Post-Wayfair Aftershocks – When Must Remote Sellers Collect Sales Tax?

Post-Wayfair Aftershocks: When Must Remote Sellers Start Collecting Sales Tax? 

There are many ongoing post-Wayfair developments that SUT practitioners and their clients cannot afford to overlook in the coming months.  We will be tracking these ”Post-Wayfair Aftershocks” in a series of upcoming blogs.  However, probably the most immediate and impactful “aftershock” is the question of when remote sellers must actually start collecting sales tax.  That of course depends upon which states have economic nexus laws that have been “blessed” by the states as constitutional after Wayfair.

With the flood of states continuing to issue guidance almost on a daily basis these days, it is a burden for practitioners to check every day for new guidance.  Here is a chart of states that currently have (or believe they have) economic nexus laws or equivalents on their books with specific proposed collection start dates.  We say “proposed” at this point because some states are not as “clear” as others on any definite start date.  For example:

  • On August 14, New Jersey announced collections starting October 1, 2018; however, on August 27, 2018, the governor conditionally vetoed a sales tax nexus expansion bill, AB 4261 (the Bill), which was introduced and approved by the New Jersey legislature.
  • A South Carolina proposed ruling says October 1, but the ruling has not yet been finalized.
  • In still one more rather goofy legal development, Maryland approved an emergency action on a proposed economic nexus regulation, effective beginning October 1, 2018 and expiring March 30, 2019.

Stay tuned folks—it ain’t over till it’s over!

REMOTE SELLER COLLECTION STARTING MONTH (as of September 14, 2018)

STATE

JUL

AUG

SEP

OCT

NOV

DEC

JAN 2019

ALABAMA

X

COLORADO

X

CONNECTICUT

X

GEORGIA

X

HAWAII

X

ILLINOIS

X

INDIANA

X

IOWA

X

KENTUCKY

X

LOUISIANA

X

MAINE

X

MARYLAND

X (expires 3/31/2019)

MICHIGAN

X

MINNESOTA

X

MISSISSIPPI

X

NEBRASKA

X

NORTH CAROLINA

X

NORTH DAKOTA

X

SOUTH CAROLINA

X (proposed)

UTAH

X

VERMONT

X

WASHINGTON

X

WISCONSIN

X

 

Conclusion:  Need to Stay Current

It is a burden for practitioners and businesses to keep up with state changes on a daily basis; therefore, we will continue to update our blog library [SalesTax.com/Blog] and U.S. sales tax nexus map [https://taxna.wolterskluwer.com/sales-tax-nexus] as things change.

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AUTHOR

Jerome Nestor

Jerome Nestor, Esq., CPA, MBA-Accounting Information Systems Manager Tax & Accounting North America Wolters Kluwer Mobile: +1 847.312.5671 Email: jerry.nestor@wolterskluwer.com

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