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2024: What’s coming up in sales tax

TaxConnex

Weaker state revenue The kind of year it’s going to be for state coffers could greatly influence such future sales tax trends as new levies, tougher nexus thresholds and intensifying audits. States expected to be hit hardest by falling sales tax revenue are Idaho, South Dakota, Louisiana, South Carolina and Florida.

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States ease nexus thresholds

TaxConnex

Thresholds were established, filing forms and deadlines fixed and one by one states waited for the money to roll in (with Florida and Missouri among the latest of the 45, with Alaska perhaps soon to join them). And the money did roll in for a while, especially during the pandemic when eCommerce exploded. Who’s taken the latest action?

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Happy fifth birthday, Wayfair, as your rules keep changing

TaxConnex

From SCOTUS to ‘patchwork’ In June 2018, the Supreme Court’s narrow decision in South Dakota v. Of the 45 states with a statewide sales tax, the most recent to institute economic nexus were Florida and Missouri ( NOMAD state Alaska might join them soon). Wayfair, Inc. See a history of sales tax here.) Easing off?

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Risks of misunderstanding the impact of economic nexus

TaxConnex

In June 2018, the Supreme Court determined in South Dakota v. The Court’s reasoning: the South Dakota law regulating home goods and furniture giant Wayfair did not burden retailers because only merchants doing a large annual business in the state were required to collect. Wayfair, Inc. How is technology being taxed?

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Do you really understand economic nexus for sales tax?

TaxConnex

The decision stemmed from a South Dakota law of 2016 requiring any out-of-state business to collect sales tax in South Dakota if they had generated more than $100,000 in gross sales or had more than 200 sales into the state within a year.

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Four years since Wayfair: A trend takes hold

TaxConnex

Then came the Supreme Court’s 5-4 decision in South Dakota v. Among states without a sales tax, Alaska municipalities were banding together to administer local sales taxes on remote commerce. Companies also wondered if they were collecting and remitting the correct sales tax – and if they were at risk for audit.

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Don't Test Your Luck with Non-Compliance

TaxConnex

Supreme Court Case, South Dakota v. sales tax audits ?are sales tax audits to increase over the next two years.? already seen an increase in audits over that same time. And i n Alaska, individual municipalities are? See our tips for managing a sales tax audit.) and pandemic,? are likely to increase.