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, 2018SD 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!

 

 

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 - 4Louisiana 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
August1-5https://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.

The Startup Checklist

The Startup Checklist: Building a Strong Foundation for Business

So, you’ve created a startup. Now what? This checklist is designed to help people who have just begun their business and aren’t sure where to proceed from here. There’s a lot of work to be done, but understanding the core aspects of your business strategy can help you make these decisions moving forward. Each item on this list is important for building a client base, producing a quality product and managing your finances.

Know Your Mission Statement

Does your company have a mission statement? If not, it should. The mission statement is a short statement that describes your business’s intentions and goals. Mission statements help set the tone for employees and for customers who want to know why your business exists and what your business can do for its clients.

Have A Business Plan That Fits Your Mission Statement

Your business plan is the key to your business’s success. Without a plan, the actions of your business may become random, ineffective and unproductive. A business plan is an all-encompassing document that describes the nature of your business, the mission of your business, long-term goals, financial information and other important details. An effective business plan is your road map to success. This is where many startups fail.

How do you write a business plan? Work with a business planner consultant or partner with a Small Business Development Center in your area for help and advice.

Develop Your Brand

A remarkable brand identity can help your small business stand out from the competition. Brand identity is what makes your company seem different, special and better than the other businesses in your field. Developing a brand is a multi-step process that continues for the life of your business.

  • Know your customers.
  • Target your advertising.
  • Develop a logo.
  • Choose the colors and style that project the character of your business (yes, this is actually important).
  • Reinforce your brand with all elements of design, from your website to buildings where your business is located.

Market Your Business

Marketing your business is important for growing your customer base. Marketing is done in many ways. Advertisements, blog posts, informational newsletters, emails and signs are all ways that many businesses market their services and attract new customers. Many modern forms of marketing focus on drawing customers to the business by providing quality content and information that customers need. This indirect form of marketing can help develop customer loyalty and trust, while also establishing a good reputation for the business.

Track Your Finances

Running a business is going to be more expensive than you think, and tracking your company’s profits is going to be more difficult than you know. Find out how much money your business is really making, how much you can plan to make in the future, how to track growth and how much you can afford to pay your employees. Be realistic, but don’t be so conservative that you never take any necessary risks.

Don’t Forget Your Taxes

Once your business is up and running, you’ll need to pay taxes and charge sales tax. Many businesses use tax/accounting software to help them stay within legal bounds. For startups, this is often essential. You’re spending your time managing and growing your company—time you spend elsewhere is time that could be used making a sale. Zip2Tax supplies sales and use tax rates by ZIP code to help your business charge the right amount of sales tax for each transaction. Moving forward with the right software can help your company start off business in the right way.

Greg Geilman is a Los Angeles native of over 40 years and owner of South Bay Residential.

Los Angeles County CA – Measure H

Los Angeles County CA – Measure H

Measure H goes into effect October 1, 2017

Los Angeles County CA – Measure H

Measure H, a sales tax measure to fund homeless services and prevention,  was on the ballot for Los Angeles County voters, on March 7, 2017 and was approved by the required two-thirds super majority.

The result is a 0.25% increase in the sales tax rate in Los Angeles County effective October 1st.  This will bring the rate in unincorporated Los Angeles County and incorporated cities lacking a district tax to 9.5%.

Some cities in the county, however, will not increase because they are already at the maximum combined district rate of 10.25%.  Those cities are:

  • Compton
  • Long Beach
  • Lynwood
  • Mirada
  • Pico Rivera
  • Santa Monica
  • South Gate

In the event that a local tax in the above named cities should expire, then the Measure H rate will kick in immediately.

Measure H is set to expire in ten years on September 30, 2027.

 

The result is a 0.25% increase in the sales tax rate in Los Angeles County effective October 1st.  This will bring the rate in unincorporated Los Angeles County and incorporated cities lacking a district tax to 9.5%.The result is a 0.25% increase in the sales tax rate in Los Angeles County effective October 1st.  This will bring the rate in unincorporated Los Angeles County and incorporated cities lacking a district tax to 9.5%.

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