First and foremost….DON’T FORGET TO VOTE NOVEMBER 6th!
Have you heard the latest news? The remote seller nexus thresholds are changing as early as October 1, 2018 for MANY states! This is in light of the South Dakota v. Wayfair, Inc. ruling where the Supreme Court ruled in favor of South Dakota grant them the ability to impose sales tax obligations on out-of-state transactions.
States have long been aware they’re missing out on out-of-state sales and now the rules are changing. Previously, nexus meant a physical presence in a state. The new rules are based on economic nexus which is based on sales revenue, transaction volume, or a combination of both. This can drastically change your tax obligations!
Most economic nexus is triggered by large dollar or transactions amounts. Typically, sales of $100,000 or 200 or more individual sales transactions are the criteria to trigger this economic nexus.
Take a look at your online sales and compare your numbers to the latest economic nexus laws. There are some great charts out there. Here is a link to one: https://www.avalara.com/us/en/blog/2018/07/States-with-south-dakota-style-economic-nexus-laws.html
South Carolina is one of the states that is enacting these changes for remote sales. Here is their SC Revenue Ruline #18-14 if you’d like to check it out! https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/RR18-14.pdf?sessionId=1540398467726&referrer=https%3A%2F%2Fwww.google.com%2F&lastReferrer=www.avalara.com
This is the direction most states are moving these days. So don’t be too spooked! Look at your books and see if you’ll be on the hook for additional sales tax.
Jordan Ilderton, CPA