Internet Sales Taxes and Remote Sellers

internet shopperInternet Sales Taxes

The United States Supreme Court ruled in South Dakota v. Wayfair on June 21, 2018, that states can require remote sellers to collect and remit sales tax on items delivered to locations within their state regardless of physical presence.

Remote Sellers

If you sell to a state, but do not have a physical presence in that state, you are now a Remote Seller.  As a remote seller, you will need to check with each state to determine if you are required to register in that state.

Who-What-Where-When-Why

Registration requirements, small business exemptions, effective dates, and other factors all vary by state.  Some states have not published their rulings yet; and other states don’t have plans to implement a ruling in the near future.

The following chart will be updated regularly as new information becomes available.  It is not legal advice, but it is an informative reference with links to the departments of revenues and their publications on the topic.

STATE$ Gross Receipts
Limit
# Retail Sales
Transactions
EFFECTIVE DATEDepartment of Revenue Links
Alabama$250,000October 1, 2018AL DOR Announement
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
Georgia$250,000200January 1, 2019GA Requirements
Hawaii$100,000200July 1, 2018HI DOR Announcement
Indiana$100,000200October 1, 2018IN DOR Tax Bulletin
Iowa$100,000200January 1, 2019IA DOR Announement
Kentucky$100,000200July 1, 2018KY Ruling FAQs
Louisiana$100,000200January 1, 2019Louisiana DOR
Maine$100,000200July 1, 2018ME Help for Remote Sellers
Maryland$100,000200October 1, 2018MD DOR Tax Alert
Massachusetts$500,000100October 1, 2017MA DOR rule has been in effect since 2017
Michigan$100,000200October 1, 2018MI DOR Document
Minnesota$100,000100October 1, 2018MN Bulletin for Remote Sellers
Mississippi$250,000September 1, 2018MS DOR Guidance for Online Sellers
Nebraska$100,000200January 1, 2019NE DOR News Bulletin
New Jersey$100,000200October 1, 2018NJ DOR Notice for Remote Sellers
North Carolina$100,000200November 1, 2018NC DOR Directive
North Dakota$100,000200October 1, 2018ND DOR
Pennsylvania$10,000March 1, 2018PA DOR
Rhode Island$100,000200RI DOR FAQs for Remote Sellers
South Dakota$100,000200October 1, 2018 SD DOR Remote Seller Law
Vermont$100,000200July 1, 2018VT DOR
Washington$100,000200October 1, 2018WA DOR
Wisconsin$100,000200October 1, 2018WI DOR FAQs
Wyoming$100,000200Date TBDWY DOR Page

We Have The Tax Rates

Zip2Tax has Sales  and Use Tax Tables that offer a wide range of options to meet your needs.  Online shopping cart integration, ERP system platforms, call centers and invoicing programs. Single state, entire US and/or Canada, monthly subscriptions or one-time downloads…whatever you need.

All ZIP codes in every State included—over 12,000 jurisdictions!

Automate your online shopping cart with sales tax data at the point of sale. A secure sales tax API connects your database to the Zip2Tax constantly updated servers to power your e-commerce site with a real-time data when you need it.

Use this handy comparison chart to match our services to your needs.  Then give us a call, email or Chat!

 

 

July 1st Sales / Use Tax Rate Changes

The July 1, 2018 Sales / Use Tax Rate changes and updates are plentiful this month.  But first, there is this:

South Dakota v. Wayfair

After the U.S. Supreme Court handed down its decision in South Dakota v. Wayfair permitting states
to collect sales taxes on sellers with no physical presence in the state, states rushed to understand
what it meant for the tax base. Several states – Connecticut, Hawaii, Kentucky, and North Dakota
– already had some form of online sales tax legislation with an effective date of July 1, 2018.

Several of these states prepared their legislation with the Wayfair case pending and will likely need to make legislative tweaks and issue more guidance to retailers before they are ready to begin sales tax collections from out-of-state sellers.

Other July 1 changes in sales or use tax include:

Alabama changes

The City of Boaz, in both Etowah and Marshall counties, raised their general Sales and Use tax by 1%.

And the City of Henegar added a new Use tax of 4%.  If you are conducting business outside the corporate limits of the City of Henagar but within the police jurisdiction, the
Use tax rate is 2%.

Arkansas changes

The were changes in the Sales tax for the following:

  • Crossett (Ashley county) 1.25
  • Siloam Springs (Benton county) 1.375
  • Greenbriar (Faulkner county) 2.50
  • Maumelle (Pulaski county) 2.0
  • and the county of Jefferson, 1.25
California changes

There is a new reporting code 631 for Napa county.  Also, Saint Helena in Napa county, reporting code 632, increased the sales tax rate.

Our research team did some fine tuning of the tax tables for the unincorporated areas of Sacramento to reflect a 0% city rate.  Please make a note when dealing with ZIP codes in Sacramento – is the address in the city limits or the unincorporated boundaries?

Colorado changes

Changes in sales tax rates include the following Colorado cities:

  • Nederland (Boulder county) is now 4% and the use tax increased to 3%
  • Paonia (Delta county) is now 3%
  • Monument (El Paso county) has a new PIF of 2%
  • Ignacio (La Plata county) is now 3%
  • Craig (Moffat county) is now 4%

Information about changes to some Special District Tax exemptions can be found here.

Georgia changes

Our research team did some fine tuning of the tax tables for Dekalb and Fulton counties in Georgia when the ZIP is considered Atlanta.  For example, outside of Atlanta, a Dekalb county rate is 4%; but inside Atlanta, the Dekalb county rate is 3%.  And for Fulton county, the rate is 3.75% is outside Atlanta, but 3.0% if inside Atlanta.

Iowa changes

The following cities have added a 1% Local Option bringing the total sales tax rate including the State’s 6% to 7%.

  • Dallas Center
  • De Soto
  • Dexter
  • Granger
  • Linden
  • Minburn
  • Unincorporated areas of Dallas County
  • Van Meter
  • Waukee
  • Clive
  • Grimes
  • Urbandale
  • West Des Moines
Illinois changes

Illinois tops the list of most rate changes this month. For all the details, you can click this Illinois DOR Bulletin.  But here is a summary for you.

Cities reporting changes (all increases) are:

  • City of Canton in Fulton County increased by .50%
  • City of Bartlett in Cook / DuPage / Kane Counties increased by 1% in each location.
  • Carbon Cliff (Rock Island County) +.25%
  • Carol Stream (DuPage County) +.25%
  • Clay City (Clay County) +1.0%
  • Deer Park (Cook and Lake Counties) +.25%
  • East Peoria (Tazewell County)+.25%
  • Elgin (Cook and Kane Counties) +.25%
  • Findlay (Shelby County) +1.0%
  • Geneva (Kane County) +.50%
  • Glen Elllyn (DuPage County) +.25%
  • Hinckley (DeKalb County)
  • Kankakee (Kankakee County
  • LaSalle (LaSalle County)
  • Maple Park (DeKalb and Kane Counties) +1.0%
  • Naperville (DuPage and Will Counties) +.25%
  • Norridge (Cook County)
  • Northbrook (Cook and Lake Counties) +.25%
  • Northfield (Cook County) +.25%
  • Shabonna (DeKalb County)
  • Springfield (Sangamon County)
  • Waukegan (Lake County)
  • Washington (Tazewell County)

There are two county-wide changes in Illinois for Richland County and Woodford County.  Each increased 1.0% for the County School Tax.

Kansas changes

Cities reporting changes are Abilene; reducing their sales tax to .75%; Attica is increasing their rate to 2%; and Sylvia is implementing a first time sales tax rate of .5%..

  • Butler County, located just outside Wichita, is eliminating their 0.25% sales tax.  This affects thirteen cities, including El Dorado, Augusta, and Andover.
  • Marion County, another county bordering Wichita, is reducing their 1.5% sales tax to a flat one percent.  This will impact twelve cities, including Marion, Burns, and Lost Springs.
  • Neosho County is raising their sales tax from 1% to 1.75%.  This affects seven cities, including Chanute and St. Paul.
Louisiana changes

Remember that 1% Sales tax rate that was approved in 2016 and expiring on June 20, 2018?  The Louisiana House of Representatives voted 74-24 for a new sales tax rate of 4.45 percent after over a year of disagreement.  The new rate is effective July 1st and will stay in place until July 2025.

Cities sales tax rates changes include

  • Cottonport (Avoyelles Parish)
  • Haynesville (Claiborne Parish)
  • Simsboro (Lincoln Parish)
  • Lecompte (Rapides Parish)
  • Gramercy (Saint James Parish)
  • Lutcher (Saint James Parish)
Missouri changes

The following counties imposed a local option use tax at the same rate as the county’s sales tax.

  • New Madrid County Use tax will now be 1.5%
  • Texas County Use tax will now be 1.88%

Holt County has extended the existing .5% county capital improvements sales tax. This also applies to the county’s local use tax.

New Mexico changes

New Mexico does not have a sales tax. It has a gross receipts tax instead.  Nevertheless, the changes as of July 1st include:

  • Albuquerque (Bernalillo County)
  • Cimarron (Colfax County)
  • Corrales (Sandoval County)
Oklahoma changes

The Okmulgee county sales tax rate increased from 1.25% to 1.583%.

The following cities in OK have also have sales and/or use tax rate increases as of July 1st.

  • Wilson (Carter County) – increase to 4%
  • Loyal (Kingfisher County) – increase just the sales tax to 4%
  • Stonewall (Pontotoc County) – increase just the sales tax to 4%
  • Weatherford (Custer County) – increase to 4.5%
  • Boley (Okfuskee County) is now adding a USE tax of 5% where it had none before.
South Dakota changes

The cities of Roslyn and Rosholt have increased rates of 3% and 2% respectively.

Texas changes

Hickory Creek in Denton County reduced the sales & use tax for the Municipal Street Maintenance and Repair (SMR) from 2.0% to 1.75%.

Vermont Changes

The Killington local option sales tax rate of 1% that was effective as of October 2008, has been rescinded as to July 2, 1018 decreasing the total sales tax rate to 6%.

Washington State Changes

Effective July 1, 2018, the City of Grand Coulee will establish a Transportation Benefit District (TBD). Sales and use tax within the City of Grand Coulee will increase two-tenths of one percent (.002). The tax will be used for transportation services.  Click here for more information.
Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Grand Coulee (1305). Persons or businesses within the City of Grand Coulee will be subject to the new tax rate for reporting use tax on items purchased for their personal or business use if sales tax has not been paid.

Effective July 1, 2018, local sales and use tax within the City of Olympia will increase one-tenth of one percent(.001). The tax will be used for housing and related services. For details can be found here.

West Virginia Changes

The State of WV Sales Tax rate is 6% – higher than most state rates.  But that is because there are relatively few local sales taxes.  In fact there are only 40 local tax rates out of a possible 230 municipalities…until now…there are 4 new local taxes that are adding 1% to the state rate effective July 1st.

  • Athens
  • Davis
  • Elizabeth
  • Elkins

According to the West Virginia State Tax Department, all vendors and sellers that do business in a municipality with local tax must collect and remit it in addition to the state sales tax.

Sales Tax is Hard!

Let us help make it a bit easier.  Have you checked out our Sales and Use Tax Rates By State page on our Web site?  Just click on a state in the map and find the basics: state rate, use tax rate, other oddities, and information such as is shipping is taxable, and a link to the state’s department of revenue (DOR).

We also have a page for taxes by Canadian Provinces.

This information is provided at no charge to get you started with the basics for each state.

Contact UsCall, chat, or email Teresa today for more information about our sales and use tax products!  See our product comparison chart.

Direct E-mail: TeresaF@Zip2Tax.com
Direct Phone : 1-866-492-8494

 

Sales Tax Holidays for 2018

Sales Tax Holidays

Sales Tax Holidays

STATEITEMS INCLUDED / MAXIMUM COSTMONTHDAYSLink to MORE DETAILS
AlabamaHurricane Preparedness
Generators - $1,000
Supplies - $60
February23-25Alabama Department of Revenue
AlabamaBack to School
Clothing - $100
Computers - $750
School Supplies - $50
Books - $30
July20-22Alabama Department of Revenue
ArkansasBack to School
Clothing - $100
School Supplies
August4-5Arkansas Department of Revenue
ConnecticutBack to School
Clothing and Footwear - $100
August19-25Connecticut Department of Revenue
FloridaDisaster Preparedness
Generators - $750
Other Supplies - $50
June1 - 7http://floridarevenue.com/
FloridaBack to School
Clothing - $60
School Supplies - $50
August3 - 5http://floridarevenue.com/
IowaBack to School
Clothing - $100
August3 - 4Iowa Department of Revenue
LouisianaAnnual Sales Tax Holiday
All TPP - $2,500
August3 - 4 Louisiana Department of Revenue
LouisianaHurricane Preparedness
Supplies - first $1,50(2% rate reduction)
May26 - 27Louisiana Department of Revenue
LouisianaFirearms
Ammunition
Hunting Supplies
September7 - 9Louisiana Department of Revenue
MarylandEnergy Star ProductsFebruary17 - 18Maryland Department of Revenue
MarylandBack to School
Clothing and Footwear - $100
August12 - 18Maryland Department of Revenue
MississippiBack to School
Clothing and Footwear - $100
July27 - 28Mississippi Department of Revenue
MississippiFirearms
Ammunition
Hunting supplies
August / Sept31 - Sept 2Mississippi Department of Revenue
MissouriEnergy Star Products - $1,500April19 - 25Missouri Department of Revenue
MissouriBack to School
Clothing - $100
Computers - $1,500
School Supplies - $50
August3 - 5Missouri Department of Revenue
New MexicoBack to School
Clothing - $100
Computers - $1,000
Computer Equipment - $500
School Supplies - $30
August3-5New Mexico Department of Revenue
OhioBack to School
Clothing - $75
School Supplies - $20
August3-5https://www.tax.ohio.gov/
OklahomaBack to School
Clothing - $100
August3-5http://www.tax.ok.gov/
South CarolinaBack to School
Clothing
School Supplies
Computers
Other
August3-5South Carolina Department of Revenue
TennesseeBack to School
Clothing - $100
School Supplies - $100
Computers - $1,500
July27-29Tennessee Department of Revenue
TexasHurricane Preparedness
Generators - $3,000
Storm devices - $300
Preparedness items - $75
April28-30Texas Department of Revenue
TexasEnergy Star Products
Air conditioners - $6,000
Other - $2,000
May26-28Texas Department of Revenue
TexasBack to School
Clothing, backpacks and school supplies - $100
August10-12Texas Department of Revenue
VirginiaBack to School
Clothing - $100
School Supplies - $20
Energy Star Products - $2,500
Hurricane preparedness items - $60
Generators - $1,000
August3-5Virginia Department of Revenue
WisconsinBack to School
Clothing, Supplies - $75
Computer Supplies - $250
Computers - $750
August 1-5https://www.revenue.wi.gov/

For further tax holiday information check out this article.

State of Arkansas – Candy and Soda No Longer a Food for Tax Purposes

State Arkansas

State Arkansas

Happy New Year from the State of Arkansas!

Effective January 1, 2018, The Arkansas Department of Finance and Administration is implementing Act 141 which removes candy and soft drinks from the Food taxdefinitions “Food” and “Food Ingredients” and applies the full 6.5% State sales and use tax rate to these items sold at retail.   Before January 1st, candy and soda enjoyed the reduced “food” tax rate of 1.5%. City and County sales and use tax rates continue to apply on these items sold at retail.  

Candy

Candy is defined as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.

Soda

Soft drink means a nonalcoholic beverage that contains natural or artificial sweeteners. A soft
drink does not include a beverage that contains milk or milk products, soy, rice, or similar milk
substitutes, or that is greater than fifty percent (50%) of vegetable or fruit juice by volume.

For more information on the Arkansas state tax rate check our this article.

Tax Changes Effective December 1, 2017

Tax Changes Effective December

December is the last month of the last quarter of 2017.  There are only two states with changes to report.  This is typical for this time of year…..waiting for the many changes expected in January of the new year.

In Arizona, where sales tax is called Transaction Privilege Tax (TPT), the rates changed for Pinetop-Lakeside.

In Alabama, the following rate changes were noted since November 2017:

  1. Town of Cedar Bluff, up to 2.5%
  2. AL DOR sealCity of Centreville, now at 2%
  3. Town of Cuba is now 3%
  4. City of Geraldine increased 1%
  5. City of Gadsden went up to 5%
  6. City of Glencoe increased from 4 to 5%
  7. Town of Mentone is now 4%
  8. the City of Montevallo is now 5%
  9. The City of Southside is 5%

Just a quick note for sales taxes in the Town of Kinston, Alabama: the Town is now going to collect taxes instead of using the State services.

October’s changes can be found here. For changes taking effect January 2018, please check out this article.

Effective with your taxes for the tax period ending December 31, 2017, which are due on or before January 20, 2018, the Town of Kinston’s sales tax will be administered by:

Town of Kinston Revenue Discovery Systems Post Office Box 830275 Birmingham, AL 35283-0725 1-800-556-7274 These taxes may continue to be remitted online through My Alabama Taxes (MAT), the ‘ONE SPOT’ to file: https://myalabamataxes.alabama.gov

 


ZIP changesSome ZIP code changes were found in the following states: Colorado, Florida, Illinois, Ohio, Puerto Rico, and Washington.

Ever get this annoying message when trying to lookup a tax rate by ZIP?

invalid zip message

That is because you entered a ZIP code that is no longer in service with the USPS.  Yes, the USPS does delete ZIP codes when they consolidate regions.  Zip2Tax will keep our ZIP database up-to-date to assist you.

Find more information about how to use our Sales Tax Calculator here.

 


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