Sales Tax Trash Talk
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It's always there for you... 🫶

It's always there for you... 🫶

Sales tax news, an Amazon update, and more...

Rohit Bhadange
February 04, 2024

Welcome back, y’all.

Feeling the love in the air? If there’s one thing you should know around here, it’s that we ❤️ sales tax.

It’s reliable. It’s always there for you, no matter who you are or what you sell. Roses are red, violets are blue—alright you get the point.

Let’s dive into today’s trash, which includes (1) sales tax news, (2) an Amazon update and (3) a question from you.

SALES TAX NEWS

1️⃣ Online merchants selling via Amazon were liable for tax remittance in Washington.

They owed retail sales tax and retailing business and occupation (B&O) tax because as sellers, they remained responsible for the collection and remittance of tax.

2️⃣ A bill introduced in the state House of Representatives would make feminine hygiene products and baby care items exempt from sales and use tax in Kentucky.

3️⃣ A proposed rule amendment would require residents who recently relocated to Minnesota to show that the personal property they brought with them is exempt from sales and use tax.

4️⃣ Kansas would impose sales and compensating use tax on digital property and subscription services under a bill introduced in the House of Representatives.

5️⃣ In Colorado, streaming services provided by Netflix Inc. do not constitute tangible personal property and are not subject to sales tax, according to the company.

6️⃣ Beginning this year, Florida will offer two six-week-long sales tax holidays for the purchase of electric bicycles, electric scooters and protective clothing and equipment.

7️⃣ In South Carolina, a marketplace facilitator was liable for sales tax on sales of products by third-party sellers.

Why? Because it qualifies as a seller pursuant to statute.

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SALES TAX NEVER STOPS 🌀

A South Carolina appeals court ruled that Amazon owes a whopping $12.5M in sales tax.

In 2016, Amazon was required to collect and remit sales tax on products sold on its marketplace.

This was before the Supreme Court ruled in favor of South Dakota in their case against Wayfair in 2018, which created the concept of economic nexus (AKA, one of the biggest changes in US sales tax history).

Yet another humbling reminder that sales tax never stops… not even for Amazon.

Learn more about economic nexus →

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YOUR QUESTIONS, ANSWERED!

Q (Ashley): Do you need both physical and economic nexus to qualify for nexus in a state?

A: If you meet one of the two, you have nexus in the state. You do not have to meet both to have nexus. Just one.

If you have a physical presence in a state (e.g., store, employee, inventory), you have physical nexus. Typically, if you exceed $100,000 in sales or 200 individual orders over a year in a state, you may have met the state’s economic nexus threshold, but state thresholds vary.