New York – State Provides No Grace Period For Sales Tax – Requires Immediate Registration

The New York State Department of Taxation and Finance this week released its guidance when remote sellers need to collect and remit sales tax.

In its guidance, the state said, “On June 21, 2018, the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 [2018]) eliminated the prohibition on a state imposing sales tax collection responsibilities on businesses that have no physical presence in that state.”

New York State Compliance Threshold

Remote sellers (out-of-state retailers) with more than $300,000 in sales of tangible personal property delivered in the state and more than 100 sales of tangible personal property delivered in the state in the immediately preceding four sales tax quarters are required to immediately register with the state. The sales tax quarters are:

  • March 1 through May 31,
  • June 1 through August 31,
  • September 1 through November 30, and
  • December 1 through February 28/29.

It should be noted that most other states followed South Dakota’s threshold of $200,000 in sales or 200 transaction in the previous calendar year.

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by Richard Meldner
January 17, 2019