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2021: The Year in Review – Sales Tax

TaxConnex

Even then, however, such states as Massachusetts, Michigan, South Carolina and Maryland were among those continuing to extend filing and sales tax payment relief that had started during the pandemic. About this time, Maryland started popping up in the news for spearheading a new effort in sales tax. Illinois, on Jan. New players.

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Sales and Use Tax Updates from February

TaxConnex

In one of the biggest developments, the two remaining states with a sales tax that don’t require online (or otherwise remote) businesses to collect and remit tax – Florida and Missouri – may be inching toward instituting post- Wayfair nexus requirements and sales tax obligations. Missouri lawmakers considered a remote sellers ’ ?

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Sales Tax on Shipping: When Does it Apply?

TaxConnex

Shipping does not incur sales tax in Missouri. Stating the shipping cost separately on the invoice affects its taxability in Alabama, Arizona, Illinois, Iowa, Maryland, Oklahoma, Utah, Virginia and Wyoming. In Maryland, the shipping charge becomes taxable when it’s combined with handling.

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Do you really understand economic nexus for sales tax?

TaxConnex

Most recently, Florida and Missouri became the last states with a sales tax to enforce economic nexus. Maryland has greenlighted the nation’s first tax on digital advertisements ; the gross receipts tax on digital ads ranges from 2.5% Though some called the Maryland law? More of the same ahead.

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Monthly Review of What's New in Sales & Use Tax

TaxConnex

Biggest news: Missouri will likely soon join fellow holdout Florida in establishing economic nexus requirements. The Missouri Legislature has passed? Digital services is a hot new area in which to require collection and remittance of sales tax – especially after Maryland broke the ground of taxing digital advertising earlier this year.

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Economic nexus overview - all states with sales tax now active

TaxConnex

Missouri becomes the last such state on Jan. Digital products can also create complex sale tax situations, though recently Maryland suffered a setback in court regarding its proposed taxing of digital ad sales. Wayfair, Inc et al decision. Economic nexus is in addition to physical presence rules.

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Preparing Your Business for Sales Tax Holidays

TaxConnex

Other states like Maryland, Missouri, Texas, and Virginia have holidays for energy-efficient devices. Many states grant a holiday for going back to school and exempt sales tax on such items as clothes, footwear, computers, calculators, school supplies, books, and backpacks.

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