Wayfair: Dazed, Confused, Uncertain? Don’t Worry You’re Not Alone.
By Joni Johnson-Powe, CEO of Taxnologi
I’m sure you’ve heard it over and over and over again…the recent Wayfair ruling will have a significant impact on how and when retailers are legally required to collect sales and use tax in states where they make remote sales. Not only have I also heard this resounding warning but as a practitioner, I’ve had the same conclusion. However, as my team has been helping clients with software configuration updates, review of sales by state, and analysis of their overall footprint, I am not completely sure how it will all play out. Honestly, there are some practical questions for which I don’t have definitive answers.
Download or read the PDF here.
By Joni Johnson-Powe, JD, CPA
Taxnologi Solutions, LLC – CEO/Principal
As I am sure you know, the Supreme Court ruled on June 21, 2018 in favor of South Dakota which enacted a statute requiring out-of-state retailers to collect tax if that retailer has engaged in $100K in sales or 200 transactions in the state.
In retrospect, prior to the oral arguments in April, there seemed to be a strong sense in my professional circles that the Supreme Court had no other option than to overrule the “physical presence” requirement in Quill. However, immediately following oral arguments, there was a swing in the pendulum of positions that perhaps the Court was going to “punt” and push the decision back to Congress.
2017 Mid-Year Sales Tax Changes
Repost from Avalara
Dealing with change is standard operating procedure for many companies: employees leave and are hired; new products are introduced and old ones phased out; there are booms, and there are busts. On top of all that, companies need to account for sales and use tax changes. Significant changes in rates, regulations, and product taxability often take effect July 1, which is the start of a new fiscal year in all but a few states.
At the end of 2016, we shared many of the sales tax changes set to occur January 1, 2017. These included state sales tax rate changes in California and New Jersey, the expansion of sales tax to certain services in North Carolina, the prohibition of taxing more services in Missouri, and a bevy of recently enacted soda taxes and tampon tax exemptions. At mid-year, we’re seeing a few propositions that signify a dramatic shift in online sales tax revenue.