Tax News

On March 11, 2024, Delegate David Moon (D) introduced H.B. 1515 to the House Ways and Means Committee of the Maryland General Assembly, through which he proposed to broadly expand the sales tax base to cover many services, while reducing the sales tax rate from 6% to 5%.  Delegate Moon proposed that expanding the ...

As 2023 comes to an end, lets recap a few important sales tax changes and offer insight into what taxpayers can expect for 2024:

·      Economic Nexus Transaction Counts – Initially, more than half of the states adopting economic nexus thresholds included a transaction count element as part of the threshold, meaning that a remote seller would ...

2022 is expected to bring heightened enforcement and increased sales tax audit activity for remote sellers.  Charles Maniace, a vice president at the tax software firm Sovos, states that “States are now truly ready to [start] being fairly aggressive in their enforcement against existing online sellers.”  [Forbes, Sales Taxes in 2022 – Issues to Watch for ...

As 2021 comes to an end, lets recap a few important sales tax changes and offer insight into what taxpayers can expect for 2022:

  • Economic Nexus – As of July 2021, two states, Florida and Kansas, have sales tax economic nexus. While both measures impose a safe harbor threshold of $100,000 in annual sales, below ...

As we have previously reported, since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, 585 U.S. __ (June 21, 2018), forty-four (44) states (all except Florida and Missouri) have adopted economic nexus provisions for sales tax compliance purposes.  Even the Alaskan local jurisdictions have gotten in on the action, adopting ...

As we have previously reported, since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, 585 U.S. __ (June 21, 2018), forty-three (43) states have adopted economic nexus provisions for sales tax compliance purposes.  The biggest trends right now are that states are revising their thresholds and also adopting marketplace nexus ...

As we have previously reported, since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, 585 U.S. __ (June 21, 2018), forty-three (43) states have adopted economic nexus provisions for sales tax compliance purposes.  Arizona and Oklahoma are most recent states to enact an economic nexus provision for remote sellers.

Since ...

Since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, 585 U.S. __ (June 21, 2018), forty-two (42) states have adopted economic nexus provisions for sales tax compliance purposes.  With the state legislative sessions in full swing, we are seeing the predictions become a reality.  The most compelling change is the ...

Since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, 585 U.S. __ (June 21, 2018), we now have thirty-eight (38) states that have adopted economic nexus provisions for sales tax compliance purposes.  With the state legislative sessions in full swing, we are seeing the predictions become a reality.  We highlight ...

As I predicted in my March 24, 2018 article “The Future of the Quill Sales Tax “Physical Presence” Nexus Standard – Part Two”, yesterday the United States Supreme Court threw out the 51 year old physical presence sales tax nexus standard, when it rendered its decision in South Dakota v. Wayfair, Inc., et al ., 585 U ...

In Part One of this two-part article, we discussed the physical-presence requirement for sales tax nexus, as established by the U.S. Supreme Court in the 1992 case Quill Corp. v. North Dakota, 504 U.S. 298 (1992).  We also provided an overview of the Court’s decisions that led to the Quill physical-presence standard ...

The United States Supreme Court is set to hear oral arguments on April 17, 2018, in South Dakota v. Wayfair, Inc. et. al. [South Dakota v. Wayfair Inc., et. al., 901 N.W.2d 754 (S.D. September 13, 2017); cert. granted (U.S. January 12, 2018)(No. 17-494)]  At issue is whether the Court ...

If you’re an online seller using the Amazon FBA program to facilitate sales, there’s a lot to absorb and consider these days regarding sales tax compliance.  Depending on who you talk to, you may get different advice:

1. Some attorneys, hungry to fight the legal issues in court (a highly costly endeavor with no ...

The Multistate Tax Commission (MTC) has just announced a special tax amnesty program for unregistered online marketplace sellers that have established nexus and historical exposure as a result of storing inventory in third-party fulfillment centers that facilitate retail sales into the state (e.g., Amazon FBA program). Under the program, eligible taxpayers may obtain amnesty ...

U.S. Supreme Court Declines to Review Florida Sales Tax Imposed on Out of State Inventory Delivered to Out of State Customers

In yet another blow for taxpayers, the U.S. Supreme Court has denied a taxpayer's request to review the Florida Supreme Court's decision upholding Florida sales and use tax on Internet ...

In a petition filed with the Supreme Court of the United States on October 24, 2016, American Business USA Corporation (American Business) seeks a writ of certiori to review the judgment of the Supreme Court of Florida. [American Business USA Corp. v. Florida Department of Revenue, U.S. Supreme Court, Dkt. 16-567, petition for certiorari ...

Ohio is the most recent of states to have enacted a click-through nexus provision. To date, 24 other states have adopted (by statute or otherwise) some form of either an affiliate nexus or a click-through nexus provision.

Under an affiliate nexus provision, a rebuttable presumption of nexus is typically established for an out-of-state seller that ...

Ever since, and even before, the U.S. Supreme Court’s landmark 1992 decision in Quill Corp. v. North Dakota, in which it affirmed the Commerce Clause ‘physical presence’ standard for sales tax nexus, Congress has continually grappled with the increasing sales tax revenue shortfalls and perceived unfair advantage that online and mail-order retailers have ...

Effective January 1, 2015, out-of-state retailers are once again presumed to have sales tax nexus in Illinois if they satisfy the following criteria:

• the out-of-state retailer has a contract with a person in Illinois;
• under the contract, the person in Illinois refers potential customers to the retailer and the retailer pays to the person in ...