Multi-state sales and use tax
What is Affiliate Nexus?
Affiliate nexus is imposed when an out-of-state business has an “affiliate” located within the state. The theory behind affiliate nexus is that the relationship between the in-state business and out-of-state business is such that the out-of-state business has a sufficient presence within the state for it to be required to collect and remit sales tax.…
Read MoreWhat is Click-Through Nexus?
Click-Through Nexus, often associated with the Amazon sales tax case that challenged it, is still confusing taxpayers almost a decade after the landmark case. Unfortunately, the new landmark case of South Dakota v. Wayfair that came down from the Supreme Court of the United States in mid-2018 has overshadowed this under-discussed nexus standard while simultaneously…
Read MoreWhat is Economic Nexus?
Sales tax law changed forever in June 2018 when the Supreme Court of the United States issued a ruling in the South Dakota vs Wayfair case. Prior to the Wayfair case, the law of the land was that businesses collected and remitted sales tax in the states in which they were physically located. However, with…
Read MoreFlorida New Economic Legislation Bill
Each week, more states continue to propose and/or adopt new legislation in response to the South Dakota v Wayfair US Supreme Court holding on June 21, 2018. Of the larger states, Florida has remained mysteriously silent on whether it would follow the economic nexus legislation produced by South Dakota and repeated by dozens of other…
Read MoreWhat is the Definition of Nexus?
Sales Tax After Wayfair In June 2018, the Supreme Court of the United States made a ruling in South Dakota vs. Wayfair that changed sales tax law forever. Why? The short answer is: internet sales. Remember the first time you purchased something on Amazon and realized you didn’t have to pay sales tax? Like many…
Read MoreIllinois Takes on Wayfair Legislation
Like so many other states, Illinois has established an economic nexus threshold following the U.S. Supreme Court’s Wayfair decision, that became effective October 1, 2018. The Supreme Court previously ruled that an out-of-state seller’s liability to collect and remit the tax to the consumer’s state depended on whether the seller had a physical presence in…
Read MoreCalifornia Continues Fulfill FBA Sales Tax Assessments
Since 2017, California’s Department of Tax and Finance Administration (CDFTA), formerly the Board of Equalization, has been bombarding businesses that use Amazon’s FBA services for sales tax liabilities. Many Amazon sellers received an email in October 2018 reminding them that California has their company’s name, address, and EIN. Sellers that were already registered and collecting…
Read MoreOhio Supreme Court Rules on Baseball Sales Tax Case
It is common at sporting events for teams to offer freebies or give-aways, such as t-shirts, towels, bobbleheads and other memorabilia, to the first set number of fans who attend the game. Because they’re free, the sales tax consequences of these give-aways are not always contemplated. However, the cost of overlooking them can result in…
Read MoreNorth Carolina Department of Revenue Issues Letter Ruling on Taxation of SaaS Cloud Based Software
The North Carolina Department of Revenue issued a determination on whether a taxpayer’s license revenue from its subscription agreements for access to cloud-based software was subject to North Carolina sales or use tax when the subscriber is located in North Carolina. The taxpayer is the developer and owner of an enterprise software application product used…
Read MoreNorth Carolina Provides Guidance on Photograph Tint or Color Charges
North Carolina issued guidance to retailers who derive gross receipts from sales of services to tint or color photographs. Effective September 1, 2018, charges for tinting or coloring a consumer’s tangible or digital photograph are subject to North Carolina sales and use tax. Specifically, the sales price or gross receipts derived from these services are…
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