Multi-State- Sales Tax Laws Roundup: April-May 2020

At the start of April, individuals and organizations were just coming to terms with stay-at-home orders and closures of nonessential businesses. As states start to relax those provisions, businesses are beginning to prepare for what comes next.

Because Florida doesn’t require out-of-state online sellers to collect and remit sales tax, the state missed out on significant sales tax revenue when residents switched to online shopping because of COVID-19. This could motivate lawmakers to reconsider economic nexus legislation. Learn more.

Georgia’s new marketplace facilitator law went into effect April 1, 2020, just in time to ensure food delivery platform providers collect and remit sales tax on behalf of the third-party sellers delivering takeout food during the pandemic. Learn more.

Come October 1, 2020, marketplace facilitators will be required to collect and remit sales tax on third-party sales made in Tennessee. Learn more.

Once you establish sales tax nexus in California, it’s not easy to shake. Learn more.

Learn more about relief options in AlabamaCaliforniaFloridaMarylandNew York, and Washington.

The presence of employees in a state generally establishes sales tax nexus for their employer. However, employees working temporarily from home due to stay-at-home orders won’t trigger nexus in some states for the duration of the crisis. These states have made clear this more lenient policy is temporary. Learn more.

For more information: CPA Practice Advisor

CPA Practice advisor
By Gail cole
May 12, 2020