The Multistate Tax Commission (MTC) is updating its Public Law 86-272 guidance, “Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States under Public Law 86-272,” to address internet activities. This guidance was last updated in 2001. The latest draft guidance, dated October 15, 2019, provides examples of…
New York State increased the sales tax economic factor presence nexus threshold from $300,000 to $500,000. The change is retroactive to June 1, 2019. Accordingly, marketplace providers with no physical presence in the state are required to register and collect New York sales tax if the provider’s gross receipts from…
There were two competing bills regarding tax sharing agreements (TSAs) this legislative session: SB 531 and SB 485. The former would have barred all TSAs at the local level as of January 1, 2020. The latter would not bar TSAs but instead would require the locality to report certain information…
Pillsbury is proud to partner with TEI’s NY Chapter to host their State & Local Chapter Meeting. Join Pillsbury SALT and TEI NY Chapter members for “Sales Tax: Transformation in Action.” In a presentation designed for sales tax compliance professionals at all levels, Sheila Rao, Senior Vice President, TEI NY…
(This article originally was published by Law360 on May 17, 2019.) In the last year, several state legislatures have enacted laws and several state courts have published decisions on whether software as a service, or SaaS, is subject to sales and use tax. These developments impact many SaaS providers, especially…
TAKEAWAYS New legislation sets California’s sales and use tax economic nexus threshold to $500,000. New legislation creates Marketplace Facilitator Act, statutorily defining marketplace facilitators as retailers and sellers. On April 25, 2019, California enacted comprehensive marketplace facilitator legislation. Many said last fall this would be an impossible feat given the…
Pillsbury attorneys speak on a number of tax-related issues at the TEI Mergers & Acquisitions Seminar on March 7. Topics include Corporate, Sales/Use Tax, State Income Tax, Federal Income Tax, Property/Transfer Taxes, Regulatory, and Employment and Labor.
TAKEAWAYS The Court holds that the South Dakota law satisfies the Commerce Clause “substantial nexus” requirement based on the “economic and virtual contacts” with the State. The Wayfair decision does not prohibit the retroactive application of this new standard for Commerce Clause “substantial nexus.” The decision strikes a blow to the…
On April 13, Pillsbury senior counsel Richard Nielsen presents “Sales Taxation of Digital Commerce in the United States” during the the “Digital Economy in the Crosshairs” panel session at the American Bar Association’s 18th Annual Tax Planning Strategies U.S. and Europe Conference.
(This article originally was published by Law360 on October 10, 2017.) States historically have had one major impediment to their ability to collect sales tax—the decision in Quill Corporation v. North Dakota to uphold a physical presence test standard for determining nexus.[1] Since the Quill decision, states have applied various…