April 2021 Roundup: Sales tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your tax compliance.

There were a few big developments in the world of sales and use tax in April. Read on for details.

If it’s essential, should it be exempt?

Should sales and use tax apply to essential items like diapers and feminine hygiene products? Lawmakers in more than 16 states think not. Learn more.

Summertime can be a tax-free time.

COVID-19 has been hard on everyone, but some businesses have suffered more than others. Wisconsin may create a one-time summer sales tax holiday to give hard-hit businesses a boost. Learn more.

A different kind of story.

Data from Avalara and the Tax Policy Center suggests there’s a correlation between the states with the highest sales and use tax remittance and those with higher state tax revenues. Learn more.

And then there was one.

Starting July 1, 2021, Florida will require out-of-state sellers to collect and remit sales tax if their taxable sales into the state in the previous calendar year exceeded $100,000. Missouri is now the only state with a general sales tax that hasn’t adopted economic nexus. Learn more.

Maybe it’s time for a different approach.

Despite overwhelming support in the capitol, Kansas just can’t get an economic nexus threshold or marketplace facilitator law over the finish line. Or can it?  Learn more.

Rate changes

A healthy handful of sales and/or use tax rate changes took effect May 1, 2021. Learn more.

How quickly can you remit?

Mississippi has eliminated an accelerated sales tax payment requirement, while Massachusetts may adopt one. If it does, it won’t be alone. Learn more.

Can I see some identification?

Beverage alcohol licensees are responsible for ensuring alcohol isn’t sold to people under the legal drinking age, even when selling through a third-party delivery service. Thus, licensees must work hand in hand with service providers to create an airtight process. Learn more.

Differing requirements for different values.

U.S. retailers selling directly to customers in the U.K. must collect value-added tax (VAT) at the point of sale for all shipments valued at or below £135. However, for goods valued above £135, VAT is still due upon entry into the U.K. Learn more.

Where would you rather live (and work)?

Although motivated by very different reasons, both Hawaii and Oklahoma are encouraging certain businesses to set up shop in their states. Learn more.

Automating tax compliance helps businesses of all sizes navigate the changing seas of sales tax.