more states enact remote sales tax rules

MOUNT PROSPECT, ILLINOIS (February 12, 2019) - As of now, nearly 60 percent of states have enacted remote transaction sales tax regulations, with more nearly completing their process. Notably, in the last month, New York and Wyoming are the latest to take effect. New York is of concern because its guidance can be interpreted to include all sales beginning on June 21, 2018.

West Virginia is considering legislation that would expand its collection requirements to marketplace facilitators who facilitate sales that clear the state’s threshold ($100,000 in annual sales or 200 transactions).

New Hampshire has resurrected a bill that failed in a special session last year despite having bipartisan support. The bill would prohibit tax agencies from other states to impose sales and use obligations on New Hampshire sellers without first registering with the state’s attorney general.

The bill faces strong opposition from Republicans who believe it would legitimize sales tax obligations on New Hampshire businesses and might be in violation of the constitution. The state's Republicans have offered three alternatives:

  1. A bill that would prohibit New Hampshire from entering into an agreement with a foreign tax jurisdiction
  2. A bill that would prohibit other tax jurisdictions from imposing sales and use tax collection obligations on state retailers
  3. A bill that would require an act of Congress prior to allowing the state’s remote sellers from collecting other states’ sales tax.

Tennessee is considering a bill that would impose South Dakota-style requirements on out-of-state vendors. The bill provides the option to pay a flat local tax rate instead of each municipality’s rate, in addition to the state’s 7 percent rate. Officials have already promised they will not require retroactive collection.

The final update is from the state of Washington. A state bill with more than 20 provisions has bipartisan support and is moving through the legislature. The bill sets a threshold of $100,000 or 200 retail transactions on retailers and marketplace facilitators.

For more information on conforming to remote sales tax laws and regulations, please click here or contact Larry Weindruch at lweindruch@nsga.org.