.
New Mexico No 7/1/2019 100,000   Local GRT will apply beginning 7/1/2021.
New York No 1/1/2019 500,000 100 NY has updated the trheshold to $500,000 from $3200,000 via NYS Tsb-M-19(4)S, 11/05/2019. Based on four preceding quarter ending on last day in Febvruary, May, Auguts and November
North Carolina Yes 11/1/2018 100,000 200 North Carolina requires compliance beginning 11/1/2018 or 60 days after you reach the threshold
North Dakota Yes 1/1/2019 100,000    
Ohio Yes 1/1/2018 100,000 200  
Oklahoma Yes 6/1/2019 10,000 (Taxable Sales) N/A Remote sellers must either collect the tax or comply with notice and reporting requirements. The $10,000 threshold applies to taxable sales.
Pennsylvania No 7/1/2019 100,000 - Remote sellers must either collect the tax or comply with notice and reporting requirements.
Rhode Island Yes 8/17/2017 100,000 200 Remote sellers must either collect the tax or comply with notice and reporting requirements.
South Carolina No 10/1/2018 100,000   Revenue Ruling no 18-14 (8/18/2018)
South Dakota Yes 11/1/2018 100,000 200 Effective date on hold pending lifting of court injunction.
Tennessee Associate 10/1/2019 500,000 N/A  
Texas No 10/1/2019 500,000 - 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 inSouth Dakota v. Wayfair, Inc.
Utah Yes 1/1/2019 100,000 200  
Vermont Yes 7/1/2018 100,000 200  
Virginia No 7/1/2019 100,000 200 Applies to remote sellers and marketplace facilitators.
Washington Yes 10/1/2018 100,000 200 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.
West Virginia Yes 1/1/2019 100,000 200 West Virginia Administrative Notice No. 2018-18 10/1/18
Wisconsin Yes 10/1/2018 100,000 200 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.
Wyoming Yes 2/1/2019 100,000 200  

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