Remote Sales and Economic Nexus – Change is Coming!
May 4, 2017
Louisiana, Massachusetts, Tennessee and Wyoming all recently announced changes that impact remote sales and economic nexus – details are below. Look for an update later this month from our sales & use tax group on the pending settlement of software issues.
State of Louisiana approved House Bill 1121 effective July 1, 2017. This bill states that an out-of-state vendor which is not subject to sales tax where the cumulative sales of the retailer and its affiliates exceed $50,000 per calendar year must:
At the time of the sale – Provide Louisiana purchaser with notice that its purchase is subject to use tax:
State of Massachusetts issued directive 17-1 (April 3, 2017) requiring internet vendors or businesses making remote sales into Massachusetts to collect and remit tax if they meet the following classifications:
This new economic nexus standard is effective on July 1, 2017.
State of Tennessee issued Rule 1320-05-01-.129 (effective January 1, 2017) (“Rule 129”) stating the following:
An out of state seller / remote seller has substantial nexus in the state if:
Any business meeting these qualifications must register for sales and use tax purposes, and report and pay on sales of tangible personal property and other taxable items delivered to Tennessee consumers beginning July 1, 2017.
State of Wyoming passed House Bill 19 (March 1, 2017) stating the following:
A vendor has sales and use tax nexus in Wyoming if:
This bill is effective July 1, 2017. This allows the Department of Revenue to seek a declaratory judgment that economic nexus law is valid, which would also delay the effective date of the bill.
If you have questions or would like to talk to us about other sales & use tax matters, please call Smith & Howard’s Sales & Use Tax practice leader, Tim Howe, at 404-874-6244 or fill out the form below.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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