Cracking the Sales Tax Code – Economic Nexus
The newly enacted economic nexus laws have businesses scrambling to figure out how the Wayfair vs. South Dakota supreme court decision applies to their transactions. Accordingly, Texas recently published, Texas Tax Responsibilities and Resources, to provide some guidance to remote-sellers. Below is an excerpt of the publication:
“As part of our Wayfair implementation, amendments to Rule 3.286, concerning Seller’s and Purchaser’s Responsibilities, became effective Jan. 1, 2019. The amendments establish a safe harbor for remote sellers whose Texas revenues are below $500,000 in sales of tangible personal property and services in the preceding 12 calendar months. Remote sellers with Texas revenue below the safe harbor amount will not have to register and collect tax. Remote sellers whose Texas revenue exceeds the safe harbor amount shall register and begin collecting tax.”
Now, what about the other 44 states where economic nexus laws apply?
Call Davis Davis & Harmon to speak at your next meeting, We are here to help and educate!
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