Tax Trap: Is Your Business Collecting Sales Tax for Sales In Other States?
The June 2018 Wayfair Supreme Court decision allows states to require out-of-state businesses without a physical presence in a state to collect sales tax if they have economic nexus to a state.
Around 37 states (out of the 45 states with a sales tax) have adopted economic nexus rules.
California’s rules are effective April 1, 2019 and I will post these rules later this month.
Many states require sales tax collection if in current or prior year:
(a) Sales over $100,000 in state
(b) Over 200 transactions in state (including nontaxable transactions)
Certain states have said they will start enforcing this law as of January 2019.
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