In the wake of the June 21st Supreme Court decision in South Dakota v. Wayfair, multiple states have drafted legislation and/or regulatory procedures to begin collecting sales or use taxes from out-of-state remote sellers. In addition to South Dakota, the states of Alabama, Louisiana, Wisconsin, New Jersey, North Dakota and South Carolina recently announced their intent to enforce collections of sales or use taxes on remote out-of-state sellers effective October 1, 2018 or January 1,2019. Each jurisdiction has different compliance thresholds based on the number of transactions and/or total dollar amount of sales made to purchasers in their states, varying rates at which tax is calculated, and different means of reporting to the taxing agencies.
Businesses with customers in these states should verify their requirements to comply with each state’s evolving sales and use tax laws. Additionally, it is likely that other states will take up similar legislation before the end of 2018. Please let us know if you need assistance with determining your potential reporting requirements with these jurisdictions or if you have any questions.
Additional Information by State: Alabama, Louisiana, Wisconsin, New Jersey, North Dakota, SouthCarolina
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