3 lagging states move to add online sales tax regs

Even years after South Dakota v. Wayfair gave states the power to tax online sales, some states are still working on adding regulations.

For a while, Florida, Kansas and Missouri were the only three states with state-level sales tax that still hadn’t passed sales tax collection requirements for remote sellers and/or marketplace facilitators.

But lately, all three states made moves. Two enacted new laws, and one is actively trying to do so.

Here are the latest updates A/R and A/P need to know.

Florida

Working in the Sunshine State? Economic nexus rules are finally being enacted here. Beginning July 1, 2021, remote sellers and marketplace facilitators that make more than $100,000 in Florida sales each year must collect sales tax.

So this summer, you’ll want to be sure A/R is adding the correct sales tax. And A/P should keep a close eye on any remote vendors your company does business with to ensure they add the sales tax when necessary.

Kansas

After a lot of back and forth, new economic nexus regs are coming to this state, too.

You might’ve heard the state’s governor recently vetoed a bill with new online sales tax rules. But shortly after, the legislature overrode the veto. Effective July 1, 2021, marketplace facilitators must join remote sellers in collecting sales tax here.

What’s more, you may recall that Kansas’s original remote seller regs didn’t include a threshold (aka, a small seller exception). This bill added one: Only remote sellers that make over $100,000 in Kansas sales annually have to collect sales tax. (Note that the threshold will not apply retroactively.)

Missouri

Now that Florida and Kansas have added marketplace facilitator rules, Missouri remains the only state with a state-level sales tax without such regs. But two circulating bills could change that.

House Bill 544 and Senate Bill 153 would both create collection requirements for marketplace facilitators effective Jan. 1, 2023.

We’ll keep you posted on when or if either of these regulations comes to pass.