NY Sales Tax Nexus

[Catherine]

Anyone here knowledgeable about sales tax nexus rules in New York state?  Client with an online business is expanding and has concerns.  I am clueless in this area.

Please either respond here or send me a private message.  Thanks!

 

[Lee B]

 

 

New York Releases Guidance on Economic Nexus Threshold and Requirements for Remote Sellers

Effective Date: June 21, 2018, the date of the United States Supreme Court decision in Wayfair

Threshold: $300,000 $500,0000 in sales of tangible personal property and more than 100 sales (On June 24, 2019, New York enacted legislation to raise the state’s economic nexus threshold to $500,000. The number of transactions threshold remains the same.)

Measurement Date: Immediately preceding four sales tax quarters

Includable Transactions: $300,000 gross tangible personal property sales

When You Need to Register Once You Exceed the Threshold: Next transaction

On January 15, 2019, the New York State Department of Taxation and Finance released a notice stating that businesses without physical presence in New York that exceed the state’s economic nexus threshold must collect and remit state and local sales taxes. New York did not pass specific legislation to enforce the remote seller collection responsibility. In the notice, the Department states that following the South Dakota v. Wayfair decision, “certain existing provisions in the New York State Tax Law that define a sales tax vendor immediately became effective.” Businesses that fall within the definition of sales tax vendor and make taxable sales into the state are required to collect and remit sales tax.

Remote sellers without physical presence will be required to collect and remit sales tax, if in the immediately preceding four sales tax quarters the seller:

Has made more than $300,000 $500,000 in sales of tangible personal property delivered in the state; and

Conducted more than 100 sales of tangible personal property delivered in the state

The sales tax quarters for New York are:

March 1 through May 31,

June 1 through August 31,

September 1 through November 30, and

December 1 through February 28/29.

Sellers that meet this threshold and are not yet registered as a vendor with New York are expected to do so immediately. For more information, visit the Department’s webpage on the new requirement. (N-19-1 Notice Regarding Sales Tax Registration Requirement for Businesses with No Physical Presence in New York State, New York State Department of Taxation and Finance, January 15, 2019)

UPDATE: On March 26, 2019, the New York Department of Taxation and Finance released a bulletin related to registration requirement for businesses with no physical presence in New York state. This bulletin states that New York’s economic nexus rules became effective on June 21, 2018, the date of the United States Supreme Court decision in Wayfair. Previous bulletins were not as explicit in naming June 21, 2018 as the effective date.

UPDATE: On June 24, 2019, the New York Governor signed S.B. 6615, which raised the state’s economic nexus threshold to $500,000 from $300,000. The number of transactions threshold remains the same at 100 sales.

 

[Catherine]

Thank you SO much!