2020 is on pace to see the second-highest total number of sales tax changes in more than ten years. Michael Bologna and Tripp Baltz recently covered insights from Vertex Vice President of Tax Research, Bernadette Pinamont, and the annual Vertex Midyear Sales Tax Rates and Rules Report.
The Week in Wayfair: The world of e-commerce selling is still adapting to the U.S. Supreme Court’s groundbreaking 2018 ruling in South Dakota v. Wayfair, which permitted states to impose tax collection duties on remote retailers based on economic activity in a state rather than physical presence. Most of the 45 sales tax states have enacted laws requiring remote sellers and marketplace facilitators to collect and remit taxes. With most legislatures adjourned, the states are focusing on guidance and tax collection rules. This week Georgia and Kentucky ran into trouble with the Streamlined Sales and Use Tax Agreement, Illinois posted new marketplace facilitator rules, the governor of Louisiana answered questions about the state’s remote sales tax law, and a report showed tax rates are changing.
Two States Are on the Sales Tax Naughty List. A committee of the Streamlined Sales and Use Tax Agreement (SSUTA) has found Georgia and Kentucky out of compliance with the sales tax harmonization pact.