Over the last several weeks we have tried to prepare you fro the 'big day,' but you might have ignored us up until now. But everyone needs to be aware that October 1, 2018 might just be one of the biggest 'days' in Sales Tax because numerous states are implementing changes in their sales, use and other taxes that day. In fact, Avalara has named October 1, 2018 as 'Nexus Monday.'
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And speaking of Avalara, Sales Tax Tuesday 2018 is a joint venture between Insightful Accountant and Avalara, 'the Sales Tax people', it's purpose is to update you on what's new and different in Sales and Use tax since our first year-long Sales Tax Tuesday adventure way back in 2015. But despite our intentions to bring you the results of our informative ‘RV tour’ paying sales tax all along the way, it seems that the news makers and taxing authorities have given us so much more to write about than just ‘what to see,’ ‘where to go,’ and ‘what to eat’ in a state near you, as well as the sales tax specific of that state that will impact you while you are seeing the sights, traveling through, and dining in style.
To keep you in the know we have published several additional articles this year on 'what's happening' as it relates to sales tax.. just like today's article covering these two states that are implementing 'economic nexus' provisions within the next couple of weeks. As such, it has become clear that our Sales Tax Tuesday 2018 series will be much more like a Sales Tax Tuesday 2018/2019 series than initially anticipated. Fortunately, the folks at Avalara are hanging-in with us and providing supporting content for anything current coming your way.
Back on the subject of October 1st's new moniker of 'Nexus Monday', economic nexus goes into effect in the states of Alabama, Illinois, Indiana, Kentucky, Maryland, Minnesota, North Dakota, Washington and Wisconsin. Under the various economic nexus enactments in these states, out-of-state retailers, with no physical presence in the state, will still be required to register, collect and remit sales and use taxes based upon their economic activities in each state. These enactments are in response to (and deemed by each state legislature to be in conformity with) the Supreme Court decision this past summer in the South Dakota v. Wayfair, Inc. case.
Sales and Use Taxes
But the 10 states implementing economic nexus on October 1st are not the only changes related to sales tax. There are 14 states with either new state-wide or local jurisdiction tax rate changes, supplemental (or special) taxes, as well as taxability changes and exemptions, going into effect the same day. These 14 states are:
- Alabama also see the Avalara Alabama State Tax Page
- Arizona also see the Avalara Arizona State Tax Page
- Arkansas also see the Avalara Arkansas State Tax Page
- California also see the Avalara California State Tax Page
- Georgia also see the Avalara Georgia State Tax Page
- Missouri also see the Avalara Missouri State Tax Page
- New Jersey also see the Avalara New Jersey State Tax Page
- Ohio also see the Avalara Ohio State Tax Page
- Oklahoma also see the Avalara Oklahoma State Tax Page
- Rhode Island also see the Avalara Rhode Island State Tax Page
- Texas also see the Avalara Texas State Tax Page
- Utah also see the Avalara Utah State Tax Page
- Washington, D.C. also see the Avalara Washington, D.C. Tax Page
- Wyoming also see the Avalara Wyoming State Tax Page
State Sales Tax Auditor
With the tax landscape changing so significantly as a result of both economic nexus and each state's intent of seeking new ways to increase, collect, and insure compliance with sales, use and special taxes; you as Trusted Advisors, and your small business clients, need the assistance of a tax expert like Avalara to help guide you through the pre-Halloween spiderweb of tax changes and the continuing hauntings of the state sales tax compliance goblins.
Avalara provides sales tax automation solutions like AvaTax which includes tax calculation, exemption certificate management, returns processing and 1099 filing and reporting designed to give you and your small business clients an assurance of compliance without sacrificing productivity so that sales tax is way less taxing than ever before even with the complexities of economic nexus and almost endless changes in some jurisdiction you maybe serving. That way you will be certain that your sales tax compliance is more 'treat' than 'trick' when the gremlins turn their attention your way.