Remote Seller + New Year = New Sales Taxes

Remote Sellers…..Are you ready?

Seven states implemented their economic nexus sales tax rules for remote sellers with the new year.

These States all have effective dates of January 1st.

  • District of Columbia
  • Georgia
  • Iowa
  • Louisiana
  • Nebraska
  • New York
  • Utah

Do you have your sales tax rates in place for each state?  Do you know if you meet the thresholds? See our Economic Nexus Chart for a complete overview of the States and their guidelines.

STATE$ Gross Receipts
Limit
# Retail Sales
Transactions
EFFECTIVE DATEDepartment of Revenue Links
Alabama$250,000October 1, 2018AL DOR Announement
ArkansasProposed $100,000Proposed 200TBDHouse Bill 1002 still in discussion.
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
District of Columia$200,000200January 1, 2019DC Internet Sales Tax Amendment Act of 2018
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
New York$300,000100January 1, 2019NYS DOR Announcement
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
Texas$500,000October 1, 2019
Utah$100,000200January 1, 2019Online Sales Tax Amendments
Vermont$100,000200July 1, 2018VT DOR
Virgina$100,000200TBD
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.

arizona sales tax rate online lookup by zip2taxarizona az sales tax rate ecommerce api by zip2taxarizona sales tax rate from state sales tax rates tables from zip2tax

Use this handy comparison chart to match our services to your needs.

 

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
ArkansasProposed $100,000Proposed 200TBDHouse Bill 1002 still in discussion.
Colorado$100,000200December 1, 2018CO Info for Remote Sellers
Connecticut$250,000200December 1, 2018CT DOR Announcement
District of Columia$200,000200January 1, 2019DC Internet Sales Tax Amendment Act of 2018
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
New York$300,000100January 1, 2019NYS DOR Announcement
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
Texas$500,000October 1, 2019
Utah$100,000200January 1, 2019Online Sales Tax Amendments
Vermont$100,000200July 1, 2018VT DOR
Virgina$100,000200TBD
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 - 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.

Are Pumpkins Tax Exempt in the Fall?

pumpkins

In three states, Pumpkins Are Exempt from Sales Tax…Unless They’re For Carving.

Sometimes, sales tax laws just don’t seem to make sense. Like, who in Indiana thought it was so important to make a distinction between marshmallows and marshmallow creme?  Well, in Indiana, you’ll have to pay sales tax on your marshmallows, but your marshmallow creme gets off tax-free.

Pumpkins are exempt from sales tax in Iowa, Pennsylvania, and New Jersey, but only if the pumpkins are for food rather than jack-o-lanterns.  Sounds like someone likes Thanksgiving more than Halloween!

To check out more weird tax laws click here.

10 weirdest sales tax laws pumpkins from zip2tax

Virtual Currency: Subject to Sales Tax or Not?

Subject to Sales Tax or Not

What is virtual currency? Is it subject to income tax? Is it subject to sales tax? Is it currency? What is it?

Bitcoin

We started talking about Bitcoin a few years ago (first launched in 2009) and how techies were getting rich with it. My question was, what is it and how can you get rich with it? Then, since my world revolves around indirect taxes, I began to wonder if its purchases were subject to sales and use tax. But first I had to understand the basics.

Virtual Currency 101

Bitcoin is a decentralized digital currency through peer-to-peer computer networks, mathematically generated for mining of virtual currency. Bitcoin was initially set up with a limit, which is still in place today, to the amount available for mining (funding) to prohibit devaluation of those already in circulation. Bitcoin was the leader of the process and now there are many followers: Litecoin, Darkcoin, Peercoin, Dogecoin, and Primecoin to name a few.

The prebitcoin-transactionmise of virtual currency is through digital wallets on your computer or mobile phone allowing you to transfer funds to and from other wallet holders. The transaction is included in the block chain – a shared public ledger – with a private key used to sign the transaction, then mined to confirm the transaction. Virtual currency can be bought and sold in return for traditional currency and goods and services.

IRS Definition

The IRS determined that virtual currency is not a real currency with legal tender status, but considered property (IRS Notice 2014-21, 3/25/2014). As of now, no country accepts virtual currency as legal tender; therefore, general tax principles apply to virtual currency same as property transactions. Wages paid by virtual currency is subject to income and payroll taxes at the fair market value and reported on Form W-2.  Goods and services purchased or sold for virtual currencies are considered gross income at fair market value.

Sales Taxes

The Merriam-Webster Dictionary definition of sales tax is “a tax levied on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller”. Virtual currency is considered a barter or exchange transaction for goods or services. The value of the transaction is the retailers or service providers selling price.

Many states are grappling with providing regulations and rules for taxing virtual currency transactions. In New York, purchases of goods or services with virtual currency must have the sales tax in US dollars separately listed on the sales slip or invoice. Wisconsin computes sales tax on the value of consideration by the seller in US dollars. The state of Washington subjects virtual currency transactions to sales and use tax as well as the retailing Business and Occupational tax, in US dollar values.

States are determining purchases with virtual currency do not change the tax classification of the bitcoin-taxpurchase. States are adopting the notion of paralleling virtual currency transactions to barters or exchanges for sales and use tax purposes. The measure of tax is on the amount of the sale in US dollars, regardless to any fluctuation in the virtual currency value. Record keeping of virtual currency transactions should be the same as legal tender transactions.

What this means for retailers or service providers accepting virtual currency –the retailer must either collect sales tax on taxable transactions or the purchaser is liable for the use tax. Under audit, the retailer will most likely be held responsible for non-collection. The sales tax should not be recorded in virtual currency value, but in US dollar values. The same liabilities and penalties will apply to virtual currency transactions as to legal tender transactions if they are not handled properly.

Bottom Line

The calculation of virtual currency is not easy to understand or to use. More retailers and service providers are accepting virtual currency for payment. Hotel rooms, online purchases, sports event purchases are becoming more popular among a certain technical population.

Remember:

  • Purchases of goods and services with virtual currency are generally subject to applicable sales and use tax rules at the fair market value of the purchase.
  • The purchase of virtual currency is generally non-taxable and considered a purchase of intangible property.

Questions still at large, at federal and state levels:

  • Regulations and licensing for virtual currency transactions
  • Foreign monetary issues
  • Income taxes are still vague
Laura_Hoffman_photo

Laura Hoffman

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