TaxOps.com
Tax News

Wayfair rollout: New York clarifies economic nexus guidelines

States continue to roll out policies to tax remote sales across the nation as one-by-one, states implement broader tax collection policies in the aftermath of the Supreme Court decision in South Dakota v. Wayfair, Inc. Among the latest to implement economic nexus guidelines is New York.

On January 15, 2019, the New York State Department of Taxation and Finance issued a Notice explaining its position on economic nexus for sales tax purposes. New York, previously one of five holdout states where no Wayfair guidance was expected, stepped out from the pack of other holdouts to require collections from remote sellers. 

Like most states, New York's new guidance provides a small seller exception under the following conditions:

  • Made more than $300,000 in gross sales of tangible personal property delivered in the state (both taxable and exempt sales); and
  • Conducted more than 100 sales of tangible personal property delivered in the state.

Compared to other small seller exceptions, New York’s dollar amount is significantly higher, while the transaction count is significantly lower. Because both conditions must be met, the small seller exception is considered more generous than other states, most of which are modeled on the South Dakoka safe harbor.

The New York guidance does not set an effective date for enforcing economic nexus. This creates potential tax liability for remote sellers that could date as far back as the Wayfair ruling, June 21, 2018.

Businesses that meet the threshold but are not yet registered as a vendor should do so using New York Business Express (see Tax Bulletin How to Register for New York State Sales Tax (TB-ST-360)). Additional information concerning this requirement will be available at www.tax.ny.gov.

Learn more: New York State Department of Taxation and Finance

Let's talk tax

Judy Vorndran can be reached at jvorndran@taxops.com or 720.227.0093. Follow Judy on LinkedIn.

Subscribe to Our Blog

IRS rules on 20 percent tax break

How High Are State and Local Tax Collections in Your State?

Sales Tax Exemption Certificates: Collect the Tax or Get the Doc

Upcoming webinars

Sales tax audit survival guide (Free-CPE)

Updated taxability strategies in a post-Wayfair e-sales environment (Free-CPE)

Sales tax exemptions: Collect the tax or get the doc

Sales tax in 2019: What do you really owe? (Archived)

Who's on the hook? Managing risk from sales tax registration (Archived)

Specialties: #statetax, #taxreform, #Wayfair